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QUESTION 4 Mr. Rayan is interested to purchase one unit apartment at IXORA that costs RM329,000. His plan is to pay 20 percent down
QUESTION 4 Mr. Rayan is interested to purchase one unit apartment at IXORA that costs RM329,000. His plan is to pay 20 percent down payment in cash and finance the balance over 25 years at 6.25 percent. Before he makes his final decision, he is seeking your advice on questions below to help him understand the time value of money concept. (You need to show the timeline) A. What is the total down payment and the balance that need to be financing? marks) B. What will be Mr. Rayan monthly mortgage payment? (2 (4 marks) C. What is the total payment that Mr. Rayan needs to pay to the bank? (2 marks) D. How much is the total interest charge by the bank? (2 marks)
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