BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Lily purchase a RM800 refrigerator through an instalment plan. She have to pay the monthly payment for three years. The interest charge is RM150. What is the instalment price of the refrigerator?
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RM 650
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RM 950
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RM 1000
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RM 800
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Explanation:
Detailed explanation-1: -The equation to find the monthly payment for an installment loan is called the Equal Monthly Installment (EMI) formula. It is defined by the equation Monthly Payment = P (r(1+r)^n)/((1+r)^n-1).
Detailed explanation-2: -What are some examples of installment buying? Examples of installment buying would be a home, a car, or other large purchases that require financing, such as a laptop. It allows the purchaser to buy without paying the entire amount upfront.
Detailed explanation-3: -Installment = A 1 + ( 100 r ) n × r 100. Additional Information. In an installment scheme, the buyer pays more because in addition to installment a buyer has to pay interest on it monthly or yearly.
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