Question

Question 4 (Soalan 47 (C5, CO2, PO12) UNIMAP alumni. Shamsul wants to start a business that requires him to have RMI as the capital expenditure. He approaches 2 hanks to know about their financing scheme. Da A and Bank B both has the same tenure of years and interest rate at 10%. The only die is that Bank A loan charge on a simple interest and Bank B loan charge on a compound interest. m , seorang alumni UniMAP ingin memulakan pera wang memerlukan beliau mempunya moda permulaan sebanyak RM100,000,00 Beliaw menghubunal 2 buah bank tuk mengetahu mengenai pembiayaan mereka lait Bank A dan Bank R kedua-dua bank tersebut mempunyai tempoh pinjaman mo Tahun dan kadar faedah sebanyak 10X Perbezaan ialah Bank A mengenakan faedah mudah terhadap pinyaman berbanding Bank B yang mengenakan kadar faedah secara komput) For each bank, evaluate the followings: Nilaikan perkara berikut untuk setiap bank] (i) The annual interest. [Jumlah faedah tahunan) Total amount due after 5 years. Jumlah bayaran balik selepas 5 tahun) (iii) Illustrate the cash flow diagram for Bank A and Bank B. (Gambarkan gambarajah aliran tunai bagi Bank A dan Bank B.) (iv) Determine which bank offers a better deal. Tentukan bank manakah yang menawarkan tawaran yang lebih baik) (20 Marks/ Markah)

Answer 1

Working Notes:

1.Table showing simple interest calculations:

Year	Principal	Calculations	Interest
0	100000	-	-
1	-	100000×0.10	10000
2	-	100000×0.10	10000
3	-	100000×0.10	10000
4	-	100000×0.10	10000
5	-	100000×0.10	10000

2. Table showing compound interest calculations:

Year	Principal	Calculations	Interest
0	100000	-	-
1	-	100000×1.1	10000
2	-	110000×1.1	12100
3	-	121000×1.1	12100
4	-	133100×1.1	13310
5	-	146410×1.1	14641

Table showing answers:

	Bank A	Bank B
(i)	10000	working note 2.
(ii)	150000	161051
(iii)	RM Outflows 100000 Inflows 150000 Net inflows 50000	RM Outflows 100000 Inflows 161051 Net Inflows 61051
(iv)	Bank A will be more beneficial to Shumsal as outflow to Shamsul will be less as compared to Bank B.