a) Khatijah wishes second-hand van for her biscuit business. Bank Usahawan Berhad offers simple interest loan at 5% per year. Khatijah currently has a balance of at the Bank. The Bank requires Khatijah to maintain a compensating balance of 10% of the loan amount Required: What is the effective annual interest rate if she decided to borrow from Bank Usahawan? (10 marks) b) Fauziah requires RM80,000 to renovate her house in Petaling Jaya. She wishes to take up a one year loan from Bank Putra Jaya Berhad. The Bank requires Fauziah to maintain compensating balance of 20% of the loan amount. She currently has RM6,000 at the Bank. The Bank charges an annual interest rate of 4% for a one-year loan. Required: How much should Fauziah borrow and what is the effective annual (10 marks) nterest rate if she agreed to take up the loan? Question 4 (20 marks) Kilang Biskut Berhad, a manufacturer of traditional Malay biscuits in Seremban, is preparing monthly cash budgets for the month of July, August and September 2017. The following data are available from records of the company September August July RM RM RM 250,000 300,000 Sales 200,000 100,000 130,000 140,000 Raw materials purchases 55,000 45,000 Wages 40,000 30,000 Manufacturing overhead costs 30,000 0.000 40,000 60,000 20,000 Selling and administration The company has the following business policies: Collections of cash from customers are expected to be 70% of the sales in the month of sale and 30% in the month following the sale The company pays cash for 60% of the raw materials purchases in the month of purchase and the balance is due in the month following the purchase All other items besides these two are paid cash in the month they are incurred LIMKoKwING UNIVERSITY OF CREATIVE TECHNOLOGY RI MANAGEMENT AND GLOBALIZATION