Question: JZ is purchasing a lorry for RM115,000. Financing options: 1. Bank loan: 6 years at 3.31%, monthly installment. 90% available based on the road price.

JZ is purchasing a lorry for RM115,000. Financing options:

1. Bank loan: 6 years at 3.31%, monthly installment. 90% available based on the road price. Road tax and takaful is RM5,175 to be paid out of pocket

2. Leasing: 6 years, monthly leasing payment is RM2,000, road tax and maintenance borned by lessor.

Question

1. Financing available is RM_________.

2. Total financing charge: RM___________

3. Monthly installment: RM___________

4. EAR: __________%

5. Total out of pocket payment is RM_________.

6. Option 2: Calculate the present value of the lease payment at 3.31% p.a.

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