Question

The hypothetical finance ltd has structured a hire-purchase deal.The required to make a down payment of 20 percent of the investment cost.The hire term is four years with quarterly payment in advance . The flat rate of interest is 13 percent. The finance company would charge a front-ended documentation and service fee and rebate for prompt payment@ 0.5 percent and 1 percent of investment outlay respectively. assuming after paying 24th, installment, a hirer wishes the purchase option,what is the interest rebate according to (i) actuarial method (ii) rupe of 78 method and. (iii) SLM