Troy wants to buy an additional screen for his computer which he saw in an advertisement for RM2500 on the internet. There is an option of paying a 10% deposit and then making 24 monthly payments using a hire purchase agreement, where interest is calculated at 7.5% p.a. simple interest. i) What is the amount of deposit paid? ii) Calculate the amount of loan under the hire purchase agreement. iii) How much is the total interest charged by the bank? iv) What is the total amount of money Troy has to pay for the loan and the interest? v) Calculate the monthly instalments. Round your answer to 2 decimal places.
Troy wants to buy an additional screen for his computer which he saw in an advertisement for RM2500 on the internet. There is an option of paying a 10% deposit and then making 24 monthly payments using a hire purchase agreement, where interest is calculated at 7.5% p.a. simple interest. i) What is the amount of deposit paid? ii) Calculate the amount of loan under the hire purchase agreement. iii) How much is the total interest charged by the bank? iv) What is the total amount of money Troy has to pay for the loan and the interest? v) Calculate the monthly instalments. Round your answer to 2 decimal places.
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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Need help iii) and iv).
Transcribed Image Text:b) Troy wants to buy an additional screen for his computer which he saw in an advertisement for
RM2500 on the internet. There is an option of paying a 10% deposit and then making 24 monthly
payments using a hire purchase agreement, where interest is calculated at 7.5% p.a. simple
interest.
i) What is the amount of deposit paid?
ii) Calculate the amount of loan under the hire purchase agreement.
iii) How much is the total interest charged by the bank?
iv) What is the total amount of money Troy has to pay for the loan and the interest?
v) Calculate the monthly instalments. Round your answer to 2 decimal places.
vi) Calculate the final month payment.
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