Scribd
Upload
175 views13 pages

A. Basic Liquidity Ratio 3-6 Month: 1. Based On The Financial Statements, Compute June's

The document contains 11 multi-part financial calculation problems. It provides information on ratios to analyze a company's financial statements, calculations for compound interest rates, future and present values, annuities, and retirement planning. The problems cover a range of personal finance topics including investments, loans, savings, and retirement planning using common financial formulas.

Uploaded by

1 Koh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
175 views13 pages

A. Basic Liquidity Ratio 3-6 Month: 1. Based On The Financial Statements, Compute June's

The document contains 11 multi-part financial calculation problems. It provides information on ratios to analyze a company's financial statements, calculations for compound interest rates, future and present values, annuities, and retirement planning. The problems cover a range of personal finance topics including investments, loans, savings, and retirement planning using common financial formulas.

Uploaded by

1 Koh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 13

1.

Based on the financial statements, compute June’s:

a. Basic Liquidity Ratio

3-6 month

b. Debt-to-Asset Ratio

<50%

c. Debt Service Ratio

<35%

d. Non-Mortgage Debt Service Ratio

<15%

e. Liquid-Assets-to-Net Worth Ratio

>15%

f. Savings Ratio

>10%

g. Net Investment Assets to Net Worth Ratio


>50%

2. Lucas wants to know how much to invest now, if the annual interest rate is

I/Y = 7

P/Y = 12

N = 120

FV = 50,000

PV = 24879.81

3. How long does it take for RM5,000 to grow into RM6,724.44 at 10% compo

I/Y = 10

P/Y = 4

PV = -5,000

FV = 6,724.44

N = 3 years

4. What interest rate is implied if you borrow RM12,500 and repay RM21,362.

P/Y = 12

PV = 12,500

FV = -21362.24

N=3

I/Y = 18%

5. Kiki has just been paid RM400,000 by an insurer and intends to place the mo
I/Y = 6

P/Y = 1

PV = -400,000

FV = 1,000,000

N = 16 years

6. Patrick plans to place RM75,000 in a fixed deposit account with an interest r

The FD pays interest every quarter and the amount is re-deposited to earn inte

I/Y = 4

P/Y = 4

N = 10*4

PV = -75,000

FV = 111,665

7. David requires RM80,000 in 5 years’ time. He has placed his funds in a vehic

I/Y = 7.75

P/Y = 1

N=5

FV = 80,000

PV = 55,081

8. There are 2 investment plans, X and Y. Plan X involves setting aside RM500 a

If the rate of return is 9% a year compounded quarterly, which plan provides a

Mode: BGN

I/Y = 9

P/Y = 4
N = 10*4

PMT = -500

FV = 32,611

9. Jason plans to retire with an annual income of RM125,000 each year for a p

Compute the total fund required if the retirement fund is earning 5% at the dis

Mode: BGN

I/Y = 5

P/Y = 1

N = 25

PMT = 125,000

PV = 1,849,830

10. Assume that you plan to buy a condominium 5 years from now, and you es

You plan to deposit the money into the bank that pays 4% interest, and you wi

Mode: BGN

I/Y = 4

P/Y = 1

N=5

PMT = -2,500

FV = 14,082

11. Annual deposits of RM24,000 have been made at the beginning of each ye

i) 10% for the first five years

ii) 8% for the next five years

iii) 9% for the last ten years


i. Calculate the accumulated amount at the end of 20 years.

Mode: BGN

I/Y = 10

P/Y = 1

N=5

PMT = -24,000

FV = 161,174.64

ii. Calculate the total interest earned for the 20 years.

1,318,069.13 - (24,000 x 20) = 838,069.13


pute June’s:

= Cash & Cash Equivalent / Monthly Expenses

= (40,000+10,000) / (137,000/12)

4.38 months

= Debt / Asset

= (10,000+600,000+15,000) / 880,000

70%

= Annual Loan Repayment / Annual Net Income

= (36,000+18,000) / 144,000

38%

= Non Mortgage Loan Repayments / Annual Net Income

= (18,000) / 144,000

12.5%

= Liquid Asset / Net Worth

= (40,000+10,000) / (880,000-10,000-600,000-15,000)

20%

= Saving / Gross Income

= 7,000 / 144,000

4.9%

= Net Investment Asset / Net Worth


= 350,000 / (880,000-10,000-600,000-15,000)

137%

t now, if the annual interest rate is 7% compounded on a monthly basis. He wants to have RM50,000 in 10 years time.

ow into RM6,724.44 at 10% compounded quarterly?

ow RM12,500 and repay RM21,362.24 in three years with monthly compounding?

n insurer and intends to place the money in a bond fund with an expected return of 6% a year. How long will it take for the sum to be R
ed deposit account with an interest rate of 4 % a year.

amount is re-deposited to earn interest. He wants to know how much money is available after 10 years.

e. He has placed his funds in a vehicle that generates an annual compounded rate of 7.75%. How much must he invest in a lump sum

lan X involves setting aside RM500 at the beginning of every quarter for 10 years. Plan Y requires an amount of RM 250 at the beginn

ded quarterly, which plan provides a higher future value?

I/Y = 9

P/Y = 4
N = 20*4

PMT = -250

FV = 56,012

ome of RM125,000 each year for a period of 25 years.

rement fund is earning 5% at the distribution phase and the retirement fund starts immediately when Jason reached his retirement ag

inium 5 years from now, and you estimate that you can save RM2,500 per year.

nk that pays 4% interest, and you will make the first deposit at the beginning of each year. How much will you have after 5 years?

en made at the beginning of each year into the annuity policy fund for the last 20 years. During this period, the interest earned on the
e end of 20 years.

I/Y = 8 I/Y = 9

PV = -161,174.64 PV = -388,880.72

N=5 N = 10

PMT = -24,000 PMT = -24,000

FV = 388,880.72 FV = 1,318,069.13
it take for the sum to be RM 1 million?
t he invest in a lump sum now?

of RM 250 at the beginning of each quarter for 20 years.


reached his retirement age.

u have after 5 years?

he interest earned on the deposits was as follows:

You might also like