Q5. A branded watch which is listed at RM1,800 cash can be purchased on an instalment purchase by making a 20% down payment. The balance has to be repaid by 18 monthly payments. The buyer has four (4) options to repay the balance Option Interest charged 1 RM200 2 8% per annum simple interest 3 10% per annum using Constant Ratio method 11% compounded monthly 4 Calculate (a) the instalment price for each option, (b) the monthly instalment for each option. (c) Which is the best option? Why? (d) Calculate the effective rate for Option 4