The cash price of a handphone is RM3,500. On an instalment plan, RM500 is required as a down payment followed by monthly payments for 2 years. If the interest rate charged is 7% on the reducing balance, find the interest charged using the Constant Ratio formula. i) ii) the monthly payment. iii) the instalment price of the handphone. 11

The cash price of a handphone is RM3,500. On an instalment plan, RM500 is required as a down payment followed by monthly payments for 2 years. If the interest rate charged is 7% on the reducing balance, find the interest charged using the Constant Ratio formula. i) ii) the monthly payment. iii) the instalment price of the handphone. 11

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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