Eric works as an account executive in Kuala Lumpur. He plans to buy a Myvi car on a hire purchase agreement. The cash price of the car is RM45,000. He is required to pay a deposit of 10% and pay the remaining loan amount off for 60 months at an interest rate of 5% per annum.

 

i) What is the hire purchase loan amount?

 

ii) How much is the total interest charged?

iii) How much is the total loan amount?

iv)  Calculate the monthly instalment that Eric needs to pay.