1. Diana bought a RM5,888 karaoke set on an instalment basis in which she made a RM888 down payment. To settle the balance, she has to pay RM1,000 every month for the principal payment plus interest of 1% per month on any unpaid balance. Construct a repayment schedule to show her monthly payments.

2.A man purchased a car selling for RM12,750 by making instalment payments. If he was charged 4% based on the reducing balance and the total interest paid was RM1,041.25, calculate the number of monthly payments he had made using the Constant Ratio formula.

3.Nasha receives a promissory note dated 10 February 2018 with a simple interest rate of 6.5% per annum. The note will mature on 10 June 2018. After she keeps the note for 70 days, she sells the note to a bank at a discount rate of 7% and receives proceeds of RM4,456.25. Find:

a) The term of the note.

b) The maturity value.

c) The face value.

d) The amount of interest Nasha receives.

Answer rating: 100% (QA)

Repayment Schedule for Dianas Karaoke Set Month Beginning Balance RM Principal Payment RM Interest 1 ... View the full answer