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DBM5614
MATHEMATICS
TRIMESTER 2, 2020/2021

GROUP ASSIGNMENT

MATHEMATICS OF FINANCE

Lecture Section:

Name Student ID Marks

Leader
Members

DBM5614 MATHEMATICS TRI 2 2020/2021
PAGE
TABLE OF CONTENT: CONTENT

A. Car Loan
1. New Car
2. Used Car
3. Conclusion

B. PTPTN
1. Conventional Rate
2. Ujrah Rate
3. Conclusion

C. HOUSING
1. Monthly Liability Commitment
2. Housing Loan

D. MEETING/DISCUSSION
1. Content

E. CONCLUSION
1. Reflection
2. Suggestion

F. REFERENCE AND APPENDIX

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DBM5614 MATHEMATICS TRI 2 2020/2021

A. CAR LOAN [TOTAL: 16 MARKS]

You have just finished your diploma in MMU and decided to work for a few years before pursuing

your degree. In order to facilitate your commute to the workplace, you decided to buy a car. After

searching through the internet, you have 2 options:
Option 1 – buy a new car using car loan.
Option 2 – buy a used car using personal loan.

Find advertisement of a new car and a used car, then choose which bank will finance the purchase.

Make sure the type of loan is visible in the screenshot.

a) Calculate the monthly payment of your loan for each car. (3+3 marks)

NEW CAR INFO

Brand : Honda Model : City Variant : 1.5L S

Pricing

On The : RM76,100.00 Deposit : RM7,610.00 Loan : RM68,490.00
(10%) Amount
Road Price

Bank details

Bank Name : CIMB Bank Loan Period : 9 years Interest Rate : 2.49%

Monthly = (1 + )
Payment: = 68,490[1 + (0.0249)(9)]

= 83,838.61


= 12
83,838.609
= 12(9) = 776.28

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DBM5614 MATHEMATICS TRI 2 2020/2021
Model/Variant : City 1.5S Year : 2010
USED CAR INFO : RM34,300.00
Loan Amount
Brand : Honda

Pricing

Price : RM34,300.00

Bank details

Bank : HSBC Bank Loan Period : 5 years Interest Rate : 6.00%
Name

Monthly = (1 + )
Payment: = 34,300[1 + (0.06)(5)]

= 44,590


= 12
44,590
= 12(5) = 743.17

b) Calculate the total interest to be paid. (4 marks)
=
New Car = Used Car = 34,300(0.06)(5)
= 10,290.00
= 68,490(0.0249)(9)

= 15,348.61

c) Based on (a), which car will you buy and why? (2 marks)

d) Based on (b), which car will you buy and why? (2 marks)

e) After considering both the monthly payment and the total interest, which car will you buy?

Justify your final decision. (2 marks)

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DBM5614 MATHEMATICS TRI 2 2020/2021

B. PTPTN [TOTAL: 15 MARKS]

Once you have secured a job, you would like to start to pay for your PTPTN loan. At the moment,
the loan is subject to 3.00% per annum compounded monthly. However, there is an option to
migrate your loan to Ujrah loan.

a) Identify the type and amount of the interest rate for an Ujrah loan. (2 marks)

b) Calculate the monthly payment amount for both interest rates to be paid in 10 years period,

assuming you get a full loan of RM15,000 for the whole period of your diploma. (5 marks)

c) Then, calculate the total payment and total interest paid. (6 marks)

d) Which rate gives you lower monthly payment amount and how much interest you saved in

total? Show all necessary calculations. (2 marks)

Loan Type Conventional Loan Ujrah Loan

Loan Amount RM15,300 RM15,300

Interest Rate 3.00% (a)

Type of Interest Compounded Monthly (a)

Monthly payment, R (b) (b)

Total Interest Paid, I (c) (c)

Total Payment (c) (c)
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DBM5614 MATHEMATICS TRI 2 2020/2021

C. HOUSING LOAN [TOTAL: 10 MARKS]

The monthly payment of your loans; personal, car and housing loans are called monthly liability
commitments. Some financial experts recommend that the total monthly liability commitment
should not be more than 60% of your monthly income.
Assuming that you earn RM2,300 a month for your new job and your monthly liability
commitment consists of the car loan and the PTPTN loan (Ujrah), how much more loan can you
commit to?
If you are to follow the advice by the financial experts and you would like to buy a house, choose
a bank that will finance your house. What is the maximum price of the house that you can buy
over a 35 years period? Find a house for sale that is within your budget.

a) Calculate the maximum liability. (1 mark)
Maximum liability = 60% of salary =

b) Calculate the monthly liability, R. (4 marks)
R = Maximum liability – current liability

c) Maximum price of house, A. (5 marks)

A= R 1 − (1 + r/ n )−nt 
 r /n 
  =

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DBM5614 MATHEMATICS TRI 2 2020/2021

D. CONCLUSION/REFLECTION [TOTAL: 10 MARKS]

a) Discuss the differences between buying a car using a car loan and using a personal loan.
(2 marks)

b) What is the difference between simple interest and compound interest? (1 mark)

c) Elaborate your group opinion about surviving financially with a salary of RM2,300 and having
the monthly liability commitment as given from the scenarios in this assignment.
(2 marks)

d) What other monthly expenses will you have? (2 marks)

e) What did you get from this assignment? Any suggestion to do the assignment differently?
(3 marks)

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DBM5614 MATHEMATICS TRI 2 2020/2021

E. REFERENCE/APPENDIX [TOTAL: 15 MARKS]

1. List at least four (4) websites/links/references that you refer. (4 marks)

2. Attach the ALL the print screen/screenshot of car prices and bank’s interest rates in the

appendix and highlight your choice. Find a job advertisement that offers a salary of RM2,300

and above and attach the job advertisement as the last appendix. (7 marks)

3. Provide at least (4) meeting/discussion logs. (4 marks)

DISCUSSION LOG #1

Date: Time: Venue:

Attendance: Absent with excuse:

Absent without excuse:

Matters/Items Discussed:

Decision:

Evidence/Screenshot:

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DBM5614 MATHEMATICS TRI 2 2020/2021

Screenshot
Note: Highlight your chosen variant and interest rate.

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DBM5614 MATHEMATICS TRI 2 2020/2021

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DBM5614 MATHEMATICS TRI 2 2020/2021

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DBM5614 MATHEMATICS TRI 2 2020/2021

MARKING FORM

SECTION ITEMS MARKS SUBTOTAL CRITERIA

Format Cover page & table of content 2 4 According to
Language & neatness 2 lecturer

CONTENT

1. New car 3 Price 1, Loan 1,
2. Used car 3
3. Interest paid 4 Monthly 1
4. Decision 6
Price 1, Loan 1,

A 16 Monthly 1
Car Loan Subs 1, Simplify 1

B (x2)
PTPTN
Decision 1, Justify

1 (x2) Overall 2

R: Subs 1, Simplify

1, Ans 1

1. Conventional Rate 6 I: Subs 1, Simplify

1

T: Simplify 1

Interest 2,

15 R: Subs 1, Simplify

2. Ujrah Rate 7 1

I: Subs 1, Simplify

1

T: Simplify 1

3. Conclusion 2 Lower R 1,

5 Interest saved 1

5 ML: Ans 1
2
C 1. Liability 1 CL: Subs 1, Ans 1
Housing Loan 2. House price 2
2 10 MtL: Subs 1, Ans 1

Subs 3, Simplify 1,

Ans 1

D 1. Car loan vs Personal loan 10 According to
Conclusion/Reflection 2. Simple interest vs lecturer
Compound interest
3. Opinion

4. Other expenses

5.Recommendation/Suggestion 3

1. References 4 Minimum 4
2. Appendix websites
3. Meeting/Discussion
E 7 15 Total of 7
Reference/Appendix appendix

4 Minimum 4
meeting

GRAND TOTAL 70

Attach this marking form on the last page.

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