EXAMPLE 2:
Mrs. Wong bought a car costing RM 127 531.77 on credit with installment payments for 108 months. She has paid RM 12 835.77 as an advance. What is the monthly amount to be paid by Mrs. Wong?
SOLUTION:
Car price: RM 127 531.77
Advance payment: RM 12 853.77
Installment duration: 108 months
MATHEMATIC EQUATION:
\((\text{RM }127\,531.77\text{RM }12\,853.77)\div108\text{ months}=\text{RM }\Box\,/\text{ months}\)
Solve the operation in brackets first.
\(\text{RM }127\,531.77\text{RM }12\,835.77=\text{RM }114\,696.00\)
Substitute into the equation and solve.
\(\text{RM }114\,696.00\div108\text{ months}=\text{RM }1\,062.00\,/\text{ month}\)
Therefore, the monthly amount to be paid by Mrs. Wong is RM 1 062.00.
