Need help v) and vi). b) Troy wants to buy an additional screen for his computer which he saw in an advertisement forRM2500 on the internet. There is an option of paying a 10% deposit and then making 24 monthlypayments using a hire purchase agreement, where interest is calculated at 7.5% p.a. simpleinterest.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.

Cost additional screen of computer = RM2500 Deposits = 10% Number of monthly payments = 24 Interest…

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.

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.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 19P

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Concept explainers

Regulation of Commercial Banks

The main function of any commercial bank is accepting deposits and lending money to borrowers. Apart from these two activities, commercial banks provide a host of other services to their customers, like discounting bills of exchange, acting as a custodian of a customer's will, and so on. In the absence of a proper regulatory framework or proper regulations in place, the commercial banks would have ended up charging exorbitant or varied rates of interest or service charges on the funds loaned by them or the services performed by them.

Question

Need help v) and vi).

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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