QUESTION 1

Hanan buys a condominium for RM800,000 and she pays 10% down payment. The balance is to be paid in equal monthly instalments for 30 years. The first instalment is due one month after the date of purchase and the interest rate is 4.2% compounded monthly.

a) Calculate the monthly payment. [ans:RM3,520.92]

b) If Hanan fails to make the first three monthly payments, how much should she pay on the fourth payment to settle all the outstanding arrears? [ans:RM14,157.79]

c) Immediately after paying for 20 years, Hanan wants to settle the loan in full. How much is the amount that needs to be paid? [ans:RM344,518.20]

PLEASE DO IT ON A PAPER. I WILL APPRECIATE A CLEAR, EXPLAINED ANSWER, AND DO NOT FORGET TO SHOW EVERY STEP OF SOLVING THIS MATH, THANK YOU.