Jason wanted to buy a brand-new car. He could only afford to pay RM 6000 for a down payment and decided to take a loan to finance the balance of the 10000 amount. Bank A offered him an interest rate of 6.8% compounded quarterly for the first two years with no loan repayment and an interest rate of 9.0% compounded quarterly thereafter. After two years, he made level loan repayments at the end of each month to fully pay the loan for a certain period. 

Calculate the monthly repayment amount needed to pay off the loan and construct the loan schedule for the price of the car with the loan tenure 9 years. 

(a) Calculate the total interest paid on the loan. 

(b) Calculate the monthly repayment amount if Jason paid RM 650 per month for the first two years.

Answer rating: 100% (QA)

The following is the amount that will be outstanding after giving down payment Nw let ... View the full answer