Answer to Question #245038 in Financial Math for mai

Question

Mr. Ezad takes an interest free loan to buy a computer. He repays the loan in monthly

instalments. For the first month, he repays RM110. For the second month, he repays

RM160. He repays RM50 more every month until the loan is completely settled. If his

final monthly instalments is RM860, find

a) The number of months it takes to settle the loan

b) The amount of the loan

Answer 1

1st RM is 110

2nd RM is 160

RM 50 more till completely settled .

Final RM is 860

So.

1. 110

2. 160

3. 210

4. 260

5. 310

6. 360

7.410

8.460

9. 510

10.560

11. 610

12. 660

13.710

14. 760

15. 810

16. 860

So we get the number of months to be 16.

Finding the amount of the loan we sum

So: 110+160+210+260+310+360+410+460+510+560+610+660+710+760+810+860$=$ 7760

So the answer is RM 7760