Niya wishes to purchase a set of home theatres that cost her RM30,000. She had two options to consider: Option A Option B 5.5% from the selling price 6% from the selling price 4.5% simple interest rate 5.3% on reducing balance monthly 24 month Down payment Interest rate Mode of payment Period of payment (a) Value of the down payment (b) The value of interest charge monthly 24 month (c) The value of the periodic payment d) Based on the total interest charge, which option should Niya consider?
Niya wishes to purchase a set of home theatres that cost her RM30,000. She had two options to consider: Option A Option B 5.5% from the selling price 6% from the selling price 4.5% simple interest rate 5.3% on reducing balance monthly 24 month Down payment Interest rate Mode of payment Period of payment (a) Value of the down payment (b) The value of interest charge monthly 24 month (c) The value of the periodic payment d) Based on the total interest charge, which option should Niya consider?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:1. Niya wishes to purchase a set of home theatres that cost her RM30,000. She had two options to consider:
Option A
Option B
5.5% from the selling price 6% from the selling price
4.5% simple interest rate 5.3% on reducing balance
monthly
24 month
Down payment
Interest rate
Mode of payment
Period of payment
(a) Value of the down payment
(b) The value of interest charge
monthly
24 month
(c) The value of the periodic payment
(d) Based on the total interest charge, which option should Niya consider?
(Total
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