Economics Answers

ITEMS

Rent for the month 1 200

Sala 4 050

Current account 4 500

Savin account 15 500

S endin on food er month 550

Education loan a ment er month 100

Car 37 800

Credit card balance 700

Car loan a ment er month 690

Household ossession 42 000

Dividend received 2 500

Stereo e ui ment 4 250

Fuel, toll and arkin ex enses er month 300

Contribution er month 100

Home com uter and rinter 5 750

Stock 12 200

Clothin 7 000

Personal ex enses and recreation er month 250

Car loan 5 500

Television 4 500

Utilities bill er month 400

Unit trust investment 2 000

Other ex enses er month 500

4. Table 1 shows the list of the items for Siti for the month of June 2020. Siti needs to save for her staycation next year. She plans to at least have a saving of RM2 250 per month.

a) Based on the above information, help Siti to construct her income statement for June

2020. (8 Marks)

b) Did she manage to achieve her goals? Justify your answer. (2 Marks)

1. Naema's salary for a month is RM7 526. She needs to contribute her salary for income tax.

a) Find her annual salary and compute her average tax rate for year 2019.

Income bracket Tax rates Income Tax owed Avera e tax rate

RMO - RM 20 000 0%

RM20 001 - RM 40 000 14 0/0

RM40 001 - RM 60 000 21 %

RM60 001 and above 24 %

(5 Marks) b) Find the marginal tax rate if her salary increases to RM8,455.

Income bracket Tax rates Income Tax owed Mar inal tax rate

RMO - RM 20 000 0%

RM20 001 - RM 40 000 14 %

RM40 001 - RM 60 000 21 %

RM60 001 and above 24 %

(5 Marks)

[Total: 10 Marks]

Rent for the month 1 200

Sala 4 050

Current account 4 500

Savin account 15 500

S endin on food er month 550

Education loan a ment er month 100

Car 37 800

Credit card balance 700

Car loan a ment er month 690

Household ossession 42 000

Dividend received 2 500

Stereo e ui ment 4 250

Fuel, toll and arkin ex enses er month 300

Contribution er month 100

Home com uter and rinter 5 750

Stock 12 200

Clothin 7 000

Personal ex enses and recreation er month 250

Car loan 5 500

Television 4 500

Utilities bill er month 400

Unit trust investment 2 000

Other ex enses er month 500

4. Table 1 shows the list of the items for Siti for the month of June 2020. Siti needs to save for her staycation next year. She plans to at least have a saving of RM2 250 per month.

a) Base…

a) You have RM 33 750 in a brokerage account, and you plan to have an account totals

RM 72 863.72. You expect to earn 8% annually on the account. How many years will it take to reach your goal? (3 Marks)

b) If you deposit RM 27 590 in a bank account that pays 13% interest annually, how much will be in your account after 7 years? (2 Marks) c) How long does it take to double your money, given the interest rate is 10%? (2 Marks)

d) Find the amount to which RM 4000 will grow if it is 11% compounded quarterly for 7 years. (3 Marks)

e) It is now January 1 st 2015, and you will need RM 55 570 on January 1 st 2019, in 4 years. Your bank compounds interest at an 7% annual rate.

i) How much must you deposit today to have balance of RM 55 500 on January 1 st

2019? (2 Marks)

ii) How much do you have to deposit today if the bank uses semi-annually compounding? (3 Marks)

. Why does productivity matter for living standards? 2. What sort of public policy should Pakistan adopt to ensure growth and improved living standards? 3. What issues may hinder growth and long run living standards in Pakistan? 4. Is Pakistan stuck in a poverty trap? How can we get out of it in the long run? 5. Is Pakistan in a recessionary or growth phase of a business cycle? Justify your answer with reasoning. 

pakistan has been facing unemployment issues for decades now. You are the Minister of Finance and have been given a task to reduce the unemployment rate in Pakistan. What measures will you take and why? What outcome is expected from those actions?

You have been appointed as the Governor- State Bank of Pakistan. Your first task is to identify recent issues in the economy that can be resolved by the State Bank and mention, how will you resolve them using monetary tools? 

 analyze IMF program that we are currently in, namely Extended Financing Facility of USD 6billion. What are the conditions of IMF and how can Pakistan fulfil those conditions? 

All normal goods whether they are economics goods , services or simply leisure will always

have IE and SE move in the same direction. True , False or Uncertain.

A company’s cost of equity is 21 percent and the before tax cost of debt is 14 percent. It has a

net worth of INR3400 crore and borrowings of INR1360 crore. The market capitalization of the

company is INR 5100 crore. The tax rate is 30 percent. What is the Weighted Average Cost of

Capital? What is a risk-free rate and its application in Valuing a Firm?