Assuming you have graduated and have been working for several years. You are planning to buy a house that built by MahSing developer. You have saved some money and plan to use them as a down payment. You intend to apply for 35 years loan to finance your purchase of the house for the balance of the purchase price.

(a). Brief the detail of the house (type, location, price, etc) and reason you want to purchase the house.

. (3 marks)

(b). Calculate the amount of the down payment for the house you intend to purchase if you would like to make 10 percent down payment.

(3 marks)

(c). You have been approach by the bank and provided the following offers:

Bank	Interest rate (% p.a.)	Maximum tenure (year)	Maximum Margin (%)	Lock in Period (Year)
Standard Chartered	4.50	35	100	0
Bank of China	2.85	35	80	3
HSBC	3.74	35	90	0
Maybank	3.25	35	85	3
CIMB Bank	3.10	35	90	3
RHB Bank	3.74	30	90	3
Bank Rakyat	3.18	30	90	5

1. Which bank do you prefer to take up the loan. Justify.

(3 marks)

2. Based on your answer (i), calculate your monthly installment to the bank.

(4 marks)

(d). After 10 years of buying the property, you decide to assess the cost of servicing the loan.

1. Fill up the monthly amortization table for 10 years by using Excel. [Hint: copy and paste your answer in below table]

Month	Beginning Principal	Annuity Payment	Interest Payment	Principal Payment	Ending Principal
1
2
:
:
120

(24 marks)

ii. Based on your answer above d(i), answer the following:

a. In Ringgit terms, how much have you paid to the respective bank?

(2 marks)

b. How much do you still owe on the property?

(2 marks)

c. How much total interest have you paid to the respective bank?

(3 marks)

d. How much total principal amount have you paid to the respective bank?

(3 marks)

e. Based on your observation from month 1 until 120, discuss on annuity payment specifically on interest and principal payment.

(3 marks)

im not sure if the top one is link to d) part so i send the whole question

I do not know how to do the d)i.

im going to send d)ii. a,b,c later because it said only one question i believe so.