Question 1 A). A lump-sum loan of RM15,000 is needed by you to start a new business. You have obtained a SBA loan with 10% interest per year to pay for past business. But your friend has advised you to apply for a Microloans charging only 7% interest per year. If the loan will be repaid in full in five years, what is the difference in total interest accumulated by these two types of loans? What would you use the saving for and give a justification based on the current market value. B) Tan borrows some money to produce an engineering prototype. The banker allows her to defer payments for 12 months, and Tan makes 60 end-of-month payments thereafter. If the original loan is for RM* and interest in 0.75% per month on the unpaid balance, how much will Tan's payment be? (amount 17157794) C) The heat loss through the walls of a brick factory is estimated to cost $3,000 next year. A salesperson from PGF Insulation Sdn Bhd told you, as the factory engineer, that the insertion of $18,000 worth of fiberglass into the wall structure could help to reduce the heat loss by 80%. If the cost of heat loss increases by $200 per year (uniform gradient) after the next year and the owner of the factory plans to keep the factory for 15 more years, what would you recommend if the interest rate is 10% per year? (Hint: Calculate the present equivalent value of the savings) Question 1 A). A lump-sum loan of RM15,000 is needed by you to start a new business. You have obtained a SBA loan with 10% interest per year to pay for past business. But your friend has advised you to apply for a Microloans charging only 7% interest per year. If the loan will be repaid in full in five years, what is the difference in total interest accumulated by these two types of loans? What would you use the saving for and give a justification based on the current market value. B) Tan borrows some money to produce an engineering prototype. The banker allows her to defer payments for 12 months, and Tan makes 60 end-of-month payments thereafter. If the original loan is for RM* and interest in 0.75% per month on the unpaid balance, how much will Tan's payment be? (amount 17157794) C) The heat loss through the walls of a brick factory is estimated to cost $3,000 next year. A salesperson from PGF Insulation Sdn Bhd told you, as the factory engineer, that the insertion of $18,000 worth of fiberglass into the wall structure could help to reduce the heat loss by 80%. If the cost of heat loss increases by $200 per year (uniform gradient) after the next year and the owner of the factory plans to keep the factory for 15 more years, what would you recommend if the interest rate is 10% per year? (Hint: Calculate the present equivalent value of the savings)
