SP 3.1.

3: Perform calculations involving the value of return of investments, hence

explain the factors that affect the return of investments and its impact.

Exercise

1. On 1 January 2019, Wani invested 5000 units in Amanah Saham Bumiputera (ASB) worth
RM1.20 per unit. For the financial year ending 31 December 2019, ASB paid a dividend of
8%. On 1 January 2020, Wani sold all the shares that she owned at a price of RM1.40 per
unit. What is the return on investment for Wani?

2. Amira buys 10 000 units of unit trust cost RM1.55 per unit. If one year later she sells all
the unit trust with the price of RM1.70 per unit, calculate the value of return on investment
received by Amira.
3. In the year 2018, Chew bought shares of a company for RM5000. During the shareholding
period, Chew received dividend of RM570. In the year 2020, he sold all his shares and
received RM7000. Calculate the return on his investment.

4. Encik Fahim bought a house on 1 January 2016 in Johor Bahru at RM400 000 and made
10% down payment of RM40 000. He expected a return of 50% in 20 years. Encik Fahim
sold the house at a price of RM750 000 after having owned the house for 20 years. The total
loan was repaid to the bank amounting to RM575 000. During that period, he managed to
obtain a rent of RM96 000.

Other expenses involved are as follows:

Legal costs RM5000

Stamp duty RM5000
Agent commission RM3000

What is the return on investment for Encik Fahim for 20 years?

3.1.5 Calculate the average cost per share for the investment of shares using the ringgit
cost averaging strategy and explain the benefits of the strategy.

Exercise

1.

a) Identify the average cost per unit and the number of shares owned by Puan Mary and
Encik Joseph.

b) Who is a wise investor? Give your justification.

3.2 CREDIT AND DEBT MANAGEMENT

3.2.1 Explain the meaning of credit and debt, and hence describe the wise management
of credit and debt.

1. Complete the following statement with words ‘Credit’ or ‘Debt’.

a) ______________ is a postponement of payment facility provided by the supplier to the

consumer. For example, credit cards and loans.

b) ______________ means an amount that has been borrowed but has not been settled.

2. Describe the wise management of credit and debt.

a)

b)

c)

d)

3. What do you understand about the advantages and disadvantages of credit cards? Complete
the table below.

Advantages of credit cards Disadvantages of credit cards

 Credit card users can enjoy the reward  Charged with charges such as annual
system in the form of ________________ fees, finance charges (interest), cash
or __________________________. advance interest charges and
____________________________.

 Not required to carry a lot of  Spend _____________________ it

___________. should.

 Payment method is easy and  Some stores do not accept payment via
_______________. _______________________.

 Ease of buying goods and services

___________.