To finance the expansion of your business, you borrowed RM 120,000 at a 7.8%

p.a. nominal rate of interest to be repaid over seven years. The loan is amortised into eighty four equal end-of-month payments.)

1. Kirakan setiap pembayaran pinjaman akhir bulan.

(Calculate each end-of-month loan payment.)

(3 markah / marks)

2. Berdasarkan kerja anda atas jadual pelunasan, berapakah jumlah prinsipal dan faedah yang akan dibayar oleh syarikat anda setelah pembayaran dibuat untuk tiga bulan yang pertama?

(Based on your working on an amortisation table, how much principal and interest would have your company paid after the first three months of payments?)

(8 markah / marks)

3. Berapakah jumlah faedah tambahan jika anda memilih pinjaman berjangka 10 tahun?

(How much extra interest in total if you choose a term loan of 10 years?)

(4 markah / marks)

4. Terangkan mengapa bahagian faedah setiap pembayaran menurun dengan berlalunya masa.

(Explain why the interest portion of each payment declines with the passage of time.)