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(Question 1) (a) i. Harris decided to make a RM30,000 down payment on a RM300,000 house. Compute the annual payment for the RM270,000 mortgage if

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(Question 1) (a) i. Harris decided to make a RM30,000 down payment on a RM300,000 house. Compute the annual payment for the RM270,000 mortgage if the loan is 4 percent per annum compounded annually for 35 years. (5 marks) ii. Linda is offered a retirement annuity with payments at the end of year of RM8,400 for a period of ten years. If the interest rate is 8 percent per annum, what lump sum should she take instead of the annuity? (5 marks) iii. Zack decided to deposit RM3,800 at the end of every year in a bank which pays interest 6 per annum compounded annually. What will be his accumulation at the end of 15 years? (5 marks) (b) Unsecured short-term financing is financing provided by the banks without imposing any form of collateral. In this case, the bank simply requires personal guarantees from the borrowers. Discuss FIVE (5) sources of short- term financing. (10 marks) 25 marks

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