Irna borrowed RM50,000 for her education purposes from PITIPITI Bank. The payments are to be made on
Question:
Irna borrowed RM50,000 for her education purposes from PITIPITI Bank. The payments are to be made on an installment basis. The tenure of the loan is seven (7) years with 7 percent interest per annum. Compute the amount that Irna needs to pay at the end of each year.
2.Mr. Ninso wishes to have RM270,000 for his retirement funds twenty (20) years later with 6 percent per annum. Estimate the amount that he needs to save today to meet his goal.
3. Mr. Dinez plans to invest today, hoping that he can earn RM255,000 after fifteen (15) years. Estimate the annual payments that he needs to pay at the end of each period to achieve his objective. The rate of return that he is willing to receive is 8 percent per annum.
4.Fatin Af Bhd is planning to issue new preferred shares that pay a 6 percent dividend on the par value of RM100. The firm's preferred share is currently selling at a 10 percent discount from the current market price of RM95 per share. The floatation cost will be at 12 percent of par value. Calculate the cost involved if they choose to issue preferred shares.
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry