There are SIX (6) questions in this section. Answer ALL questions in Microsoft Word.

Items

RM

Car loan

15 000

Personal computer purchase

7 298

Home property

210 000

Cash on hand

5 000

Bills outstanding:

Telephone

Electricity

190

720

Summon payment

900

Saving account

25 500

Car loan payment per month

950

House loan

57 000

Clothing

2 500

Stocks

3 000

Bonds

500

Balance in checking account

7 500

Furniture

5 000

Dividend received

1 200

1.Based on the financial information above, help Naz to:

a)Construct balance sheet for the year ended 31^stDecember 2020.(8 Marks)

b)Calculate current and debt ratio.(2 Marks)

2.Suppose you had RM 15,000 to invest for 15 year. You are deciding between a savings account with a 2% annual interest rate compounded semi-annually (alternative A) and one with a 2% annual interest rate compounded annually (alternative B). Show your calculation and choose the best alternative to invest in.(5 Marks)

3.You did a survey and found out that the price of new home today would cost you RM 275 000 and in 10 years' time, it will cost you around RM 447 9946.02. Find what is the interest rate for the new home purchase?(3 Marks)

4.What is the present value of RM 2575 perpetuity if the interest rate is 8%?(2 Marks)