These eight questions use one invented case. Dapur Kek Nurul needs RM24 000 to open: RM18 000 equipment and RM2 000 deposit in month 1, and RM4 000 of stock in month 2. The owner has RM9 000 in savings and each monthly surplus of RM1 200.
The limits are: borrow at most RM15 000, keep a reserve of RM3 000, and open within 3 months. Try each question before opening the answer.
Questions
Q1. How much cash is needed in month 1? Show the check that the parts add up.
Answer
Month 1 = 18 000 + 2 000 = RM20 000. Month 2 adds stock of RM4 000, so 20 000 + 4 000 = 24 000, which matches the total. See amount needed versus purpose and timing.
Q2. Which of the three needs suits short-term finance, and why?
Answer
The stock. It is a running cost, needed for weeks and repeated, so it can be covered from sales. The equipment and deposit are paid once and benefit the shop for years.
Q3. The supplied loan is RM15 000 at a flat 6% a year over 3 years. Find the total repaid and the monthly payment.
Answer
Interest = 15 000 × 6% × 3 = RM2 700. Total = RM17 700. Monthly = 17 700 ÷ 36 = RM492 to the nearest ringgit.
Q4. Does the Q3 payment fit the surplus? By how much?
Answer
Yes. The surplus is RM1 200 and the payment is RM492, so there is room of 1 200 − 492 = RM708 each month.
Q5. A student adds: “Banks usually charge 4%, so the loan is cheaper.” Why does this weaken the answer?
Answer
The 4% is not supplied by the case, so the figure is unsupported and the claim may be wrong. Use the supplied 6%. See comparing options using supplied terms.
Q6. The oven can be bought for RM18 000 or leased at RM600 each month for 36 months. Find the cash left from savings after month 1 for each, and the lease total.
Answer
Buy: 9 000 − 18 000 = −RM9 000. Lease: 9 000 − 600 = RM8 400. Lease total = 36 × 600 = RM21 600, which is RM3 600 above the purchase price.
Q7. Explain in two sentences why leasing may still suit the owner despite the higher total.
Answer
“Leasing keeps RM8 400 in cash after month 1, whereas buying leaves the bakery RM9 000 short. Although leasing costs RM3 600 more over 36 months, it lets the bakery open without borrowing the full amount.” The idea is from buying versus leasing.
Q8. Test this recommendation against the three limits: borrow RM15 000 and use RM9 000 of savings. Repair it if it fails.
Answer
Borrowing RM15 000 is within the limit. Opening within 3 months passes. Reserve = 9 000 − 9 000 = RM0, which is below RM3 000, so it fails.
Repair: cut equipment by RM4 000 to reduce the need to RM20 000. Borrow RM15 000 and use RM5 000 of savings, leaving RM4 000, which passes. See checking a recommendation against constraints.
If you got these wrong
Q1 and Q2 belong to amount needed versus purpose and timing. Q3 to Q5 need supplied terms.
Q6 and Q7 use buying versus leasing. Q8 uses the constraints check.
The mistake log and the timed practice builder help you repeat and track. For teacher support, see online one-to-one Business tuition.