2025 NASS PRELIMS P2 Q9

Mr Sim, a 43-year-old Singaporean, wants to buy a private condominium costing $1.3 million. He owns no property. He has $100 000 in cash, $350 000 in CPF and a foreign fixed deposit worth USD 54 000 at maturity. His monthly car instalment is $500.

Net pay is basic salary excluding employee CPF and donations.

1. Find Mr Sim’s net pay.[1]
2. The chart and table show USD–SGD exchange rates from April to May 2025. Estimate the SGD value of the fixed deposit when it matures in June. Justify your estimate.[2]

   Reference date	Exchange rate
   Lowest rate on \(26\text{ May}\)	\(1\text{ USD}=1.280108\text{ SGD}\)
   Highest rate on \(1\text{ May}\)	\(1\text{ USD}=1.31154\text{ SGD}\)

3. The payment schedule and buyer stamp-duty rates are shown below. Determine the total amount that must be paid in cash for the $1.3 million condominium.[3]

   Fee payable	Percentage of condominium price	Source of funds
   Booking fee	\(5\%\)	Cash
   Signing the purchase agreement	\(15\%\)	CPF
   Buyer stamp duty	Refer below	Cash
   Valuation report	—	\(\$500\) cash
   Legal fees	—	\(\$3000\) cash
   First construction payment	\(5\%\)	Cash / CPF
   Second payment before completion	\(25\%\)	Cash / CPF / bank loan
   Balance on completion	\(50\%\)	Bank loan

   Property-value tier	Buyer stamp-duty rate
   First \(\$180\,000\)	\(1\%\)
   Next \(\$180\,000\)	\(2\%\)
   Next \(\$640\,000\)	\(3\%\)
   Next \(\$500\,000\)	\(4\%\)
   Next \(\$1\,500\,000\)	\(5\%\)
   Remaining amount	\(6\%\)

4. Mr Sim will deplete CPF and cash before borrowing for all payments. A bank loan is limited to 75% of property value, and no more than 55% of basic salary may service the car and housing loans. Assuming simple interest at 3.30% per annum over 20 years, determine whether he can secure the loan. Justify your answer clearly.[6]