3. Azman purchased a land at a price of RM 280,000. He paid RM W as a down payment and borrowed the balance from a finance company that charged 6% compounded monthly. (a) If Azman paid RM 1,533.44 at the end of every month for 25 years, calculate the amount of down payment RM W that he made. (b) Immediately after making 121th payment, he had loan refinanced at 4% compounded monthly. What is the new monthly payment if the number of payment remained the same? (c) Calculate the interest charged on his loan. (d) Calculate the effective rate equivalent to the nominal rate in part (b).

3. Azman purchased a land at a price of RM 280,000. He paid RM W as a down payment and borrowed the balance from a finance company that charged 6% compounded monthly. (a) If Azman paid RM 1,533.44 at the end of every month for 25 years, calculate the amount of down payment RM W that he made. (b) Immediately after making 121th payment, he had loan refinanced at 4% compounded monthly. What is the new monthly payment if the number of payment remained the same? (c) Calculate the interest charged on his loan. (d) Calculate the effective rate equivalent to the nominal rate in part (b).

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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