Professional Documents
Culture Documents
a) Suggest the best loan amount for Mr. Rashid. Give three reasons for your
suggestion.
Reasons:
• Moderate interest
• To avoid overspend
b) How much will Mr. Rashid have paid on his mortgage at the end of his 10
years if he pays on flat scale/rate?
Interest = PRT/100
= RM25 600
c) How much more than the mortgage amount will he have paid based on the
above calculation.
Reasons:
e) Show how Mr. Rashid can compute the portion of his monthly payment that is
used for paying interest and principal in the first two months for this sliding
scale scheme.
First month:
Interest = PRT/100
=RM 213.33
• Principal = RM 266.67
• Interest = RM 213.33
Second month:
=RM 211.56
Monthly payment:
• Principal = RM 268.44
• Interest = RM 211.56
principal
. interest
second month
principal
interest