QUESTION 1

Ziyad bought a car for RM198,000. He made a 10% down payment and financed the balance through a bank for 9 years. The interest rate charged was 4.5% compounded monthly.

a) Calculate the monthly payment and the total interest charged

b) If Ziyad missed the first 4 monthly payments, how much should he pay on the 5th instalment to keep his payments up to date?

QUESTION 2

The net price of an item after trade discounts of 15% and 8% was RM1,955. Find:

a) the list price

b) the single discount rate that is equivalent to the chain discounts given

c) the amount of cash discount received and the total amount paid if the invoice has cash discount terms of 5/7, n/30 and is paid 4 days after the date of the invoice.