PAST YEAR EXAM PAPER (MAT 112)

Instalment Purchase

COLLECTIONS OF PAST YEAR EXAM PAPER

List of Formula:

2mI  k k  1 
1. r  2. OPB  R  k   I  
Bn  1  n n  1 

JUNE 2018
Part A - Question 5
Elena purchased a bedroom set at RM 3700 cash by instalment. She was charged an interest
of 15% based on reducing balance. She has to pay a down payment of RM 500 and equal
weekly payments for 1.5 years. Find the amount of interest charged by using the Constant
Ratio Formula. (5 marks)

Part B - Question 3
a) Suraya bought a machine with a cash price of RM 8 000. She paid a 10% down payment
and the balance was settled by making 36 monthly instalments. If the interest rate charged
was 6% per annum based on the original balance, find:
i) The instalment price of the machine. (5 marks)
ii) The monthly payment. (3 marks)

JANUARY 2018
Part A - Question 5
A newly married couple bought a stove by paying 30 monthly instalments of RM 60. The cash
price of the stove is RM 1230. However, the couple decides to settle the balance immediately
after paying for 2 years. How much should the couple pay using the Rule of 78? (5 marks)

Part B - Question 3
a) The cash price for a juicer is RM 3800. A buyer paid RM 500 as a down payment followed
by 18 monthly instalments. If the interest charged is 6% based on the reducing balance,
find:
i) The total interest and the monthly payment. (5 marks)
ii) The instalment price. (3 marks)
 PAST YEAR EXAM PAPER (MAT 112)
Instalment Purchase

MARCH 2017
Part A - Question 5
The cash price of a sofa set is RM 3500. The sofa set can be purchased through an instalment
plan by making 15 monthly payments. If the interest rate is 10% per annum on the reducing
balance, find the total interest charged by using the Constant Ratio Formula. (5 marks)

Part B - Question 3
a) Mr. Lim bought a computer by making a down payment of RM 500 and the balance was
settled by making 36 equal monthly payments. The interest charged was 4% based on the
original balance. If the cash price of the computer was RM 6000, find:
i) The monthly payment. (5 marks)
ii) The instalment price of the computer. (3 marks)

OCTOBER 2016
Part A - Question 6
Juliet purchased a house listed at RM 100 000 through a hire purchase agreement in which
she has to pay RM 10 000 as a down payment. The balance has to be repaid by making
monthly payments for 35 years. If the interest charged is 9.5% per annum on the reducing
balance, calculate the outstanding balance just after paying the 120th payment using the Rule
of 78. (5 marks)

Part B - Question 3
a) A retailer sells freezers at RM 4000 per unit. On the instalment plan, a down payment of
RM 550 is required and the balance is to be paid in 24 equal monthly payments at 8%
simple interest based on the original balance. Find:
i) The monthly payment. (3 marks)
ii) The instalment price of the freezer. (5 marks)

MARCH 2016
Part A - Question 6
A refrigerator was bought for RM 1485 through an instalment plan by making 30 weekly
payments. If the interest charged was RM 35.41, find the interest rate using constant ratio
formula. (5 marks)
 PAST YEAR EXAM PAPER (MAT 112)
Instalment Purchase

Part B - Question 3
a) Farra bought a LED television that cost RM 2500 by paying RM 125 every month for two
years.
i) Calculate the total interest charged. (3 marks)
ii) Compute the outstanding balance if she wants to settle all the payments immediately
after making the 18th payment. (5 marks)

SEPTEMBER 2015
Part A - Question 6
A refrigerator that cost RM 5000 was purchased by making 30 monthly payments of RM 200
each. Find the outstanding balance just after the 18th payment using the Rule of 78.
(5 marks)

Part B - Question 3
a) An air conditioning unit with a cash price of RM 3000 is purchased through an instalment
plan. The customer has to pay 10% down payment and the balance will be settled on a
monthly basis for 10 months. The dealer charges an interest of 10% per annum based on
reducing balance. By using the constant ratio formula, compute the interest charged.
(7 marks)

MARCH 2014
Question 3
c) After paying RM 400 as a down payment for a kitchen cabinet, Sharon paid RM 125 a
month for 2 years for the balance. The interest charged on the original balance was 4%.
i) Determine the cash price of the kitchen cabinet and the total interest paid. (6 marks)
ii) Calculate the amount of outstanding balance just after the 15th payment using the Rule
of 78. (4 marks)
iii) Find the interest rate using the constant ratio formula. (4 marks)

SEPTEMBER 2013
Question 3
c) The cash price of an electric stove is RM 4200. On an instalment plan, a 15% down
payment is required followed by monthly payments for 2 years. If the interest charged is
9% on the reducing balance, find the:
i) Interest charged using the Constant Ratio formula. (4 marks)
ii) Monthly payment. (2 marks)
 PAST YEAR EXAM PAPER (MAT 112)
Instalment Purchase

iii) Total amount a customer will eventually pay for the electric stove. (2 marks)
iv) Outstanding balance if the customer decides to settle the loan immediately after the 8th
payment (Use Rule of 78). (4 marks)

MARCH 2013
Question 3
c) Cheng bought a bedroom set at RM 2700 cash by instalment. He was charged an interest
of 15% based on the reducing balance. He has to pay a down payment of RM 500 and
equal monthly payments for 2 years. Find:
i) The monthly payment using the Constant Ratio formula. (6 marks)
ii) The instalment price. (2 marks)
iii) The amount of the outstanding balance just after the 18th payment using Rule of 78.
(4 marks)