Question

ESTION 2 115 MARKS a) Mr. Azman, owner of a small business borrowed RM75,000 with an agreement to repay the loan with quarterly payments over a 5-year time period. If the interest rate is 12% per year compounded quarterly, how much is his loan payment for cach quarter? (10 Marks) b) A credit card issued by Bank Kimia Tech carries a nominal rate of 18% or 1.5% per month. What would be the total effective cost of borrowing RM6000 after 1 year, should the interest is compounded monthly? (5 Marks) QUESTION 3 120 MARKS! A design process consultant company is to analyse and evaluate two process equipment facilities, with the projected life of each facility being 10 years. The cash flows are in Table 1.

Answer 1

Payment 'is guatey'y : 35000 p.-pycsen.FLOchh u9れece 75000 χ (0.03) ( 1+0·03 O. 806 5041-177 Rm tor each uasdy vill be Rm sau 504).18

pa RM 6000 Borno amount effective amount arhr ene year P6000 +013 Но f it idas Compa a man.hly 18 month/ mth 1+o.oi5] p = 6000 comgounde d Pabue