akpk - power eng appendix and test answer

8/6/2019 AKPK - Power Eng Appendix and Test Answer

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Agensi Kaunseling dan Pengurusan Kredit Aras 8, Maju Junction Mall

1001, Jalan Sultan Ismail50250 Kuala LumpurFax : 03-2616 7601 E-mail: [email protected]

AKPKFirst Edition 2011

The copyright o this book belongs to Agensi Kaunselingdan Pengurusan Kredit (AKPK). This book or parts thereo ,may be reproduced, translated, or transmitted in any ormwith prior written permission rom AKPK only or the solepurpose o education. No monetary gain in any orm shouldbe made or derived, whether direct or indirect rom suchreproduction.

ISBN 978-983-44004-2-2

Disclaimer:

The in ormation contained in this book is solely or educational purpose. It is notintended as a substitute or any advice you may receive rom a pro essional fnancialadvisor.

Agensi Kaunseling dan Pengurusan Kredit (AKPK) disclaims all and any liability to anyperson using the in ormation in this book as a basis or making or taking an action.

While all e orts have been made to make the in ormation contained in this bookaccurate, AKPK seeks your understanding or any errors or omission.

The names and details o individuals in the real li e cases have been changed toprotect their identities.


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aPPEnDiCEs

1.1 s mple o bud e d c ow eme o E Jo (a e 29)

Per o l Mo l Bud e w C Flow s eme

ac u li em Bud e C Flow

RM RM

Salary (net o EPF, SOCSO and tax) 3,900 3,900

Other Sources

to l Mo l i come 3,900 3,900

Le :

s v (10% o mo l come) 390 390

Emer e c Fu d 100 100

i come (ne o s v ) 3,410 3,410

Le : F xed Expe e

Rental 400 400

Housing Loan Installment

Car Loan Installment 938 938

Car Insurance 125 125

Road Tax 50 50

to l F xed Expe e 1,513 1,513


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RM RM

Le : V r ble Expe e

Food 600 630

House Utilities 140 143

Handphone Bill 100 115

Petrol 225 300

Services & Maintenance 100 150

Parking / Toll etc 102 120

Car Repairs 50

to l V r ble Expe e 1,317 1,458

Le : D cre o r Expe e

Medical Expenses 40

Clothing 100 80

Entertainment 50 100Household Item 90 50

Personal Items 100 129

Gifts 100

Other Expenses 100 50

to l D cre o r Expe e 580 409

Exce / (Defc ) 0 30


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1.2 U e work ee o prep re d r ck our ow bud e d c ow.

Per o l Mo l Bud e w C Flow s eme


RM RM

Salary (net o EPF, SOCSO and tax)Other Sourcesto l Mo l i come

Le :

s v (10% o mo l come)

Emer e c Fu d

i come (ne o s v )

Le : F xed Expe e

to l F xed Expe e


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RM RM

Le : V r ble Expe e

to l V r ble Expe e

Le : D cre o r Expe e

to l D cre o r Expe e

Exce / (Defc )


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1.3 Ex mple o E . Jo ne Wor s eme

i em a e L b lRM RM

s v

Savings Accounts 3,100

Current Accounts 1,800

Fixed Deposit Accounts 25,600

Cash on Hand 500

Proper e /Per o l Belo

Apartment

House

Land

Jewellery 7,600

Car 50,000 56,250

i ve me

Employee Provident Fund (EPF) 63,000

Unit Trust 16,000

Shares 6,000

Lo

Credit Cards 1,200

Study Loan 7,200

Borrowing rom riends & amily

Other Loans

to l 173,600 64,650

ne Wor (a e - L b l e ) = RM108,950


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1.4 U e work ee o prep re our ow e wor eme

i em a e L b lRM RM

s v

Proper e /Per o l Belo

i ve me

Lo

to l

ne Wor


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4.1 adv e d d dv e o ew ver u u ed c r

new c r

adv e D dv e

Features: Cost more More option to match your

needs (the make, colour etc) High depreciation at least 10% in the rst year. Thus loss Latest technology is higher on resale

hybrid etc Higher insurance premiums

Safety (alarm, ABS, air bag etc) Higher nancing costs over the

Reliability: tenure No worries about past history Low maintenance Longer warranty period

Financing:

Easy to obtain Higher margin Cheaper rates Longer tenure

U ed c r

adv e D dv e

Generally costs less Features

More a ordable Less option

Cost may be low enough to Reliabilitybuy on cash, there ore less Uncertain past historyhassle Higher maintenance

No warranty PUSPAKOMs inspection Lower insurance premium

Financing

May be dif cult to obtain Lower margin Higher rates Shorter tenure


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C r Pr ce (RM) 55,000 55,000 55,000 55,000

HP Rate (Flat) 5% 5% 5% 5%

Down Payment 10% 10% 30% 30%

Loan Tenure (Years) 5 7 5 7

Compu o

Down Payment (RM) 5,500 5,500 16,500 16,500

Loan Required (RM) 49,500 49,500 38,500 38,500

Total Interest (RM) 12,375 17,325 9,625 13,475

Total Loan (Principal +Interest) (RM) 61,875 66,825 48,125 51,975

Monthly Installment (RM) 1,031 796 802 619

4.2 i er c ve exerc e hP compu o ble

4.3 s ep o repo e o

step 1 Pre-repo e o

A pre-repossession notice ( ourth schedule) will be served on you (personallydelivered or sent by registered mail to your last known address) and yourguarantor. This is a 21 days notice in writing rom your banking institution toin orm you that it intends to repossess the vehicle. This will be ollowed by asecond notice, 14 days a ter the ourth schedule notice.

W c ou do?

You have two choices, both of which must be acted upon before the expiryo the 21 days stated in the ourth schedule notice to avoid repossession:

Pay the outstanding arrears as stated in the fourth schedule notice; or

Return the vehicle to your banking institution and pay any outstandingdebt.


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step 2 Repo e o o our ve cle

Upon the expiry of 21 days in the fourth schedule notice, repossession isallowed i you ail to pay the outstanding arrears.

step 3 Po -repo e o o ce

Upon repossession of the motor vehicle, your banking institution will send anotice in writing in orming you that it has taken possession o the vehicle. Thiswill be ollowed by a th schedule notice to you and your guarantor.

W c ou do?

You have three options, all of which must be acted upon before the expiry of

the 21 days as stated in the th schedule notice:

Pay all outstanding arrears and out of pocket expenses (includes costo storage, repair or maintenance, cost o repossession and re-delivery)incurred by the banking institution to take back possession o the motorvehicle; or

Repay in full the balance due and settle all out of pocket expenses(includes cost o repossession, storage, repair or maintenance); or

Introduce a buyer to purchase the motor vehicle at the indicative price inthe notice.

step 4 no ce o d po l o mo or ve cle

I the amount due under the th schedule notice is not paid within 21 days,your banking institution can sell the motor vehicle through a public auction bygiving you a notice 14 days be ore the date o the auction or conduct a privatesale to sell the motor vehicle.

step 5 sell e mo or ve cle

Sale o the motor vehicle can take place a ter the 14 days notice. As auctionprices are based on orced sale value, it will be lower than the prevailingmarket value. The auction price may also reduce at each subsequent auctioncarried out. I proceeds rom the sale o the motor vehicle are inadequateto pay the outstanding amount due, your banking institution will recover theshortfall from you. You will also need to bear the auction expenses.


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5.1 Bu ou e: o er ee or co

When buying a house you will need to budget or certain ees and charges, someo which are:

a) Sale and Purchase Agreement: Legal Fees Disbursement fees (miscellaneous fee, title search etc) Stamp Duty

Stamp Duty (transfer) = 1% for the 1st RM100,0002% for RM100,001 RM500,0003% for RM500,001 RM2 million4% for amounts above RM2 million

b) Loan Agreement: Legal Fees Disbursement fees (miscellaneous fee, valuation etc) Stamp Duty

Stamp duty = 0.5% of the loan amount

Legal fees = 1% for the 1st RM100,0000.5% for RM100,001 RM5 million

0.25% for amounts above RM5million

Disbursement fees & = Between RM1,000 RM3,000other miscellaneous charges (Based on the property)

Insurance costs = 0.055% of sum insured(Fire/House owner)

It is best that you allocate an additional budget of 5% to 10% of the purchaseprice to cover or all these charges.

The above ees and charges are subject to changes.

Remember: Buying a house is not just paying the monthly installment,there are other costs such as the assessment, quit rent,

maintenance fees, utilities


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gLOssaRy

B e Le d R e (BLR) A minimum interest rate calculated by banking institutions based on a ormula which takesinto account the institutions cost o unds and other administrative costs.

CCRisCentral Credit Re erence In ormation System, which is a computerised database systemdeveloped and maintained by the Credit Bureau to collect, process, store and generatecredit in ormation.

Cred wor e A creditors measure o an individuals ability to meet debt obligations.

Compre e ve Cover An insurance policy that provides wide coverage towards loss or damage o your ownvehicle due to an accident, re or the t, and in relation to third party injury and death andproperty loss or damage.

D bur eme Fee Various types of fees such as registration of charge fee, land search fee, bankruptcy search

ee incurred by banking institutions and solicitors attending to the loan documentation, inrelation to the loan, which are payable by borrowers.

Foreclo ureLegal action available to the banking institution or recovering outstanding sums owed bya borrower who has de aulted on his/her loan. The property pledged by the borrower tosecure the loan is sold, and the proceeds o the sale are used to settle the outstandingloan amount.

Fr udule tr c o (cred c rd) A transaction unauthorised by the cardholder. Such transactions may occur as aconsequence o credit cards that are lost, stolen, not received, issued on a raudulentapplication, counter eit or other raudulent conditions as de ined by the credit cardissuer.

gro Mo l i comeThe monthly income be ore deducting income tax, zakat (i applicable), Socso, EPF,nancing installments or other deductions plus any additional income rom overtime,commissions and other sources.

hou e holder i ur ce An insurance policy that covers the contents o the house, such as urniture, the t, foodand re. This policy does not cover damage to the house itsel .


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homeow er i ur ce An insurance policy that combines liability coverage or a homeowner together withprotection rom damages caused by wind, re, vandalism and other risks.

ide t eIs a orm o raud or cheating using another persons identity in which someone assumesthat persons identity, typically in order to access resources or obtain credit and otherbene ts in that persons name.

L e P me C r eInterest charged on the overdue installment payment, calculated on a daily basis.

Lo Lock- Per odThis is the minimum period borrowers are required to maintain their loans with bankinginstitutions without being subjected to any penalty.

Lo te ureNumber o years taken to ully repay the loan principal and interest as agreed under aspeci c repayment programme.

M r o F cThe nancing amount granted by the banking institution, expressed as a percentage o thevalue o property pledged to secure the nancing.

Mor e Reduc term a ur ce (MRta)

A term insurance which reduces over the tenure o the loan. This orm o insurance is usedto provide cover or the outstanding loan amount, in the event o death or total permanentdisability o the insured.

Overdr A type o credit acility granted to the eligible current account holder. The borrower isallowed to issue cheques exceeding the credit balance in the current account but subjectto the pre-approved limit granted by the nancial institution.

Prep me

Payment o all or part o a loan be ore maturity.Prep me Pe l

A ee charged by nancial institutions or early payment o loan in ull. The ee charged isusually based on a percentage of the loan amount or X months of interest.

Pr c p lThe amount borrowed rom nancial institutions, excluding interest and other charges.

Reb ePartial re und o the term charges (interest) calculated according to a ormula stipulated inthe Hire-Purchase Act 1967, if the hirer made an early settlement.


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Ref cThe process o paying o a portion or the entire amount o the existing loan with theintention o obtaining another loan rom the same or another banking institution.

Repo eWhen the owner o the motor vehicle (i.e. banking institution) takes back possession othe motor vehicle rom the hirer.

s le d Purc e a reeme A written contract signed between the intended buyer o the property and the developeror seller o the property, stating among others, the terms and conditions under which theproperty will be sold.

s rThe law o Islam, that covers every aspect o li e, based upon the Quran, Sunnah (sayings

and deeds o prophet Muhammad p.b.u.h.), Ijma (consensus o Muslim scholars) andQiyas (analogy).

s mp Du o Lo a reemeThe duty payable to the Government (Stamp Of ce) for the stamping of an agreement, inthis case, the Loan/Facility Agreement. Duty payable is based on the loan/ acility amount.The current rate is 0.5% of the loan/facility amount or RM5 per RM1,000.

term C r eTotal interest charged on the hire-purchase acility and is calculated based on a fat rateon the amount nanced over the duration o the acility.

t rd-p r cover An insurance policy that covers claims made against you by a third party or injuriesor death o the other person (third-party), as well as loss or damage due to an accident,re or the t.


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Answers:

Chapter 1

1. A

2. D

3. D

4. B

5. C

6. C

7. B

Chapter 2

1. B

2. D

3. A

4. D

5. A

6. D

Chapter 3

1. D

2. C

3. D

4. C

5. C

6. B

7. C

8. D

9. A

Chapter 4

1. D

2. A

3. D

4. C

5. C

6. B

7. C

Chapter 5

1. D

2. C

3. A

4. C

5. A

6. C

7. A

Chapter 6

1. D

2. A

3. C

4. D

5. B

6. A

7. C

sELF assEssMEnt

akpk - power eng appendix and test answer

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