Comments on: Credit Card Debt - May be It Is our lousy Mathematic Skills (Part 1)!

By: Freeman

Freeman — Fri, 08 Feb 2008 22:44:35 +0000

1. 63%
2. 23.5 years
3. RM10600
4. Wrong, short term loan usually come with high interest and it’s a fix rate. It depends on how much you loan also.

By: KCLau

KCLau — Sat, 02 Feb 2008 09:05:43 +0000

a) the dividend rate is 5% per annum. If you are asking the total dividend we’ll get in 10 years, it is 63%.

b) 23.45 yrs

c) anything below RM10,800 is acceptable to me.

d) Wrong - normally short term loan is offered with higher interest compared to long term one.

By: vai

vai — Thu, 31 Jan 2008 16:40:33 +0000

Not too sure with my answers but do correct me if I go wrong.

1)I think EPF interest are compounded per annum, but I am not too sure if its simple interest.If its compound interest, even at 5%, we will get more than what we actually get in the first year in the later year, as we earn interest on the interest that we gain from the previous period. So calculating 5% at the present value of the money which we have with EPF multiply by 10 years will underestimate the true value of what we will get.

2)Will take 23.45 years assuming that the interest is compounded p.a.

3)say at r of 5%, u pay back 10500

4)Wrong, the interest charge is the same. Unless that particular bank actually charge lesser interest for short term loan.