Posted by **Jassie** on Saturday, December 1, 2012 at 10:18am.

The cash price of a speed boat is RM60,000. Under an installment plan, a buyer may pay a 30% down payment followed by monthly payments for 5 years. If the interest is 6% on the reducing balance, calculate

(i) the amount of interest using the constant ratio formula,

(ii) the monthly payment,

(iii) the installment price of the speed boat