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    Chapter 3

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    Jen Nie
    This document discusses various topics related to saving, investing, and managing credit and debt. It provides examples and exercises on calculating returns on investments in shares and dividends, capital gains and losses, unit trusts, and real estate. It also discusses strategies like cost averaging. Additional sections cover credit and debt management, including examples of calculating loan balances, finance charges, and different methods for calculating interest. Exercises are provided to calculate savings and investment returns, loan repayments, and interest charged on loans.

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    © All Rights Reserved
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    Chapter 3

    Uploaded by

    Jen Nie
    120 views52 pages
    This document discusses various topics related to saving, investing, and managing credit and debt. It provides examples and exercises on calculating returns on investments in shares and dividends, capital gains and losses, unit trusts, and real estate. It also discusses strategies like cost averaging. Additional sections cover credit and debt management, including examples of calculating loan balances, finance charges, and different methods for calculating interest. Exercises are provided to calculate savings and investment returns, loan repayments, and interest charged on loans.

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    PT3

    Original Title

    Chapter 3 (1)

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    This document discusses various topics related to saving, investing, and managing credit and debt. It provides examples and exercises on calculating returns on investments in shares and dividends, capital gains and losses, unit trusts, and real estate. It also discusses strategies like cost averaging. Additional sections cover credit and debt management, including examples of calculating loan balances, finance charges, and different methods for calculating interest. Exercises are provided to calculate savings and investment returns, loan repayments, and interest charged on loans.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    120 views52 pages

    Chapter 3

    Uploaded by

    Jen Nie
    This document discusses various topics related to saving, investing, and managing credit and debt. It provides examples and exercises on calculating returns on investments in shares and dividends, capital gains and losses, unit trusts, and real estate. It also discusses strategies like cost averaging. Additional sections cover credit and debt management, including examples of calculating loan balances, finance charges, and different methods for calculating interest. Exercises are provided to calculate savings and investment returns, loan repayments, and interest charged on loans.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 52

    Chapter 3

    3.1 Saving And Investments


    EXERCISES:
    1.

    2.

    3.
    4.

    5.
    INVESTMENT
    INVESTMENTS IN SHARES
    Returns on Investment:
    • a. Dividens – COMPANY GIVES PROFITS WHEN BUSINESS EXPANDS
    • b. Bonus Shares – FREE BONUS
    • c. Capital gain / loss - SHARE PRICES INCREASE / DECREASE
    EXAMPLES:

    ROI: Total dividen + total gain/loss / the value of initial


    investment x 100 %

    Total loss: - RM900 + RM 240

    240 – 900
    INVESTMENTS IN UNIT TRUST
    EXAMPLES:
    INVESTMENTS IN REAL ESTATE
    Price that he sold The amount that he spent

    1. Total rent
    2. Capital gain = Price that he sold –
    Total expenses
    3. Total return = Total rent +Capital
    gain
    4. ROI: Total return / The money that
    he used to buy the house x 100 %
    EXERCISES:

    1. Total rent
    2. Capital gain = Price that
    he sold – Total expenses
    ( Debts + Cost that he
    paid + down payment)
    3. Total return = Total rent
    +Capital gain
    4. ROI: Total return / The
    money that he used to
    buy the house x 100 %
    2.

    3.

    1. Cost investment = 3000 x 1.50


    2. Dividen = 0.25 x 3000
    3. Capital gain = (1.75-1.5) x 3000
    4. ROI = dividen + capital gain /
    cost investment x 100 %
    COST AVERAGING STRATEGY
    TRY THIS OUT:
    3.2 CREDIT AND DEBT
    MANAGEMENT
    EXAMPLES:
    1. Balance :
    WHAT WILL BE THE ENDING BALANCE? RM 1500 – Rm 500 = Rm1000
    2. Finance Charge :
    4/11 to 27/11
    RM 1500 x 0.18 x 24/360 = RM 17.75
    28/11 until 9/12 :
    RM1000 x 0.18x 12/360 = RM6.41
    Total finance charge = RM 17.75 +RM
    6.41 = RM24.16
    Ending Balance: RM 1000 + RM 24.16
    = RM 1024.16
    EXERCISES
    1.

    2.
    3.
    4.

    1. 250 +50 = 300


    2. Bank charge 1% : 300 x
    0.01 = 3
    3. Total price for this bag =
    303SGD
    4. Final: RM891
    5.
    LOAN REPAYMENT AND
    INSTALLMENT

    1st month : 100 x 0.01 = RM 1 1st month : 100 x 0.01 = RM 1


    Balance : RM 100 – Rm 10 + RM 1 = Balance : RM 100 – Rm 10 + RM 1 =
    Rm 91 Rm 91

    2nd month: 100 x 0.01 = RM 1 2nd month: 91 x 0.01 = RM 0.91


    Balance RM 91 – RM10 + RM 1 = RM Balance RM 91 – RM10 + RM 0.91 =
    82 RM 81.91
    FLAT INTEREST
    INTEREST ON BALANCE
    EXERCISES
    1.

    2.

    3.
    MORE EXERCISES
    1.Mrs Ng saves RM3000 in a local bank with an interest of 4% per annum. What’s her total interest after 3 years.
    2.Encik Bakar has an amount of RM4500 in his bank. The bank provides an interest of 3% per annum. What’s his total savings
    after 2 years.
    3.Puan Farah has an amount of RM200 in her bank with an interest rate of 4.3% per annum and compounded every 4
    months. What’s her total savings after 2 years?
    4.Jeslyn is planning to buy a house in 2 years. She wants to invest RM120000 now and hopes to have RM 450000 of cash to
    buy the house. How much is the interest rate would she needs if her investment is compounded every 2 months?
    5.Puan Noraini Mitis deposits a certain amount of money into her savings account which provides an interest rate of 2% per
    annum and compounded quarterly. What is the initial deposit made by Puan Noraini Mitis if the money collected at the
    end of the fifth year is RM7 734.26?
    6.Puan Zain bought 500 share units of Syarikat Pelita Berhad at RM2.00 per unit. At the end of the year, Syarikat Pelita
    Berhad paid a dividend of 40 sen per unit to all its shareholders. The following year, Puan Zain sold all the shares held
    when the share price rose to RM2.30 per unit. Calculate the return on investment for Puan Zain.
    7.Encik Ismail takes a personal loan of RM10 000 from Bank Loyalt with an interest rate of 3% per annum. The repayment
    term is for 5 years. What is the monthly instalment payable by Encik Ismail?
    8.Mr Muran has borrowed RM15 000 from Bank Orchard for personal use. He will repay over 4 years with a monthly
    instalment of RM280. Calculate the yearly interest charged by the bank.
    9.Ms Kyle borrows from Bank Maju RMX with an interest rate of 5% per annum. The payback period is 8 years. If the
    monthly instalment paid is RM218.75, calculate the amount of money borrowed by Ms Kyle . .

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