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QUESTION (1). Please show the calculation, thank you. Suppose you wish to borrow a RM30,000 from a bank now. The bank offers you a 5-year

QUESTION (1). Please show the calculation, thank you.

Suppose you wish to borrow a RM30,000 from a bank now. The bank offers you a 5-year fully amortised loan, with fixed monthly payments, at 7.8% per year interest, compounded monthly. It also offers you a 5-year interest-only loan, at 8.4% per year interest, compounded monthly. What is the monthly payment difference between the amortised loan and the interest-only loan? (5 marks)

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