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Assuming you have graduated and have been working for several years. You are planning to buy a double-storey link house in Bukit Mahkota built by
Assuming you have graduated and have been working for several years. You are planning to buy a double-storey link house in Bukit Mahkota built by the IOI developer which cost RM748,000 per unit for intermediate unit. You have saved some money and plan to use them as a down payment for the house that you intend to purchase. You intend to take up a loan to finance your purchase of the house for the balance of the purchase price.
- Calculate the amount of the down payment for the house you intend to purchase if you would like to make a 20% down payment.
- Calculate the amount of the loan you need to borrow from a financial institution.
- You intend to take up a loan for twenty years. Calculate your monthly installment if the bank charges you an interest rate of 4.5% per annum.
- After five years of buying the property, you decide to assess the cost of servicing the loan.
- In Ringgit terms, how much have you paid the lender (bank)?
- How much do you still owe on the property?
- How much interest have you paid to the lender?
- Fill up the following table for five years.
Month End | Beginning Principal | Annuity Payment | Interest Payment | Principal Payment | Ending Principal |
1 | |||||
2 | |||||
: | |||||
: | |||||
60 |
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