Question 11:
(a) State two types of financial goals. [1 mark]
(b) Table 7 shows Encik Rasheed’s monthly financial plan.
(i) Based on Table 7, determine Encik Rasheed’s cash flow and state the type of the cash flow. [3 marks]
(ii) Encik Rasheed has a financial goal of saving enough money to get married within a year. He needs RM10 850 to pay the dowry and RM13 000 as the expenses for the event.
(a) Calculate the difference between the monthly savings needed by Encik Rasheed to achieve his financial goal and the amount of cash flow in b(i). [2 marks]
(b) Hence, suggest two changes that Encik Rasheed should make to his monthly financial plan as shown in Table 7 in order to achieve his financial goal. [2 marks]
Solution:
(a) Two types of financial goals are short-term financial goals and long-term financial goals.
(b)(i)
$$ \begin{aligned} \text { Cash flow }= & \text { Total income }- \text { Total expenses } \\ = & \text { RM4 } 322+\text { RM500 }-(\text { RM900 }+ \text { RM600 }+ \text { RM200 }) \\ & -(\text { RM180 }+ \text { RM550 }+ \text { RM350 }+ \text { RM200 }) \\ = & \text { RM1 } 842 \text { (Positive cash flow }) \end{aligned} $$
(b)(ii)(a)
$$ \begin{aligned} &\text { Money saving needed by Encik Rasheed to get married }\\ &\begin{aligned} & =\frac{10850+13000}{12} \\ & =\text { RM1 } 987.50 \text { per month } \end{aligned} \end{aligned} $$
Difference between the monthly savings needed and cash flow in b(i) $$ \begin{aligned} & =\text { RM1 } 987.50-\text { RM1 } 842 \\ & =\text { RM145.50 } \end{aligned} $$
(b)(ii)(b)
Changes that Encik Rasheed should make to his monthly financial plan towards achieving his financial goal
– Reduce food and drinks expenses.
– Reduce petrol expenses by using public transport.
(a) State two types of financial goals. [1 mark]
(b) Table 7 shows Encik Rasheed’s monthly financial plan.
(i) Based on Table 7, determine Encik Rasheed’s cash flow and state the type of the cash flow. [3 marks]
(ii) Encik Rasheed has a financial goal of saving enough money to get married within a year. He needs RM10 850 to pay the dowry and RM13 000 as the expenses for the event.
(a) Calculate the difference between the monthly savings needed by Encik Rasheed to achieve his financial goal and the amount of cash flow in b(i). [2 marks]
(b) Hence, suggest two changes that Encik Rasheed should make to his monthly financial plan as shown in Table 7 in order to achieve his financial goal. [2 marks]
Solution:
(a) Two types of financial goals are short-term financial goals and long-term financial goals.
(b)(i)
$$ \begin{aligned} \text { Cash flow }= & \text { Total income }- \text { Total expenses } \\ = & \text { RM4 } 322+\text { RM500 }-(\text { RM900 }+ \text { RM600 }+ \text { RM200 }) \\ & -(\text { RM180 }+ \text { RM550 }+ \text { RM350 }+ \text { RM200 }) \\ = & \text { RM1 } 842 \text { (Positive cash flow }) \end{aligned} $$
(b)(ii)(a)
$$ \begin{aligned} &\text { Money saving needed by Encik Rasheed to get married }\\ &\begin{aligned} & =\frac{10850+13000}{12} \\ & =\text { RM1 } 987.50 \text { per month } \end{aligned} \end{aligned} $$
Difference between the monthly savings needed and cash flow in b(i) $$ \begin{aligned} & =\text { RM1 } 987.50-\text { RM1 } 842 \\ & =\text { RM145.50 } \end{aligned} $$
(b)(ii)(b)
Changes that Encik Rasheed should make to his monthly financial plan towards achieving his financial goal
– Reduce food and drinks expenses.
– Reduce petrol expenses by using public transport.