Question

Mr.Solomon wants to make a personal loan of RM50,000 from a bank with an interest rate of 3% per annum on the balance.The repayment period is 9 years while the monthly installment is RM 600. What is the amount of interest payable by Mr.Solomon for the first two months?​

Answer 1

The amount of interest payable by Mr.Solomon for the first two months is RM248.81.

Step-by-step explanation:

To calculate the amount of interest payable by Mr. Solomon for the first two months, we first need to calculate the loan balance after the first month and then after the second month.

First, we calculate the interest for the first month:

Interest for the first month = Loan balance * Monthly interest rate = RM50,000 * (3%/12) = RM125

So, the loan balance after the first month = Loan balance + Interest - Monthly installment = RM50,000 + RM125 - RM600 = RM49,525

Next, we calculate the interest for the second month:

Interest for the second month = Loan balance * Monthly interest rate = RM49,525 * (3%/12) = RM123.81

Therefore, the amount of interest payable by Mr. Solomon for the first two months is RM125 + RM123.81 = RM248.81.