**Question 17 (15 marks)**:

Hanis just got promoted as a manager in a private company in Johor Bahru with monthly salary of RM12 000 . She wants to buy a new car model Proton X 701.8 L Premium with the price of RM124 000 with a bank loan.

**(a)**She makes a comparison and found out that the two banks that offer best loan packages are as below:

Loan aspects | Bank Sejahtera | Bank Tenang |

Sum of loan | 100% | 90% |

Interest rate | 3.1% | 2.5% |

Payment period | 9 years | 7 years |

Total repayment | RM 158 596 |

**Table 4.1**

Table 4.1, total loan repayment of Bank Tenang is not stated.

**(i)**Calculate the total loan repayment with Bank Tenang.

**(ii)**Calculate the monthly installment for both banks.

[6 marks]

**Solution**:

**(a)(i)**

$\begin{array}{l}\underset{\_}{\text{BankTenang:}}\\ \text{Sum of loan}=\frac{90}{100}\times 124500=\text{RM}111600\\ \\ \text{Interest rate incurred for 7 years}\\ =\text{RM}111600\times \frac{2.5}{100}\times 7\\ =\text{RM}19530\\ \\ \therefore \text{Total repayment}\\ =\text{RM}111600+\text{RM}19530\\ =\text{RM}131130\end{array}$

**(a)(ii)**

$\begin{array}{l}\underset{\_}{\text{BankSejahtera:}}\\ \text{Payment period}=\text{9}\times 12=108\text{months}\\ \text{Monthly installment}=\frac{\text{RM}158596}{108}=\text{RM}1468.48\\ \\ \underset{\_}{\text{BankTenang:}}\\ \text{Payment period}=7\times 12=84\text{months}\\ \text{Monthly installment}=\frac{\text{RM}131130}{84}=\text{RM}1561.07\end{array}$

**(b)**:

After almost a full year since Hanis bought a new car, she needs to renew her road tax. The engine capacity of her car is 1799 cc.

Table 4.2 shows the road tax rates for private car in Peninsular Malaysia.

Engine capacity | Road tax rate | |

Base rate | Progressive rate | |

1 401 cc – 1 600 cc | RM90.00 | |

1 601 cc – 1 800 cc | RM200.00 | + RM0.40 each cc exceeding 1 600 cc |

1 801 cc – 2 000 cc | RM280.00 | + RM0.50 each cc exceeding 1 800 cc |

2 001 cc – 2 500 cc | RM380.00 | + RM1.00 each cc exceeding 2 000 cc |

**Table 4.2**

**(i)**Who collects road tax on behalf of Malaysian government?

**(ii)**What is the basic rate of road tax, in RM, for Hanis’s car?

**(iii)**Hence, calculate the amount of road tax that Hanis have to pay.

[4 marks]

**Solution**:

**(b)(i)**

**Road Transport department or Jabatan Pengangkutan Jalan or JPJ**collects road tax on behalf of Malaysian government.

**(b)(ii)**

The engine capacity of Hanis’s car is 1799 cc, thus the basic rate of road tax for her car is

**RM200.00.**

**(b)(iii)**

Amount of road tax that Hanis have to pay

= base rate of road tax + progressive rate for each cc exceeding 1 600 cc

= RM200 + (1799 – 1600) × RM0.40

=

**RM279.60**