QUESTION (1).

Suppose you wish to borrow a RM30,000 from a bank now. The bank offers you a 5-year fully amortised loan, with fixed monthly payments, at 7.8% per year interest, compounded monthly. It also offers you a 5-year interest-only loan, at 8.4% per year interest, compounded monthly. What is the monthly payment difference between the amortised loan and the interest-only loan?

QUESTION (2).

HYD company Bhd is about to prepare a monthly cash budget for the upcoming 3 months (from January to March 2020). The following transactions are recorded:

• About 60% of sales are collected 1 month after the sale and the remainder is collected in the second month following the sale.
• The company purchases are 80% of future sales forecasted. These are made 2 months in advance of expected sales.
• Payments for these purchases are made in the next month after purchase.
• Other expenses such as monthly wages and salaries are estimated at 5% of monthly forecast sales.
• You are required to complete the 3-month (January, February, and March) cash budget below for HYD company. Note: Provide answers ONLY for coloured boxes A to X

	November	December	January	February	March	April	May
Sales	50,000	60,000	70,000	85,000	98,000	100,000	110,000
Purchases	56,000	68,000	A	I	Q
Cash receipts / collections
Sales collected after one month			B	J	R
Sales collected after two months			C	K	S
Total cash receipts			D	L	T
Cash disbursements
Payments for purchases			E	M	U
Wages and Salaries			F	N	V
Total cash disbursements			G	O	W
Net change in cash			H	P	X

QUESTION (3).

ABC company Bhd provides the following information in respect of its 3-month cash budget for the year 2019 as shown in the table below.

• ABC company Bhd currently has a cash balance of RM40,000 and intends to maintain a minimum cash balance of RM20,000 each month.
• The company can borrow at the beginning of the month in which the funds are needed to maintain the minimum cash balance and the interest on loan is 24% per year. The interest on outstanding loan is paid in the month that follows the month in which the loan is obtained.
• You are required to complete the 3-month (October, November, and December) cash budget table for ABC company. Note: Provide answers ONLY for coloured boxes A to N

	Month	October	November	December
1	Beginning cash balance	RM40,000	E	J
2	Net Change in cash for the period	(RM40,200)	RM8,604	RM12,240
3	New financing needed	A	F	K
4	Interest on loan	B	G	L
5	Loan repayment	C	H	M
6	Ending cash balance	D	I	N
7	Minimum cash balance	(RM20,000)	(RM20,000)	(RM20,000)

THIS SUBJECT IS ISLAMIC INVESTMENT

I HAVE ONE HOUR TO ANSWER PLEASE KEEP THE TIME