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sineoko [7]
3 years ago
15

A man purchased a car selling for RM12,750 by making instalment payments. If he was charged 4% based on the reducing balance and

the total interest paid was RM1,041.25, calculate the number of monthly payments he had made using the Constant Ratio formula.
Mathematics
1 answer:
a_sh-v [17]3 years ago
7 0

Answer:

48 months

Step-by-step explanation:

Cost of car = RM12,750

interest charged = 4% = 0.04

total interest paid = RM1,041.25

Now,

Using the Constant Ratio formula

r = \frac{24\times\textup{i}}{\textup{P(n+1)}}

here,

i is the interest paid

P is the principle

n is the number of monthly installments

r is the interest rate

on substituting the respective values, we get

0.04 = \frac{24\times\textup{1041.25}}{\textup{12,750(n+1)}}

or

n + 1 = 49

or

n = 48 months

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