Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please answer question b only QUESTION 1 (15 Marks) On 1 March 2022, Jerami Sdn. Bhd. applied for bank loan for RM5 million. The application
please answer question b only
QUESTION 1 (15 Marks) On 1 March 2022, Jerami Sdn. Bhd. applied for bank loan for RM5 million. The application was approved on 1 April 2022. The bank loan is payable in 5 years' time and charges annual interest rate of 5%, simple interest, with interest paid at the end of each month. The bank uses 360 -day year. Required: (a) Compute the interest, Jerami Sdn. Bhd. has to pay in 30-day month. Show your workings. (2 Marks) (b) If the bank used 365-day year, compute the interest, Jerami Sdn. Bhd. has to pay in 30day month. Show your workings. Subsequently based on your answer in (a), which method of interest calculation ie 360 -day year or 365 -day year which bank will use to calculate interest and justify why. (3 Marks) (c) The bank charges interest on the balance of outstanding loan at the end of each month starting 30 April 2022 . The loan is to be repaid in 60 equal payments over 5 years loan term. (i) Compute the monthly instalment payment. Show your workings. (ii) Compute the total interest paid on the loan over the 5 years period. Show your workingsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started