Malinda bought a terrace house for RM185,000. She paid a 10% down payment and the balance was borrowed from a bank that charged interest at the rate of 3.5% compounded monthly. This loanwould be paid in monthly installements for 10 years. Find: a) the monthly payment. b) the total interest charged

Malinda bought a terrace house for RM185,000. She paid a 10% down payment and the balance was borrowed from a bank that charged interest at the rate of 3.5% compounded monthly. This loanwould be paid in monthly installements for 10 years. Find: a) the monthly payment. b) the total interest charged

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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4.
Malinda bought a terrace house for RM185,000. She paid a 10% down
payment and the balance was borrowed from a bank that charged interest at
the rate of 3.5% compounded monthly. This loanwould be paid in monthly
installements for 10 years.
Find:
a) the monthly payment.
b) the total interest charged

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