ASSIGNMENT 3 BUSS 1611 JUNE 20 Q2. A branded watch which is listed at RM1,800 cash can be purchased on an instalment purchase by making a 20% down payment. The balance has to be repaid by 18 monthly payments. The buyer has four (4) options to repay the balance. Option 1 2 3 4 Interest charged RM200 8% per annum simple interest 10% per annum using Constant Ratio method 11% compounded monthly Calculate (a) the instalment price for each option, (7 marks) (CLO2:PLO2:C2)(CLO2:PL07:02) (b) the monthly instalment for each option. (7 marks) (CLO2:PLO2:C2)(CLO2:PL07:C2) (c) Which is the best option? Why? (2 marks) (CLO2:PLO2:C2)(CLO2:PLO2:C2) (d) Calculate the effective rate for Option 4. (2 marks) (CLO2:PLO2:C2)(CLO2.PLO2:02) ASSIGNMENT 3 BUSS 1611 JUNE 20 Q2. A branded watch which is listed at RM1,800 cash can be purchased on an instalment purchase by making a 20% down payment. The balance has to be repaid by 18 monthly payments. The buyer has four (4) options to repay the balance. Option 1 2 3 4 Interest charged RM200 8% per annum simple interest 10% per annum using Constant Ratio method 11% compounded monthly Calculate (a) the instalment price for each option, (7 marks) (CLO2:PLO2:C2)(CLO2:PL07:02) (b) the monthly instalment for each option. (7 marks) (CLO2:PLO2:C2)(CLO2:PL07:C2) (c) Which is the best option? Why? (2 marks) (CLO2:PLO2:C2)(CLO2:PLO2:C2) (d) Calculate the effective rate for Option 4. (2 marks) (CLO2:PLO2:C2)(CLO2.PLO2:02)