QUIZ: CHAPTER 3 (3.

2 CREDIT AND DEBT MANAGEMENT)

NAME:
CLASS:

QUESTION 1
State one advantage of credit cards and one disadvantage of credit cards
(2 Marks)
Answer:
a)

b)

QUESTION 2
Mr Paul has two credit cards and the statements received are as follows:
Credit card Visa Plus Gold
Current balance RM2400 RM960

Calculate the minimum payment that Mr Paul needs to make for each credit card.
(4 Marks)
Answer:
QUESTION 3
Encik Ashraf receives his credit card statement for June 2019 from Bank Karisma. The statement
shows that Encik Ashraf has a current balance (outstanding balance) of RM6400.
Bank Karisma imposes an annual interest rate of 18% on the outstanding amount after the
interest free period and late payment charge of 1%.
Assume that Encik Ashraf does not use his credit card in July
Calculate the current balance (outstanding balance) shown in his July statement, if the statement
date is 15 days from the expiry date of the interest free period
(4 Marks)
Answer:

QUESTION 4
Aziz buys a car priced at RM90000 on credit. He pays 10% down payment and the balance is
paid by monthly instalments over 6 years. The bank charges a flat interest rate of 5% per annum.
Calculate the total repayment and monthly instalment that Aziz needs to pay.
(3 Marks)
Answer:
QUESTION 5
Irene works as a sale executive in a private company and has a monthly income of RM4500. She
decides to buy a new car and contact Bank Purnama and Bank Makmur to secure loan of
RM60000. The loan packages offered by the banks to Irene are as follows:
Loan details Bank Purnama Bank Makmur
Loan amount RM60000 RM60000
Repayment period 6 years 9 years
Interest rate 5% 4%
Guarantor Not required Required

Irene needs RM2000 as living expenses every month. Give a suggestion to Irene to choose a
suitable bank. State your reasons.
(8 Marks)
Answer: