BM4013 BUSINESS MATHEMATICS AND STATISTIC

ASSIGNMENT

NAME: NG SHI MIN

STUDENT ID: 19074681

COURSE: DIPLOMA IN ACCOUNTING

Introduction

This report will be discussed about the study of financial planning. This report will begin with a
career selection and an analysis of the benefit of the chosen job. The income will be decided and
planned for the purchase of the car. The expenses on the car’s loan will be determined and then
the house will be purchased. Lastly, a fixed deposit will be determined based on the balanced of
available income.

Jobs

The selected work field is sales job due to the interest in doing sales and dealing with people.
Besides that, the industry that I’m interested in is computer and information technology.
Information technology has become so advanced, and the industry has grown rapidly in recent
years, and there is a lot of growth potential in this industry. Therefore, the job that I selected
from the Job Street is consumable sales executive from Ricoh Malaysia SDN Bhd. Ricoh
company is one of the world leaders in digital office solutions since 1981 in both north American
and Europe countries. The company has powerful global network with large amount of
diversified customer data base, it also achieves the Global 500 companies in the world. The
company has product such as office printing, production printing, camera, projectors that selling
across over 200 countries around the world[ CITATION Ric19 \l 17417 ].

I choose this job is because they are hiring fresh graduates with candidate minimum education of
Diploma. The salary that they offer is between RM2500 to RM5000 with job scope such as
business development in equipment, sales service and responsible to sell other consumables
products. The benefits given by the company are medical, dental, loads, miscellaneous allowance
and additional 3% voluntary EPF contribution. The working hour as a full time employee is from
9am to 5pm, Monday to Friday. With the basic salary of RM2800 and the additional sales
commission of RM1000 per month, the monthly net income after minus the EPF contribution of
13% will be around RM3500. In order to buy car, part time job as promoter at supermarket with
RM100 per day on weekends will be participated. The income details are as following:

Description Amount
Basic Salary RM2800 per month
EPF contribution 13%, RM364
Commission RM1000 per month
Allowance / OT RM200 per month
Full Time Net Income RM3636 per month
Part Time Job Allowance RM800 per month
Total Income Per Month RM4436

Car purchase

After hard saving for 1 year by saving 80% of the net income, RM3500 per month for 12
months, the saving that acquired are RM42000. The car will be considered are the new local car,
new imported car, second hand used car and second hand imported car.

Car Model Perodua Axia1.0E Perodua Axia1.0G Toyota Yaris 1.5J Toyota Vios 1.5G
Color Red Black Black White
Engine Capacity 998cc 998cc 1496cc 1497cc
Year 2019 2015 2019 2015
Price RM 22,900 RM 16,888 RM 70,888 RM 41,888
CIMB interest 2.85% 4.45% 2.65% 4.00%
5 Year Installment RM 436 RM 344 RM 1338 RM 838
7 Year Installment RM 327 RM 263 RM 1000 RM 638
9 Year Installment RM 266 RM 219 RM 812 RM 527
Total 9Yr Interest RM 5,873 RM 6,763 RM 18,182 RM 16,776
Total 9Yr Finance RM 28,773 RM 23,651 RM 89,070 RM 58,664

After some research from these 4 different cars, the car that I will select is the new car domestic
car, Perodua Axia 1.0E[ CITATION Per19 \l 17417 ] . The reasons that I select the car are because it
is new and lower commitment for the purchase of new properties. The new car is selected
because the interest rate of second hand car are higher. There will be paying more interests if buy
second hand car. Besides that, by choosing new car will have the warranty on car and lower
maintenance fees because used car might have higher risk in maintenance cost. The simple
domestic car is selected because no high requirement for the specification as the car just use for
travel to work. The imported car is too high commitment and will cause when purchasing
property.

Property Purchasing Mortgage Loan

The property selected is Gaya Resort Homes, Bukit Rimau, Shah Alam with the property price of
RM356000. The property is serviced residential type with freehold tenure and residential land .
The property is 751 square feet and has 2 bedrooms 2 bathroom. The facility of the
condominium included swimming pool, gym, 24hours security, playground and more.

Property Price RM 356,000

Down payment, 10% RM 35,600 (pay from saving)
Loan Amount RM 320,400
Bank Selected Public Bank
Interest Rate for Mortgage 4.22% p.a.
Period 35 years
Monthly Installment RM 1,461 / month
Total 35 years Interest RM 293,319
Total Finance for House RM 613,719

Based on the monthly installment for property and monthly commitment for car loan

Total Commitment = RM 266 + RM 1,461 = RM 1,727

In order to apply mortgage loan, the DSR Ratio should be below 70%

DSR Ratio = Total Monthly Commitment / Total Net Income

= RM 1,727 / RM 4,436

= 38.9%

Therefore, the mortgage loan application has no problem.

The reason for me to purchase the property is because it is affordable and located near to my
working place. The 2 bedrooms and 2 bathrooms are suitable for small family and the apartment
has facilities that I can use after work. Besides that, the low property price that below RM400k,
in the future I could rent or sell it easier as it is more affordable for more people. The other
reason that I buy the property with low price is because of the low commitment and I will able to
buy higher value property in the next 10 years as my income continue to increase and the
availability of DSR.

Saving Fixed Deposit

The saving of fixed deposit with 20% of the net income, which is RM 887.20 for the next 7 years
in the bank for the planning of travelling. The fixed deposit rate per annum of each bank are as
follow: -

Tenure Maybank OCBC Hong Leong RHB Public HSBC

1 month 2.90% 2.65% 2.75% 2.95% 2.95% 2.75%
3 months 2.95% 2.75% 2.80% 3.00% 3.00% 2.85%
6 months 3.05% 2.90% 2.85% 3.05% 3.05% 2.85%
12months 3.10% 3.00% 2.85% 3.10% 3.10% 2.90%

From the comparison fixed deposit interest rate from all bank, the bank that I will choose to put
my fixed deposit are Maybank, RHB bank and Public bank because it has the highest interest
rate per annum.
Compounded MAYBANK

Monthly 12*7
2 . 9%

[( 1+
12
¿ RM887 . 2 2. 9%
12
¿ RM82517 . 86
) −1

]
Quarterly 4*7
2 . 95%
=RM887 . 2
[
1+(4
2. 95%
4
=RM27480 .53
) −1

]
Semi-annually 3 . 05% 2*7

=RM887 . 2
[
1+(2
3. 05%
2
=RM13730 .36
) −1

]
Annually 7

=RM887 . 2 [ (1+3. 1 %) −1
3. 1% ]
=RM6818 . 75
Compounded OCBC BANK

Monthly 12*7
2 .65%

[( 1+
12
¿ RM887 . 2 2. 65%
12
¿ RM81786 . 05
) −1

]
Quarterly 4*7
2 .75%
=RM887 . 2
[
1+(4
2. 75%
4
=RM27290 . 69
) −1

]
Semi-annually 2 . 9% 2*7

=RM887 . 2
[
1+(2
2. 9%
2
=RM13662 .15
) −1

]
Annually 7
(1+3 %) −1
Therefore, Public Bank will be my best choice with interest rate compounded monthly in fixed
deposit savings. The saving that I will get after 7 years will be RM984.10, where the amount
gain from interest is RM96.90.
Conclusion
In conclusion, from the full-time job salary from Ricoh company and the part time job, my salary
is able to afford buy for a car, a RM356000 property in Shah Alam where it is near to my
working place. Then I will able to make a small saving of fixed deposit in Maybank for the
future travelling fees. As my salary go up every year in the future, I will manage to have more
income and purchase a bigger house and car.