Worksheet Chapter 10: Consumer Mathematics: Financial Management

1. Fill in the blank: The SMART concept stands for Specific, Measurable, Attainable, Realistic, and ________.

2. Categorize each of the following expenses as either 'Fixed Expense' or 'Variable Expense': (i) Life insurance policy premium (ii) Petrol and toll charges (iii) Home loan installment (iv) Dining out with friends

3. True or False: Car loan repayment is classified as a variable expense because fuel consumption varies each month.

4. The table below shows the financial plan of Encik Rahim: - Net Income: RM 4,500 - Savings (10% of net income): RM 450 - Emergency Fund Contribution: RM 200 - Fixed Expenses (Housing Loan + Car Loan + Insurance): RM 2,300 - Variable Expenses (Groceries + Utilities + Petrol + Entertainment): RM 1,850 (a) Calculate Encik Rahim's total monthly expenses (including fixed and variable expenses). (b) Calculate Encik Rahim's net cash flow. (c) Based on the result in (b), evaluate Encik Rahim's financial health and provide one recommendation to improve his plan.

5. Encik Razak's monthly total living expense is RM 3,200. He currently has RM 10,000 saved in his emergency account. (a) Calculate the minimum emergency fund (3 months) and maximum recommended emergency fund (6 months) for Encik Razak. (b) Is Encik Razak's current savings adequate for his emergency fund? Explain.

6. True or False: Emergency funds should cover at least 3 to 6 months of total monthly expenses.

7. State the formula to calculate Net Income after payroll deductions.

8. Siti earns a gross income of RM 3,500 monthly. Her statutory deductions are 11% for EPF and RM 17.50 for SOCSO. (a) Calculate her monthly EPF deduction in RM. (b) Calculate her monthly net income.

9. Which of the following is classified as a fixed expense?

10. Puan Liza wants to buy a kitchen robot worth RM 3,600 in 10 months. She allocates RM 300 per month from her salary. (a) Evaluate whether Puan Liza's goal is attainable with her current monthly savings rate. (b) Suggest an adjustment Puan Liza could make to achieve her goal on time.