CONFIDENTIAL 1 BA/JUL 2021/ FIN533
FACULTY OF BUSINESS AND MANAGEMENT
FINAL ASSESSMENT
COURSE : PERSONAL FINANCIAL PLANNING
COURSE CODE : FIN533
EXAMINATION : JULY 2021
TIME : 3 HOURS
PLATFORM : UFUTURE/CLASSROOM
INSTRUCTIONS TO CANDIDATES
1. This question paper consists of two (2) parts: PART A (MCQ 25 Questions)
PART B (5 Questions)
2. Answer ALL questions from PART A (in Google Form) and ALL questions from PART B.
3. Part A: mark one box only to indicate the answer you consider correct for each question.
4. Part B: You may create a table from Microsoft office (Word/Excel) and attach the file. Make
sure to answer and attach the file accordingly based on the question given.
5. Answer ALL questions in English.
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO
This examination paper consists of 5 printed pages
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CONFIDENTIAL 2 BA/JUL 2021/ FIN533
PART B:
QUESTION 1
Last month, Harun was delighted to receive news on the birth of his twin girls but the good
news was shattered when he was told that his wife, Salmah, was diagnosed with acute
pulmonary embolism and was immediately transferred to the intensive care unit at Kuantan
Medical Center. She stayed for 3 days in the ICU and was transferred to normal ward
another 7 days. However, Harun was relieved since he knew that his wife, Salmah, had
Prudential insurance policy bought earlier. Upon discharged she received hospital bill and
was curious to know the amount that she has to pay compared to the amount covered by
Prudential. Below are terms of Salmah’s comprehensive major medical policy.
Item Insurance Coverage Hospital Bill
Embolectomy RM8,000 scheduled payment RM12,500
(Surgery)
Physician (doctor) RM3,000 RM4,000
Hospital Room RM250 per day with maximum RM400 per day for ICU
RM5,600 per year treatment and RM300 per
day for normal ward
Medicines & CT scan Reasonable amount paid in full RM6,510
Insurance premium RM3,000 per year
Calculate the total medical cost, the amount covered by the insurance policy and Salmah’s
share of the cost of her treatment (excluding the yearly premium). Discuss and comment on
whether it is a good decision to pay premium of RM3,000 per year.
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CONFIDENTIAL 3 BA/JUL 2021/ FIN533
ANSWER: QUESTION 1
PLAN INSURANCE HOSPITAL INSURANCE SALMAH’S
COVERAGE BILL (RM) COMPANY SHARE (RM)
POLICY (RM) PAID (RM)
Embolectomy RM8,000 scheduled RM12,500 RM8,000 RM4,500
(Surgery) payment
Physician RM3,000 RM4,000 RM3,000 RM1,000
(doctor)
Hospital Room RM250 per day with RM400 per day RM2,500 RM800
maximum RM5,600 for ICU
per year treatment and
RM300 per day
for normal ward
Medicines & Reasonable RM6,510 RM6,510 -
CT scan amount paid in full
TOTAL (RM) RM20,010 RM6,300
• Yes. It is a good decision to pay premium of RM3,000 per year because Salmah only
need to pay for RM6,300 because the insurance company has paid most of the hospital bill.
(10 marks)
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CONFIDENTIAL 4 BA/JUL 2021/ FIN533
QUESTION 2
Fattah is charged RM15,000 for his medical eye treatment that he received from Southern
Medical Centre. He intended to withdraw from his EPF Account 2 to pay for the medical
expenses. His total EPF savings in Account 2 was RM350,000 but he has much earlier
submitted an application for withdrawal to purchase a condominium. He purchased the
condominium for RM280,000 and obtained a housing loan for RM120,000. Thus, how much
can he withdraw from his Account 2, given that paying medical expenses is his first priority
and what will be the balance of his EPF Account 2 be then?
Meanwhile, his wife Madam Fazzura is planning to buy an apartment for investment
purposes. The price of the apartment was RM130,000. She obtained 95 percent financing
from the bank. She had RM30,000 in her Account 2. She is also planning to withdraw her
EPF to pay for her MBA fees which amounted to RM 16,000. How much can she withdraw
from her Account 2, given that paying her MBA fees is her first priority and what will be the
balance of her EPF Account 2 be then?
(10 marks)
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ANSWER: QUESTION 2
FATTAH
DETAILS RM
Medical eye treatment 15 000
Condominium price 280 000
• Housing loan 120 000
= The differences = 160 000
+ 10% of house price 28 000
Amount eligible for withdrawal 203 000
Balance in account 2 350 000
Balance in account 2 after withdrawal given 335 000
that paying medical expenses is his first
priority.
FAZZURA
DETAILS RM
Apartment price 130 000
• 95% financing 123 500
= The differences = 6 500
+ 10% of house price 13 000
MBA fees 16 000
Amount eligible for withdrawal 35 500
Balance in account 2 30 000
Balance in account 2 after withdrawal given 14 000
that paying her MBA fees is her first priority.
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CONFIDENTIAL 6 BA/JUL 2021/ FIN533
QUESTION 3
It is known that members can withdraw money from Account 1 of their Employees Provident
Fund (EPF) for investment activities. Miss Nufa plans to make investment withdrawal from
her Account 1 to be invested in a unit trust fund approved by EPF. Her balance in Account 1
is RM77,000 and she plans to have four (4) withdrawals. Also, she plans to invest for every
three (3) months. Given that Miss Nufa’s basic savings is RM67,000, illustrate the calculation
pertaining to the amount she can withdraw for each withdrawal.
(10 marks)
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CONFIDENTIAL 7 BA/JUL 2021/ FIN533
ANSWER: QUESTION 3
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CONFIDENTIAL 8 BA/JUL 2021/ FIN533
QUESTION 4
Maryam has just received her credit card statement for the period covering 15th January to
14th February 2021. On 5th January 2021, she has bought a new hand phone of RM3,600
using zero interest payment plan for 12 months. During the purchase date, the first payment
had been affected and the subsequent payments will be debited to her credit card account
on every 5th on the consecutive months. On the 15th January 2021 she has a carried
forward balance of RM5,300.
The following transactions were also incurred:
Date Transactions
January 17 Bought return flight ticket to Kota Kinabalu, Sabah for RM585
January 21 Purchased groceries at Cold Storage for RM325
January 22 Deposited RM3,500 at HSBC Melaka for card monthly repayment
January 26 Purchased sofa furniture at SSF for RM4,950
February 2 Dinner at Tony Roma’s for RM250
February 12 Pump in petrol at Petronas Jalan Hang Tuah for RM85
February 13 Purchase khat painting at Kufi Gallery for RM750
The prevailing interest charged on credit card is 18 percent per annum on the unpaid
balance and minimum payment is 5 percent. Using the average daily balance method
including current purchases, compute the following:
i. Average daily balance
ii. Total interest charged
iii. Total Outstanding balance
iv. Minimum payment
v. Outstanding payment after minimum payment
(10 marks)
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ANSWER: QUESTION 4
AVERAGE DAILY BALANCE
PERIOD NO OF BALANCE (RM) AGGREGATE BALANCE
DAYS (RM)
January 5 -14 10 3600 36000
January 15 - 16 2 3600 + 5300 = 8900 17800
January 17 - 20 4 8900 + 585 = 9485 37940
January 21 1 9485 + 325 = 9810 9810
January 22 1 9810 + 3500 = 13310 13310
January 26 – February 7 13310 + 4950 = 127820
1 18260
February 2 - 11 10 18260 + 250 = 18510 185100
February 12 1 18510 + 85 = 18595 18595
February 13 1 18595 + 750 = 19345 19345
37 465720
AVERAGE DAILY BALANCE INCLUDING CURRENT PURCHASES
Average daily balance Aggregate balance/No. of days
465720/37 = RM12587.03
Interest amount Monthly interest rate x Average daily balance
1.5% x RM12587.03 = RM188.81
Outstanding balance Ending balance + Interest amount
RM19345 + RM188.81 = RM19533.81
Minimum payment Minimum payment rate x Outstanding balance
5% x RM19533.81 = RM976.70
Outstanding balance after minimum payment Outstanding balance – Minimum payment
RM19533.81 – RM976.70 = RM18557.11
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CONFIDENTIAL 10 BA/JUL 2021/ FIN533
QUESTION 5(a)
Harith is planning to renovate his parent’s house in Penang. The contractor informed him
that it will cost approximately RM100,000. Harith has allocated RM60,000 for the renovation
and needs to consider taking personal loan on the balance of the cost. Bank AKU is
promoting a flat rate of 3.5 percent over 10 years. Calculate the amount of monthly
installment he needs to pay. Suggest one (1) reason on how personal loan can be a good
choice.
(5 marks)
QUESTION 5(b)
Aryan is a fresh graduate who has just started working for two months and now he plans to
buy his first car using Vehicle Financing - Graduate Scheme. June Bank is offering a 3.3
percent interest rate for a period of 9 years. The price of Perodua Axia is RM36,500 before a
10 percent down payment. Calculate how much Aryan needs to pay for the monthly
installment.
(5 marks)
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CONFIDENTIAL 11 BA/JUL 2021/ FIN533
QUESTION 5 (A)
Personal loan is good because it has lower interest and higher borrowing limits.
END OF QUESTION PAPER
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