Hi all,

I'm considering paying the full amount of PTPTN to grab the discount of 15% given by our beloved government by using KWSP Account 2. After the workout which seems like not worth doing so? here is my calculation

Here is my calculation:-
PTPTN amount of RM 38,500.00
Monthly payment RM 245.50 (RM 212.92 payment and RM 34.58 interest)
Full payment to save RM 5,775.00 (15% from RM 38,500)

If monthly stick to the monthly pre-payment required 181 months (RM 38,500.00 / RM 212.92 = 181 months equivalent to 15 years) to clear the PTPTN.

With this 15 years, KWSP Account 2 compound interest of 5.5% p.a (assumption) will be earned about RM 49,200.00.

In order to save you RM 12,033.98 (RM 5,775.00 plus RM 6,258.98 (RM 34.58 x 181 Months)). You're losing RM 37,166.02 (RM49,200.00 - RM 12,033.98)

Meaning to say, it's not worth clearing PTPTN using KWSP Account 2. Any sifu can enlighten me? Just a simple calculation.

I am sure you have also heard failed business also done with investors or debt.

Every successful or failed business is because of many reasons.

When one expand business, expenses DEFINITELY will tag along. A simple analogy of increasing production and employing another staff ...salary have to be paid !

I am not sure how one can expand business without cost / expenses.

This here is a good example of why accountants do not make good businessman

while waiting for his reply,
i think maybe he is refering to
if based on accountant POV,...everything must be justify for its ROI (as mentioned in your earlier post)

if based on business man,....it could be something not foresee able now after investing the sump of money,...
like products promotions, entertainment of clients, marketing analysis & surveys, products research & redevelopment, actions items after the study & research of the SWOT analysis, etc etc....
which may NOT have tangible results or may not even get returns on the sum invested....

Businessman can seldom be accountant and vice versa. Difficult to find a person in between.

One is a risk taker, the other cautious based on theory.