You are in your final semester in City University Malaysia and will be graduating soon. You are planning to return to your hometown in Kota Samarahan, Sarawak. You owned a motorcycle and you are thinking of selling it after your Credit Management final exam ended prior returning to Sarawak. The selling price is RM2,400.

One of your juniors, Jay, is interested to buy the motorcycle from you. She is now in her third semester and currently receives scholarship from a Maybank. Should you agree to sell the motorcycle to Jay, she will be paying you RM400 for the down payment, The remaining balance will be paid in ten equal payments, and will be deposited to your account at the end of each month.

You knew Jay very well. She is a very hardworking person and manages her expenses wisely. She came from a poor family. Her father is selling fried bananas and is helped by her mother. Jay will be sending her monthly scholarship money to her parents monthly to ease their burden. Jay has eight siblings and she is the eldest. The youngest sister of Jay is five months old. Jay also sells snacks and pastries at her inasis at night in order to earn extra pocket money, Should Jay face any financial difficulties, she will be fasting to cut her daily expenses.

Later in the afternoon, your best friend Sham met you and she mentioned her interest in buying your motorcycle at a lower price, which is at RM1800. Sham is willing to pay you the motorcycle price in cash in one lump sum payment.

Using your credit management skills, decide which of them that you should choose. Jay or Sham. State your reasons.

(15 marks)