Mike is renovating his house and plan to have a new bedroom furniture. He purchased the furniture e costing RM 12,000 through an installment plan. He has to pay 10% down payment and 18 monthly payment of RM 650 each.

Mike is renovating his house and plan to have a new bedroom furniture. He purchased the furniture e costing RM 12,000 through an installment plan. He has to pay 10% down payment and 18 monthly payment of RM 650 each.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Mike is renovating his house and plan to have a new bedroom furniture. He purchased the
furniture e costing RM 12,000 through an installment plan. He has to pay 10% down
payment and 18 monthly payment of RM 650 each. Using the constant ratio method,
find the

a) flat rate (simple interest rate charged (to 2 dp).

b) approximate actual annual percentage (APR) (to 2 dp).

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Please help complete in the same format.
Can you please help asap