2010

STARTED WITH A BUSINESS

MUHAMMAD MUSTAKIM BIN A

RAHIM
MANAGER
11
[WARISAN RMN]
Contents

• Introduction

• Task Specification

• Conjectures

• Problem Solving : Part 1

• Problem Solving : Part 2

• Verification

• Further Exploration

• Conclusion

• Reflection

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INTRODUCTION

Warisan RMN is a company that conduct business of selling computer

components. It was esblished in Januari 2008. This company offer for the
community a new brand of computer components that are good in quality
and durable.

Warisan RMN has own mission which is to be the leading among the
company that also sells the computer components in year 2015. This mission
set up the company to work harder in order to achieve it mission.

Besides, this company had set up some objectives as progress markers

along the way to goal achievement. First is to have a successful company that is
a leader in customer service and that has a loyal customer following. Second is
to get maximum profit from selling the computer components. Third is to have a
healthy competition among the manufacturer company.

Next one is about the Business Philosophy. This company has set the
‘Customer is always right’ as the philosophy and whatever the customer
comments or unsatisfied about our services, we take that as the positive
feedback and try to turn over a new leaf.

Then, Warisan RMN has set the targets to sell it products to every layer of
community because everyone using the computer in daily life to make works
and so on. If capable, this company also wants to market the products to world
market and be the best among the manufacturer company and not just in
Malaysia only.

Futhermore, this products always got positive feedback from the customer
and the growth for this products always increase by time in line with
technology improvements. So, this golden opportunity should be wisely use
by our company in order to gain the maximum profit.

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TASK SPECIFICATION

This task is actually focus on several elements as the key to solve all
the problems asked. First, on task 1 it asked to find the relationship between
demand, d, and the selling price, s, of the computer component by plotting
the graph. Then, interpret the graph, make discussion and write on a brief
explanation on the relationship between the demand and the selling price of
the computer components manufactured by Warisan RMN. Second one in
task 1 is about express the yearly profit, P, in terms of the selling price, s and
make some comment about it. Next, to find out the maximum profit and the
corresponding selling price of computer components by using two or more
methods like using completing the square and differentiation. Lastly in task 1
is about to find out the number of the computer components to be
manufactured by the Warisan RMN in order to gain maximum profit from
selling it product.

After finished in task 1, switch to task 2. Focus in task 2 is about loan.

In year 2009, Warisan RMN made a profit of RM200 000 and intends to
increase its production in year 2010. So, as the manager of Warisan RMN,
need to decide on the amount of loan and the period of the loan to be taken
for that purpose. Then, the first focus in task 2 is about the calculation on
the total amount of interest incurred for each of repayment period and their
corresponding amount of loan. Next focus in task 2 is about calculation of the
average interest rate per month from the loan. Tabulate the results and
make some comment about it. Then, make tabulation on the amount of
yearly repayment for the loan taken of repayment period up to 5 years from
RM10 000 to RM100 000. Futhermore, this focus also required to show that
the annual payment for loan amount of RM10 000,RM15 000,RM20 000 and
so on in form of progression by observing the total amount payment for 12
months. Fourth focus is about to find out the maximum amount of loan, in
multiples of RM5000 for the each choice of repayment period: 1 year, 2
years, 3 years, 4 years and 5 years. After that, need to find out the loan
option should the Warisan RMN take and make some elaboration for that
reason. Lastly focus in task 2 is find out about the amount of the reserve
fund at the each month until 31st December 2010 by assuming that the bank
gives an annual interest of 2.5% for the Warisan RMN reserve fund of RM50
000 in a bank.

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CONJECTURE

Warisan RMN has own goal which is to gain highest profit by selling it
products to community. We aim to reach the target by reduce the cost of
production the computer components but maintain it quality. This is hard to
do because so many risk needed to handle it up. All this up depends on
demand, if the demands higher our company can get the maximum profit
but if don’t our company will sick.

Then, our company need to have a strategic plan in order to get the
maximum profit by selling our product. There are many challenge outside
because there are too many company had manufactured the computer
components, not just our company but only different on it brands. The
customer must select the product that have good quality and the cheapest
one. We will try our best in our product in order to give satisfied to the
customer. Remember this slogan..’Customer is always right’ and we as the
seller need to give them the best services. If our products is good and best,
customer must came again next time and maybe with their friends. In this
way, our company can reach for our goal soon.

Besides, the demand for this products always increasing as fast as the
technology today. In this modern life, everyone will use computer to make
work because it is easy and comfortable to use. So, if our company take this
goden opportunity and fulfill the demand of customer, just imagine how
much that our company can gain from it selling. Just be at the right time and
place and then sell the product.

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 Strategy

Part 1

(a)

The graph shows estimated yearly demand against selling price for a unit of
computer components.

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From the graph, we can conclude that :

-The graph shows when the price of the computer component at price RM 75,
it demands at highest value, 4500 units. Beside that, when the price of
computer component increase to RM 125, it demands become decrease to
3500 units. It demands keep show decreasing at 2000 units when the prise
of the computer component increase to RM 200. Then, when the price is
increasing to RM 250, its demands show the lowest value of demand, 1000
units. So, relationship between the demand and the selling price of the
computer components is negative. The higher its price, the lower its
demand. The graph also shows the selling price and demands are inversely
propotional.

-Next, the graph also shows only they with high income can get the best
things even it price is expensive while the people with moderate income can
get that things also but in low price.

-Thus, to become fair to everyone, decrease it selling price but maintain it

good quality so that the demand will increase and Warisan RMN will get the
highest profit.

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(b)

-If the production cost of the computer component is RM 50 per unit, yearly
profit, P, can be expressed in terms of the selling price, s, as shown below:

For 1 unit of the particular type of computer component :-

Cost of 1 unit = RM 50

Selling price of 1 unit = s

Hence, profit gained of 1 unit sold, P = s – 50

(total profit = total sales – total cost )

For d unit of the computers sold :-

Profit gained = ?

To simplify this relation :

1 unit s - 50

P unit d/1 x s – 50

Hence, P = d(s – 50) 1

But from the graph in the previous, the straight line relating to the variables
of d and s :

Take the point (75,4500) (250,1000) and then find the gradient :

gradient/m = 4500 - 1000

Comment :
75 - 250
P is a quadratic function in terms
= -20 of s.

c/Y-intercept is can take from the graph=6000

Then, form the linear equation of the graph:

Y=mx+c

D=-20s + 60000 2

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Substitute equation 2 into 1 :

P = ( -20s + 6000 )( s – 50 )

P = -20( s – 300 )( s – 20 )#

So, this equation is made to easy for our company to find out the profit
that our company will get soon.

(c )

Besides, there are another methods that can be use to find out the
maximum profit and the corresponding selling price of the computer
components. First is by using differentiation and second one by using
completing square.

Method 1 ( by differentiation ) :

P = -20(s – 300)( s – 50)

= [-20( s – 300) ][s – 50 ]

By using the product rule :

Dp

= [-20( s – 300)][ 1 ] + [ s -50 ] [ -20 ]

Ds

= -20s + 6000 -20s + 1000

= -40s + 7000

Let dp

= 0 , hence -40s + 7000 = 0

Ds 40s = 7000

S = 7000⁄4 = 175

D2p

2
 = -40 ( <0 ) hence, maximum value.

Ds2

Hence, maximum P when s = 175 = -20 ( 175 – 300)( 175 – 50)

= -20(-125)(125)

= RM 312 500

Method 2 (by completing square ) :

P = -20 ( s – 300 )( s- 50)

= -20 ( s2 – 50s – 300s + 15000 )

= -20 ( s2 -350s +15000 )

= -20 [ s2 – 350 s + ( -350 . ½ )2 + 15000 – ( -350 . ½ )2 ]

= -20 [ ( s – 175 )2 + 15000 – ( - 175)2 ]

= -20 [ ( s – 175 )2 + 15000 – 30625 ]

= -20 [(s – 175 )2 – 15625 ]

=-20 ( s- 175 )2 + 312 500

Since a = -20 ( < 0 ) ,

Hence, P is a maximum value of 3125000 at s = 175 #

Those methods also can be used in order to find out the maximum
profit and the corresponding selling price of the computer component by
Warisan RMN.

(d)

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 In order to gain the maximum profit from the selling our product,
Warisan RMN must determine the number of the computer components that
needed to be manufacted. This decision needed to be carried out carefully
because can effect the whole of our selling. This is can be done by using
formulae as shown below:

From the equation of d = -20s + 6000,

When s = 175 ( from the part c , max P = 312 5000 when s = 175 ) :

D = -20 ( 175 ) + 6000

= - 3500 + 6000

= 2500 #

So, 2500 units of computer component needed to manufacture in order to

get the maximum profit from selling it by Warisan RMN.

PART 2

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a)

Warisan RMN has made a profit of RM200 000 in year 2009 and
intends to increase its production in year 2010. I’m as the manager of
Warisan RMN need to take the right decision from which bank I must get the
loan.The table below shows total amount of loan and it total interest incurred
for 5 years from Bank A.

Total Loan Total Interest Incurred(RM)

RM
12 Months 24 Months 36 Months 48 Months 60 Months

10 000 2408 4808 7208 9632 12 020

20 000 4804 9616 14 416 19 216 24 040

30 000 7200 14 400 21 624 28 800 36 000

40 000 9608 19 208 28 832 38 432 48 020

50 000 12 004 24 016 36 004 48 016 60 040

b)

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 The table below shows the calculation on the average interest rate per
month from Bank A.

Average interest per month = ÷ n months

Total Loan Average Interest Rate Per Month

(RM) 12 Months 24 Months 36 Months 48 Months 60 Months
0.0200666 0.0200333 0.0200222 0.0200666 0.0200333
10 000
7 3 2 7 3
0.0200166 0.0200333 0.0200222 0.0200166 0.0200333
20 000
7 3 2 7 3
0.0200222
30 000 0.02 0.02 0.02 0.02
2
0.0200166 0.0200083 0.0200222 0.0200166 0.0200083
40 000
7 3 2 7 3
0.0200066 0.0200133 0.0200022 0.0200066 0.0200133
50 000
7 3 2 7 3

Table shows the average interest rate per month for every amount of loan. Based on this
table, we can see that each loan of the same period of payment seems to have the almost same
average interest rate per month.

The table shows balance interest that imposed to the loan taken from
Bank A. It shows that the rate of interest matching by another up to 5 years.
It also shows for every RM 10 000 of loan increase, the interest of loan also
increase at RM200++.

c)

The table below shows the tabulatation of the amount of yearly payment for
each choice of repayment period up to 5 years for loan amounts from RM 10
000 to RM 100 000 and the next table shows the annual payment for all
amount of loans in form of progression.

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 Monthly Payment (RM)
Total Loan (RM)
12 Months 24 Months 36 Months 48 Months 60 Months
10 000 12408 7404 5736 4908 4404
15 000 18600 11100 8604 7356 6600
20 000 24804 14808 11472 9804 8808
25 000 31008 18504 14340 12252 11004
30 000 37200 22200 17208 14700 13200
35 000 43404 25908 20076 17160 15408
40 000 49608 29604 22944 19608 17604
45 000 55800 33300 25800 22056 19800
50 000 62004 37008 28668 24504 22008
55 000 68208 40704 31536 26952 24204
60 000 74400 44400 34404 29400 26412
65 000 80604 48108 37272 31860 28608
70 000 86808 51804 40140 34308 30804
75 000 93000 55500 43008 36756 33000
80 000 99204 59208 45876 39204 35208
85 000 105408 62904 48732 41652 37404
90 000 111600 66600 51600 44100 39600
95 000 117804 70308 54468 46560 41808
100 000 124008 74004 57336 49008 44004

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 Loan Annual payment (RM)
12 months
Amount

(RM)
10 000 1034 x 12 = 12408
15 000 1550 x 12 = 18 600
20 000 2067 x 12 = 24804
25 000 2584 x 12 = 31008
30 000 3100 x 12 = 37200
35 000 3617 x 12 = 43404
40 000 4134 x 12 = 49608
45 000 4650 x 12 = 55800
50 000 5167 x 12 = 62004
Annual Payment (RM) for each loan amount

Then, from the table we can observe that each consecutive terms give

common difference of 6204 or 6192 .

18 600 – 12 408 = 6 192 43 404 – 37 200 = 6 204

24 804 – 18 600 = 6 204 49 608 – 43 404 = 6 204

31 008 – 24 804 = 6 204 55 800 – 49 608 = 6 192

37 200 – 31 008 = 6 192 62 004 – 55 800 = 6 204

It shows the pattern like shown below :

6192, 6204, 6204, 6192, 6204, 6204, 6192, 6204, 6204, and so on. This
shows that the annual payment of loan form an arithmetic progression.

d)1-

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 Since that the company allocated only 20% of the profit made in the

year 2009 on loan repayment, means that only RM 40 000 allocated on loan

repayment.

100% RM 200 000

20% of the profit made in the year 2009 20% x RM 200 000 = RM
40 000 to repay loan

Amount

Total
Yearly Repayment
Loan
2 3 4 5
(RM) 1 year
years years years years
10000 12408 7404 5736 4908 4404
15000 18600 11100 8604 7356 6600
20000 24804 14808 11472 9804 8808
25000 31008 18504 14340 12252 11004
30000 37200 22200 17208 14700 13200
35000 43404 25908 20076 17160 15408
40000 49608 29604 22944 19608 17604
45000 55800 33300 25800 22056 19800
50000 62004 37008 28668 24504 22008
55000 68208 40704 31536 26952 24204
60000 74400 44400 34464 29412 26400
65000 80604 48108 37272 31860 28608
70000 86808 51804 40140 34308 30804
75000 93000 55500 43008 36756 33000
80000 99204 59208 45876 39204 35208
10540
85000 62904 48732 41664 37404
8
11160
90000 66600 51600 44112 39600
0
11780
95000 70308 54465 46560 41808
4
12400
100000 74004 57336 49008 44004
8
Annual payments of loan amount

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 2-

As we only allocated RM 40 000 for loan repayment, the maximum

amount of loan that we should take is RM 30 000 for a year of repayment

period. Then for 2 years repayment period, we should take RM 50 000. For 3

years repayment period, we should take RM 65 000 meanwhile for 4 years

repayment, we should take RM 80 000. Lastly for 5 years repayment, we

should take RM 90 000.

e)

As the Warisan RMN has set aside a reserve fund of RM 50 00 in a bank

and earns monthly interest beginning 1st January 2010 and got 2.5% of

annual interest.

So..

Monthly interest = ÷ 12 × RM50 000

Tn = a + (n – 1)d

n= Months
a = RM50 000

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d=

T1 = RM50 000
T2 = RM50 000 + T8 = RM50 000 + (7 × )
= RM50 104.17 =RM50 729.17
T3 = RM50 000 + (2 × ) T9 = RM50 000 + (8 × )
= RM50 208.33 = RM50 833.33
T4 = RM50 000 + (3 × ) T10 = RM50 000 + (9 × )
= RM50 312.50 = RM50 937.50
T5 = RM50 000 + (4 × ) T11 = RM50 000 + (10 × )
= RM50 416.67 = RM51 041.67
T6 = RM50 000 + (5 × ) T12 = RM50 000 + (11 × )
= RM50 520.83 = RM51 145.83
T7 = RM50 000 + (6 × ) T13 = RM50 000 + (12 × )
= RM50 625 = RM51 250.00

Thus, the amount of reserve for each month is:

• January = RM50 104.17
• February = RM50 208.33
• March = RM50 312.50
• April = RM50 416.67
• May = RM50 520.83
• June = RM50 625.00
• July = RM50 729.17
• August = RM50 833.33
• September = RM50 937.50
• October = RM51 041.67
• November = RM51 145.83
• December = RM51 250.00

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ANALYSIS

At the end, my conjecture is right because Warisan RMN gain the

maximum

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FURTHER EXPLORATION

As the manager, I also had survey to other financial sources available

in the market that may be utilized by the Warisan RMN for capital investment
like Islamic loan. Islamic loan is based on Islamic banking that are very differ
with conventional banking. This is because they are extremely different in
many ways. The key difference is that Islamic Banking is based on Shariah
foundation. Thus, all dealing, transaction, business approach, product
feature, investment focus, responsibility are derived from the Shariah law,
which lead to the significant difference in many part of the operations with
as of the conventional.

The foundation of Islamic bank is based on the Islamic faith and must
stay within the limits of Islamic Law or the Shariah in all of its actions and
deeds. The original meaning of the Arabic word Shariah is 'the way to the
source of life' and is now used to refer to legal system in keeping with the
code of behaviour called for by the Holly Qur'an (Koran). Amongst the
governing principles of an Islamic bank are :

* The absence of interest-based (riba) transactions;

* The avoidance of economic activities involving oppression (zulm);

* The avoidance of economic activities involving speculation (gharar);

* The introduction of an Islamic tax, zakat;

* The discouragement of the production of goods and services which

contradict the Islamic value (haram).

On the other hand, conventional banking is essentially based on the

debtor-creditor relationship between the depositors and the bank on one
hand, and between the borrowers and the bank on the other. Interest is
considered to be the price of credit, reflecting the opportunity cost of money.

Islamic law considers a loan to be given or taken, free of charge, to

meet any contingency. Thus in Islamic Banking, the creditor should not take
advantage of the borrower. When money is lent out on the basis of interest,
more often that it leads to some kind of injustice. The first Islamic principle
underlying for such kind of transactions is "deal not unjustly, and ye shall not
be dealt with unjustly" [2:279] which explain why commercial banking in an
Islamic framework is not based on the debtor-creditor relationship.
2
 The other principle pertaining to financial transactions in Islam is that
there should not be any reward without taking a risk. This principle is
applicable to both labor and capital. As no payment is allowed for labor,
unless it is applied to work, there is no reward for capital unless it is exposed
to business risk.

Thus, financial intermediation in an Islamic framework has been

developed on the basis of the above-mentioned principles. Consequently
financial relationships in Islam have been participatory in nature.

Lastly,the unique features of the conventional banking and Islamic

banking are shown in terms of a box diagram as shown below:-

2
Conventional Banks
1. The functions and operating modes
of conventional banks are based on
fully manmade principles.
2. The investor is assured of a
predetermined rate of interest.
3. It aims at maximizing profit without
any restriction.
4. It does not deal with Zakat.
5. Lending money and getting it back
with compounding interest is the
fundamental function of the
conventional banks.
6. It can charge additional money
(penalty and compounded interest) in
case of defaulters.
7. Very often it results in the bank's
own interest becoming prominent. It
makes no effort to ensure growth with
equity.
8. For interest-based commercial
banks, borrowing from the money
market is relatively easier.
9. Since income from the advances is
fixed, it gives little importance to
developing expertise in project
appraisal and evaluations.
10. The conventional banks give
greater emphasis on credit-worthiness
of the clients.
11. The status of a conventional bank,
in relation to its clients, is that of
creditor and debtors.
12. A conventional bank has to
guarantee all its deposits.
Islamic Banks
1. The functions and operating modes
of Islamic banks are based on the
principles of Islamic Shariah.
2. In contrast, it promotes risk sharing
between provider of capital (investor)
and the user of funds (entrepreneur).
3. It also aims at maximizing profit but
subject to Shariah restrictions.
4. In the modern Islamic banking
system, it has become one of the
service-oriented functions of the
Islamic banks to be a Zakat Collection
Centre and they also pay out their
Zakat.
5. Participation in partnership business
is the fundamental function of the
Islamic banks. So we have to
understand our customer's business
very well.
6. The Islamic banks have no provision
to charge any extra money from the
defaulters. Only small amount of
compensation and these proceeds is
given to charity. Rebates are give for
early settlement at the Bank's
discretion.
7. It gives due importance to the
public interest. Its ultimate aim is to
ensure growth with equity.
8. For the Islamic banks, it must be
based on a Shariah approved
underlying transaction.
9. Since it shares profit and loss, the
Islamic banks pay greater attention to
developing project appraisal and
evaluations.
10. The Islamic banks, on the other
hand, give greater emphasis on the
viability of the projects.
11. The status of Islamic bank in
relation to its clients is that of
partners, investors and trader, buyer
and seller.
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12. Islamic bank can only guarantee
deposits for deposit account, which is
based on the principle of al-wadiah,
thus the depositors are guaranteed
 Beside that, there some views about advantages and disadvantages of
the Islamic Loan.

First one is about its advantages Islamic banking and financing is not
centered only on credit worthiness and ability to repay the loans and
interest; instead the worthiness and profitability of a project are the most
important criteria of Islamic financing while the ability to repay the loan is
sub-segmented under profitability.

One of the unique and salient characteristics of Islamic banks is

that the integration of ethical and moral values with its banking operation.
The ethical and moral consideration of Islamic banks cannot be detached and
their behavior should be consistent with the moral and ethical standards laid
down by the Islamic Shari'ah.

Unlike the conventional banks, the financing of Islamic banks are

restricted to useful goods and services and refrain from financing alcoholic
beverages and tobacco or morally unacceptable services such as casinos
and pornography, irrespective of whether or not such goods and services are
legal or not in a given country.

In contrast with conventional banks, Islamic banks do not consider

only the credit worthiness and interest rate as standards; instead they must
apply Islamic moral/ethical criteria in their provision of financing. This adds
another merit for Islamic banks since there is a benefiticial impact on the
productivity in the economy as it reduces the social and economic cost of
such harmful products and activities.

Another important characteristic which forms the basis for the

development of Islamic banks is the relationship with depositors. They deal
with their customers on investment grounds rather than a pre-determined
fixed interest rate. They invest the money of their depositors on high
profitable projects after going through a strategic analysis in order to give a
substantial return to their depositors.

Thus in Islamic banking industry, each bank will attempt to out-

perform other banks if it wants to attract funds from investors. And the
ultimate result is that a high return on investments for the investors, which is
unlikely in a conventional bank where it deals with their depositors on a pre-

2
determined fixed interest rate.

Furthermore Islamic banks eliminate the barrier between those who

save and those who invest, and bring them closer to the real market. The
nature of the financial intermediation of Islamic banks significantly defers
from conventional banks and it is in harmony with real market and
developmental changes in it.

It is important to highlight some of the challenges faced by the Sri

Lankan Islamic banks. Although there are many, the most important
challenges are the lack of Islamic banking professionals and the lack of
Shari'ah scholars who have specialized in Islamic economics. Further the
Shari'ah board should have a fair influence on the bank's operational and
strategic planning. For this process to be successful, the Shari'ah boards of
our Islamic banks should absorb Islamic scholars based on their technical
expertise rather than their popularity.

Second one is about it disadvantages. Almost every bank today in

Malaysia have Islamic financial/banking section. Is the popularity due to the
demand of customers or there is some hidden agenda behind it? That's what
we are going to look at in this article. Many would be surprise once the truth
is revealed.

Today we could see many are talking about Malaysia being the No.1
Islamic financial hub in the world. It is something we all should be proud of.
Yet, many still do not know how it actually works. Many assumes since its
Islamic, it means the rates should favor the people and not the bank. Many
thinks it's a pure form of investment. Yet, there are something in it which
everyone should be watching out for which could diarrhoea your money.
Here is why?

Conventional loan uses principal or balance reducing method to

calculate your interest. This means that the interest is charged based upon
your principal balance every year. The principal will reduce whenever you
make a payment. Every time you make a monthly payment, you are actually
paying interest and reducing the principal with whatever left after paying
interest. So, making extra payment to your loan at any times would
definitely reduce the total interest charged as your principal is reduced.

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 Islamic loan is calculated exactly like your car hire purchase loan. The
interest (even thou that's not what they are calling it;they call it profit rate)
is charged on the borrowed principal amount times the number of years up
front. What does this mean? It means you are paying a lot more interest on
your loan. Not just that, paying any additional payment amount will not
reduce your total interest as it's already charged up-front, even thou they
have some rebate when you have finish paying your loan earlier. But, the
rebate is useless as the bank have already charged most of the interest at
the beginning.

Here are some illustrations to compare conventional loan and Islamic loan.

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 Check out this table to make comparison between conventional loan and
Islamic loan.

No
wonder
all banks, including those foreign origin such as HSBC and Standard
Charterted are rushing to open Islamic financial service. The amount of profit
they could earn is unbelievable. They could earn double compared to
conventional loan. This is really unfair to the people. By right they should be
charging less than 5% for Islamic loan to make it equivalent to conventional
loan. Let's see what is the true effective interest rate for the Islamic loan.
Hope nobody will get heart attack after looking at the figure.

A 5% interest (profit rate) for a 10yrs Islamic loan is equivalent to.... Roll the
drum...

There's nothing wrong with your eye. It is 29.97%. It just like a hire
purchase loan, the shorter your loan tenure the lower the effective interest
rate, and the longer the tenure the higher the effective interest rate. So, just
imagine those who have taken Islamic housing loan 30 years. They would be
paying through their nose.

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 Who's fault is it? Is it the religion itself at fault? No.It have nothing
wrong with the religion. It's the greedy corporate trying to suck all the
money out of you by showing innocent faces at you. There is nothing wrong
with the concept. They just need to charge a lower profit.

CONCLUSION

After doing research,answering questions,drawing graphs and some

problem solving, I realise that the usage of additional mathematic is
important in daily life. It is not just widely used in teaching but also at all
every aspect in life whether we realise or not. About this project, overall
it quite interesting because I need to plan it carefully because it about
future. It starts from making the relationship between the demand and
the selling price of the computer component followed by express the
yearly profit in terms of selling price. Then find the maximum profit from
the selling computer components and determine the number of the
products to be manufactured by the company in order to gain maximum
profit.

Apart from that, in part 2 is all about loan. The rate of interest,
repayment of the loan and which loan to be taken for the company. It so
good because followed step by step. Then about further exploration is
good session because can open my mind about banking in Malaysia. I
also got some new information that I never know before after doing
some research about other commercial loans or others financial sources.

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REFLECTION

After spending countless hours,day and night to finish this Additional

Mathematics Project,here is what I got to say:

Doing this project makes me realize how important Additional

Mathematics is in our daily life and completing this project makes me realize
how fun it is and likable is Additional Mathematics. Besides, I had learned
many moral values that I practice. This project had taught me to think
rationally on doing something because can effect the future . Remember..let

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the mind first before your act. I also learned to be calm and a lot of patient
for solving the problem asked.

Besides, this project prepared me for be more confident on answering

question even thou I got the weird and so on answer but it give me confident
to answer it, I become more brave. I also be exposure to do assignment
when I entering the university soon.

Lastly, not much that I can say about this project but I can expressed it
like the picture below…