ONLY 2.2 i) to v). PLEASE REFER to given previous answers if needed. All info has been provided. Please state which info if missing.

a.

1. The amount of loan given to the Kovid Company equals RM15,000.

Loan Amount = Net Profit * Loan Percentage

= 30,000 * 50%

= 15,000

2. The simple interest rate is 9%.

3. The term of loan is 120 days.

Total days calculation = 13 days of August + 30 days of September +

31 Days of October + 30 Days of November +

16 Days of December

= 120

1. The maturity date is 16 December 2021. The 16th day of December makes total 120 days of promissory note; hence due date is 16 December 2021.

2. i) Discount Period = 120 days - 60 days = 60 days (Discount Date is 17th October 2021)
3. ii) Maturity Value = (15000 + (15000 x 9% x 120/360 days) = 15,450
4. iii) Proceeds = 15450 - (15450 x 5% x 60/360 days) = 15,3214
5. iv) Interest earned = 15000 x 9% x 60/360 days = 225
6. v) Discount date = 13 days of August + 30 days of September + 17 days of October

PART 2: SIMULATION REPORT (Application of Simple Interest) 2.1 PROMISSORY NOTES & BANK DISCOUNT Situation:- There is a new company, namely Kovid Company, who would like to make a loan from your company. You agree to lend this company 50% of your total net profit for a year. Assume that your company gained about RM30,000 net profit for a year. Action from your company:- Prepare a promissory note stating the details as required below. For (ii) and (ii), you can put any suitable figure based on the guideline given: i) the amount of loan given to the Kovid Company: 50% of your total net profit of RM30,000 for a year (RM ii) the simple interest rate that your company charged (%) (Note: you need to charge more than 7% per annum) iii) the term of the loan: days (not less than 90 days) (Note: Prepare a promissory note by using the following template. Write down all the details according to the above instruction.) RM 18 August 2021 Selangor 2.2 days after the date, I promise to pay to the order of (your company's name) Ringgit Malaysia: for the value received with interest at the rate of % per annum until paid. Company Due date: Kovid (2 marks) Question:- Answer the following questions by referring to the promissory note that you prepared: a) Find the due date of the note and write it on the promissory note. Include the note in your report. (2 marks) b) After 60 days, your company is in need of cash. Therefore, you decide to discounts the note at a bank that charges a discount rate of 5%. Find: i) the discount date. ii) the maturity value of the note. (2 marks) (3 marks) iii) the proceeds. (3 marks) iv) the interest that your company earned when you discounting the note. (2 marks) INSTALLMENT PURCHASE Situation and Question:- After 5 years running the business, your company plan to buy a car. The cost of this car is RM76,000. Your company decides to use 50% of the money that you get when you discounting the promissory note to pay for the down payment and buy the car through an installment plan for 9 years. If the interest rate charged is 3.5% per annum on the flat rate, find: i) the down payment amount. ii) the total interest charged. (1 mark) (3 marks) iii) the monthly payment. (2 marks) iv) the instalment price. (2 marks) v) Discuss the advantages and disadvantages of instalment purchase for your company. (2 marks) PEER EVALUATION (Individual marks) - (5 marks) Each student need to fill in and submit the peer evaluation form in the Google Classroom.