A company purchase an equipment at a price of RM368 000 and makes a down payment of 10% of the purchase price. The company amortises the balance with 360 monthly payments at an annual interest rate of 4.5% which is compounded mothly. (a) Calculate (i) the monthly payment (ii) the total interest payable (b) If the company does not settle the first six monthly payments, determine the total amount payable on the seventh month. Assume no extra charge on late payment. (c) If the monthly payment is RM1996.40, calculate the number of monthly payments required to amortise the loan.

A company purchase an equipment at a price of RM368 000 and makes a down payment of 10% of the purchase price. The company amortises the balance with 360 monthly payments at an annual interest rate of 4.5% which is compounded mothly. (a) Calculate (i) the monthly payment (ii) the total interest payable (b) If the company does not settle the first six monthly payments, determine the total amount payable on the seventh month. Assume no extra charge on late payment. (c) If the monthly payment is RM1996.40, calculate the number of monthly payments required to amortise the loan.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 11EB: Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from...

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