Answer to Question #145157 in Financial Math for A

Question

Hafiz wanted to buy a brand-new car. He could only afford to pay RM 5000 for a down payment and decided to take a loan to finance the balance of the 139770

Answer 1

Then let the loan be for 4 years at an annual rate of 10 %

find the annual payment amount

$S=\frac{L\times i}{1-\frac{1}{(1+i)^n}}=\frac{139770\times 0.1}{1-\frac{1}{(1+0.1)^4}}=\frac{13977}{0.316986545}=44093.35$

total loan amount:

$44093.35\times4=176373.4$