LESS:
FIXED OUTFLOWS
Mortgage 5 33,164.00 27,304.00 60,468.00
Property Insurance 6 - - -
Car Loan 7 - 33,392.00 33,392.00
Sub Total 33,164.00 60,696.00 93,860.00
VARIABLE OUTFLOWS
Home Maintenance 9 144,000.00 - 144,000.00
Entertainment Expenses 10 12,000.00 - 12,000.00
Family Vacation 30,000.00 - 30,000.00
Petrol, Parking, Toll Charges 8 21,600.00 - 21,600.00
Insurance, Road Tax 5,000.00 - 5,000.00
Peter’s Tuition Cost 18,000.00 - 18,000.00
Peter’s Room and Board Cost 8,400.00 - 8,400.00
Sub Total 239,000.00 - 239,000.00
TOTAL OUTFLOWS (272,164.00) (60,696.00) (332,860.00)
NET CASH FLOW (Surplus) 70,369.00 44,891.00 115,260.00
Notes
2. EPF
Charles’s EPF contribution is = RM 280,000 x 11%
11% from his annual salary. = RM 30,800
Emily’s EPF contribution is = RM 98,000 x 11%
11% from her annual salary. = RM 10,780
3. Monthly Tax Deductible
Charles Lee = RM 5,000 x 12 months
= RM 60,000
Emily Lee = RM 650 x 12 months
= RM 7,800
4. Bonus
Charles Lee = RM 280,000 / 12 months
= RM 23,333
Emily Lee = RM 98,000 / 12 months
= RM 8,167
5. Mortgage
Charles Lee PV = RM500000 – (RM500000 x 20%)
= RM 400,000
I/Y = 6.75%
N = 25x12 = 300
PMT = RM 2,763.65
Annual Payment = RM 2,763.65 x 12 months
= RM 33,163.80
= RM 33,164
5. Mortgage
Emily Lee PV= RM 380,000 - (RM380,000×10%)
= RM 342,000
I/Y = 7%
N = 30×12=360
PMT = RM 2,275.33
Annual Payment = RM 2,275.33 x 12 months
= RM 27,303.96
= RM 27,304
Emily Lee
P/Y=12
PV=RM380,000-(RM380,000×10%)
=RM342,000
I/Y=7.00%
N=30×12=360
PMT=RM2,275.33
2ND, PV (AMORT)
P1=1
P2=6×12=72
BAL=RM317,005.45
=RM317,005
12. Hire purchase
Emily Lee (RM137,700×4.25%×5 )+RM137,700
= ×4 years
5 years
=RM133,569
Assumption:
Charles Lee and Emily Lee is working for extra income for a year.
The rental income for Emily Lee can be receive every month.
The petrol, parking, and toll charge should be a variable cost because this cost will keep
change every year.
The insurance and road tax should be a variable cost.
Peter’s tuition fee should be a variable cost because it will increase 3% every year.
Peter’s room and board should be a variable cost because it will increase 3% every year.
All of the variable outflow is paid by Charles Lee.