Worksheet Chapter 3: Consumer Mathematics: Savings and Investments, Credit and Debt

1. Mr. David bought a new car priced at RM 80,000. He paid a 10% down payment and took a hire purchase loan for the balance with a flat interest rate of 3.2% per annum for 7 years. Calculate his monthly installment.

2. Puan Wong deposited RM 15,000 in a fixed deposit account with an interest rate of 4% per annum compounded semi-annually (n = 2) for 2 years. Calculate the final matured value.

3. Fill in the blank: The simple interest formula is I = P r t, where 'r' represents the annual interest rate expressed as a ________.

4. Over 3 months, Sarah used Dollar-Cost Averaging to invest RM 600 per month in a stock. The prices per unit were RM 2.00, RM 1.50, and RM 2.40. Calculate the total units bought and her overall average cost per unit.

5. Encik Hafiz deposited RM 12,000 into a savings account that pays a simple interest rate of 3.5% per annum. Calculate the total savings balance in his account after 3 years.

6. True or False: In a reducing balance loan, the monthly interest charge decreases as the outstanding principal decreases.

7. True or False: Dollar-Cost Averaging requires an investor to timing the market perfectly and buy shares only when prices reach their absolute lowest point.

8. A credit card statement shows an unpaid balance of RM 2,500. (a) Calculate the 5% minimum payment. (b) If the cardholder only pays the minimum payment, calculate the remaining unpaid balance subject to finance charges.

9. Encik Chong bought 5,000 units of a unit trust at RM 1.20 per unit. A year later, he received a total dividend of RM 300 and sold all the units at RM 1.35 per unit. Calculate his Return on Investment (ROI).

10. Which of the following returns applies specifically to real estate investments?