please answer question c (i and ii) only QUESTION 1 (15 Marks) On 1...
50.1K
Verified Solution
Link Copied!
Question
Accounting
please answer question c (i and ii) only
QUESTION 1 (15 Marks) On 1 March 2022, Jerami Sdn. Bhd. applied for bank loan for RM5 million. The application was approved on 1 April 2022. The bank loan is payable in 5 years' time and charges annual interest rate of 5%, simple interest, with interest paid at the end of each month. The bank uses 360 -day year. Required: (a) Compute the interest, Jerami Sdn. Bhd. has to pay in 30-day month. Show your workings. (2 Marks) (b) If the bank used 365-day year, compute the interest, Jerami Sdn. Bhd. has to pay in 30day month. Show your workings. Subsequently based on your answer in (a), which method of interest calculation ie 360 -day year or 365 -day year which bank will use to calculate interest and justify why. (3 Marks) (c) The bank charges interest on the balance of outstanding loan at the end of each month starting 30 April 2022 . The loan is to be repaid in 60 equal payments over 5 years loan term. (i) Compute the monthly instalment payment. Show your workings. (ii) Compute the total interest paid on the loan over the 5 years period. Show your workings
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
