Luqman took a loan from First Nasional Bank that charged interest of 4% compounded monthly. He must pay RM1,000 each month for 15 years to settle the loan.
i) Find the amount of the loan.
ii) If Luqman failed to pay the first 3 monthly payments, find the amount he must pay on the 4th payment to settle the outstanding payments.

Answer rating: 100% (QA)

Answer i To find the amount of the loan we can use the formula for the present value of a... View the full answer