Question
Kenneth is also thinking of buying a car costing $120,000 (including COE) as he is already spending about $1,000 a month on taxi, Grab and
Kenneth is also thinking of buying a car costing $120,000 (including COE) as he is already spending about $1,000 a month on taxi, Grab and Gojek. He reckons that he probably needs to just top up a bit more to pay for the monthly instalment. Moreover, he said the interest rate for car loan is very cheap. He is offered a simple flat rate of 2.3% for a loan of $84,000 for a period of 7 years.
(b) (i) Compute the monthly instalment of the car loan. (8 marks)
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
