A high‐speed motorbike was bought at RM 80,000. 10% down payment need to be made and the balance was financed by the bank at an interest rate of 2.2% compounded monthly. The loan is to be repaid over 7 years

a) How much is the balance that was financed by the bank?

b) What is the formula that needs to use to find the monthly payment for the loan?

c) How much is the monthly payment for the loan?

d) Find the total interest charged

e) If the first three monthly payments fail to pay, find the amount to be paid on the 4th payment to keep the payment up to date

f) Find the outstanding balance if the loan is settled immediately after the 80th payment.

Answer rating: 100% (QA)

Solution a How much is the balance that was financed by the bank Bank fina... View the full answer