INSTALLMENT PURCHASE 1. Elena purchased a bedroom set at RM 3700 cash by instalment. She was charged an interest of 15% based on reducing balance. She has to pay a down payment of RM 500 and equal weekly payments for 1.5 years. Find the amount of interest charged by using the Constant Ratio Formula. 2. Suraya bought a machine with a cash price of RM 8000. She paid a 10% down payment and the balance was settled by making 36 monthly instalments. If the interest rate charged was 6% per annum based on the original balance, find: a) The instalment price of the machine. b) The monthly payment. 3. A newly married couple bought a stove by paying 30 monthly instalments of RM 60. The cash price of the stove is RM 1230. However, the couple decides to settle the balance immediately after paying for 2 years. How much should the couple pay using the Rule of 78? 4. The cash price for a juicer is RM 3800. A buyer paid RM 500 as a down payment followed by 18 monthly instalments. If the interest charged is 6% based on reducing balance, find: a) The total interest and the monthly payment. b) The instalment price March 2017 5. The cash price of a sofa set is RM 3500. The sofa set can be purchased through an instalment plan by making 15 monthly payments. If the interest rate is 10% per annum on the reducing balance, find the total interest charged using the Constant Ratio Formula. 6. Mr. Lim bought a computer by making a down payment of RM 500 and the balance was settled by making 36 equal monthly payments. The interest charged was 4% based on the original balance. If the cash price of the computer was RM 6000, find: a) The monthly payment. b) The instalment price