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The banking system, comprising commercial banks, investment banks, and Islamic
banks, is the primary mobiliser of funds and the main source of financing to support
economic activities in Malaysia.
A commercial bank is a type of financial intermediary and a type of bank. Commercial
banking is also known as business banking. It is a bank that provides checking
accounts, savings accounts, and money market accounts and that accepts time
deposits. Commercial banking may also be seen as distinct from retail banking, which
involves the provision of financial services direct to consumers. Many banks offer both
commercial and retail banking services.
Islamic bank refers to a system of banking or banking activity that is consistent with the
principles of Islamic law (Sharia) and its practical application through the development
of Islamic economics. Sharia prohibits the payment of fees for the renting of money
(usury) for specific terms, as well as investing in businesses that provide goods or
services considered contrary to its principles (forbidden). While these principles were
used as the basis for a flourishing economy in earlier times, it is only in the late 20th
century that a number of Islamic banks were formed to apply these principles to private
or semi-private commercial institutions within the Muslim community.

To know about how the financial institutions in Malaysia managing their services.
To explore the application on ratios in regular savings, simple and compound
interest especially in personal loan.
Construct visual representation of data and communicate findings through logical
and critical analysis of information
Make meaningful and rational inferences and judgments based on knowledge of
ratio
Planning budget proposal for monthly and annual expense based on monthly
income.
To enable student to write a complete report.
Manage data in a systematic manner so as to process and display information
discreetly and meaningfully

MONTHLY INCOME
MINISTRY OF EDUCATION
Name

Salary Number

: 84052745

I/C Number

Payment Centre : 01554 Sek. Keb. Sungai Dua

MONTHLY INCOME

AMOUNT(RM)________

Basic Salary

1, 750.00

House Allowance

300.00

Government Service Allowance

300.00

Transportation Allowance

150.00

Total Monthly Income

2, 500.00

Account number: 159074894729

The table above shows the monthly income or salary. The basic salary is RM 1,750, the
house allowance is RM 300, the government allowance is RM 300 and the
transportation allowance is RM 150. Hence the total monthly income is RM 2500.

MONTHLY EXPENSES
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ITEMS

MONTHLY EXPENSES

ANNUAL EXPENSES

House Rent
Car Loan
Foods
Bills
Insurance
Parents
Personal Spending
Saving
TOTAL EXPENSES

(RM)
300
250
450
160
70
150
200
300
1,880

(RM)
3600
3000
5400
1920
840
1800
2400
3600
22, 560

The table and charts show the money spent for different types of item such as
house rent, car loan, foods, bills, insurance, parents, personal spending and saving.
The trend indicates that the large money spent for foods about 450 per month or about
24%.
About RM 300 per month or 16% spent for house rent and saving. The spent for
both item are secondly large. Saving is very important in our life. About 13% or RM 250
per month spent for car loan payment. It is thirdly large spent. Besides that, RM 200 per
month or 11% spent for personal spending such as accessory, medicine and many
more.
Furthermore, RM 160 per month or 8.1 % spent for the bills like as water bill,
electric bill and phone bill. 7.9% or RM 150 per month spent for parents. It was to
appreciate and thankful to them. The smallest spent about 4% or RM 70 per month was
for insurance. It was very importance for our future life.

PERSONAL LOAN BUDGET

MONTHLY PERSONAL LOAN

ANNUAL PERSONAL LOAN

BUDGET (RM)
Total Monthly Income Total Monthly

BUDGET (RM)
Total Annual Income Total Annual

Expenses= Monthly Personal Loan

Expenses = Annual Personal Loan

Budget

Budget

RM 2,500 RM 1,880 = RM 620

RM 30,000 RM 22, 560 = RM 7440

TOTAL MONTHLY PERSONAL

TOTAL ANNUAL PERSONAL

LOAN BUDGET = RM 620

LOAN BUDGET = RM 7,440

FORMULA ON HOW TO CALCULATE PERSONAL LOAN REPAYMENT

INCOME PER MONTH

RM2500.00

RATE OF INTEREST

(Based on the bank interest)

PAYMENT PERIOD

15 YEARS(Depends on the bank schemes)

AMOUNT OF LOAN

RM50,000

AMOUNT OF INTEREST
total
amount of interest
AMOUNT HAVE TO PAY

Amount of loan + Amount of interest = Amount Have

To Pay

MONTHLY PAYMENT

=monthly payment

BANK RAKYAT
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INCOME PER MONTH

RM2500.00

RATE OF INTEREST

5.80%

PAYMENT PERIOD

15 YEARS

AMOUNT OF LOAN

RM50000

AMOUNT OF INTEREST
RM43500

AMOUNT HAVE TO PAY

RM50000 + RM43500= RM93500

MONTHLY PAYMENT
= RM520

We must pay RM520 per month with Bank Rakyat

CIMB BANK
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INCOME PER MONTH

RM2500

RATE OF INTEREST

4.99%

PAYMENT PERIOD

15 YEARS

AMOUNT OF LOAN

RM50000

AMOUNT OF INTEREST
50000

15= RM37425

=
RM50000 + RM37425=RM87425

AMOUNT HAVE TO PAY

MONTHLY PAYMENT
=RM486

We must pay RM486 per month with CIMB bank

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BANK SIMPANAN NASIONAL

INCOME PER MONTH

RM2500.00

RATE OF INTEREST

3.50%

PAYMENT PERIOD

15 YEARS

AMOUNT OF LOAN

RM50000.00

AMOUNT OF INTEREST
50000
AMOUNT HAVE TO PAY

= RM26250.00

RM50000 + RM26250= RM76250.00

MONTHLY PAYMENT
= RM 423.60

WE MUST PAY RM423.60 PER MONTH

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PUBLIC BANK
INCOME PER MONTH

RM2500.00

RATE OF INTEREST

3.4%

PAYMENT PERIOD

15 YEARS

AMOUNT OF LOAN

RM50000

AMOUNT OF INTEREST
50000
AMOUNT HAVE TO PAY

15= RM25500.00

RM50000 + RM25500=RM 75500.00

MONTHLY PAYMENT
= RM 419.44

WE HAVE TO PAY RM 419.44 PER MONTH

BANK ISLAM
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INCOME PER MONTH

RM 2500.00

RATE OF INTEREST

3.6%

PAYMENT PERIOD

15 YEARS

AMOUNT OF LOAN

RM50000.00

AMOUNT OF INTEREST
50000
AMOUNT HAVE TO PAY

15= RM 27000.00

RM 50000+ RM 27000= RM 77000.00

MONTHLY PAYMENT
= RM 427.77

WE HAVE TO PAY RM 427.77 PER MONTH

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BANK

RATE OF

REPAYMENT

AMOUNT OF

AMOUNT

MONTHLY

INTEREST

PERIOD

INTEREST

THAT HAVE

REPAYMENT

(%)

(RM)

(RM)

TO BE REPAY

(RM)

(RM)
BANK

5.80%

15 years

RM 43500

RM 93500

RM 520.00

4.99 %

15 years

RM 37425

RM 87425

RM 486.00

3.50 %

15 years

RM 26250

RM 76 250

RM 423.60

3.40 %

15 years

RM 25500

RM 75500

RM 419.44

3.60 %

15 years

RM 27 000

RM 77 000

RM 427.77

RAKYAT

CIMB BANK

BANK
SIMPANAN
NASIONAL

PUBLIC
BANK

BANK
ISLAM

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The graph shows that Bank Rakyat has the highest rate of interest while Public Bank
has the lowest rate of interest

The graph shows that Bank Rakyat has the highest total amount of interest while Public
Bank has the lowest total amount of interest

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The graph shows that Bank Rakyat has the highest total amount that have to repay
while Public Bank has the lowest total amount that have to repay

The graph shows that Bank Rakyat has the highest monthly repayment while Public
Bank has the lowest monthly repayment

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BANK

RATE OF

REPAYMENT

AMOUNT OF

AMOUNT

MONTHLY

INTEREST

PERIOD

INTEREST

THAT HAVE

REPAYMENT

(%)

(RM)

(RM)

TO BE

(RM)

REPAY
(RM)

PUBLIC

3.40 %

15 years

RM 25500

RM 75500

RM 419.44

BANK

Based on our researched and calculation, we have made our final decision and agree to
choose Public Bank scheme loan as our personal loan. It gives us more benefits than
other bank. Why do we chose Public Bank scheme loan?
First of all, the Public Bank scheme loan gives us the lowest rate of interest. The
rate of interest is only 3.40%. the total amount of interest for 15 years is RM 25500. It is
the lowest compare with the other bank. Therefore the amount that we have to pay back
is about RM 75500.
Furthermore, after we found that we only have to pay RM 419.44 per month. It was
affordable according to our personal loan budget. With the lowest payment, it can less
our burden when paying the loan each month. Our personal loan budget is RM 620.
Therefore, we could have a balance about RM 200. Hence, we can use this RM 200 as
our monthly saving.

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BY : NOR NADIA BINTI GHAZALI

In this assignment, we were given a task to plan a budget proposal for monthly
and annual expenses based on monthly income and relevant deductions for making a
personal loan. We need to identify at least five banks whether from Islamic or
Conventional Financial Institutions and find out the various offers given by the Financial
Institutions. After that, we must make a comparison between the banks before deciding
the best bank to make a personal loan.
Actually, I not understand better about this assignment. After have some
planning, I began by reading the notes that we get from our lecturer, Mr. Gan during the
class session. From the notes, I can understand what we need in the assignment. I also
ask to the seniors about this assignment to improve our understanding.
We also went to the library and served the internet to find some additional
information. Although it was very difficult task for new students like us, it gave us an
important experience in finding information. At the end, we were very happy and grateful
as we had completed our assignment successfully on the right time. It showing our
courage and patience to fulfill the task given. Thank you.

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BY : SYAZA BINTI MAHADHIR

Thanks to God for giving me the opportunity to finish up this assignment. During
made this assignment, I can see a lot of thing that I not see before. From the beginning,
I try hardly to finish up this assignment together.
We can learn a few new skills to solve the mathematics problem especially how
to calculate the personal loan bank. Moreover, I get a lot of tips how to learn
mathematics subject successful. I feel very happy and study with more better.
Besides that, during the assignment was running, I also got the difficulty to find
the information and other reference materials about the personal loan. I need to go to
any nearer bank in my hometown to get the pamphlet and related information. about
the personal loan bank schemes. I also had some conversation with the bank officer to
know deeply about the personal loan offered.
From the Short Course Work, I got many knowledge and skills in managing our
personal budget in our daily life. In fact, I also can know the available services in several
Financial Institutions whether in Conventional or Islamic Financial Institution, especially
in making the personal loan.
Finally, I hope that this assignment will follow the guidelines given. Thank you.

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BOOKS
Jean Luttrell Weirich, 1983, Personal Financial Management, published by
Little Brown and Company
Rosli Mahmood, 1998, Perbankan dan Pemberian Pinjaman, published by
Utusan Publication and Distributors Sdn. Bhd.

INTERNET

http://en.wikipedia.org/wiki/Commercial_bank
http://www.alacrastore.com/storecontent/moodys/PBC_109641
ttp://en.wikipedia.org/wiki/Islamic_bank
http://education.yahoo.com/reference/dictionary/entry/loan
http://en.wikipedia.org/wiki/Loan
http://en.wikipedia.org/wiki/Interest
http://www.answers.com/topic/interest

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