ADDITIONAL MATHEMATICS PROJECT WORK 1/ 2016

CONTENTS

Introduction
Part 1
Part 2
Part 3
Further Exploration
Reflection

INTRODUCTION

(a) An arithmetic progression (AP) is a sequence of numbers such that the

difference between the consecutive terms is constant.
A geometric progression is a sequence of numbers where each term
after the first is found by multiplying the previous one by a fixed, nonzero number called the common ratio.

(b)Examples of arithmetic progression in daily life:

Manufacturing situations, where the total quantity of finished

product produced depends on the number of machine cycles
completed

Product pricing, where the total price equals a fixed amount for
shipping and handling plus an amount per unit ordered

Game scores for games with a fixed point value per goal scored

Examples of geometric progression in daily life:

Annual size of a population that is growing (or shrinking) at a

constant rate

Value of money in an account that receives periodic fixed rate

interest payments

Maximum height of a bouncing ball after each bounce (if a fixed

% of its energy is lost on each bounce)

Radioactivity levels of a sample over time

PART 1

(a) (i) Model B gives faster return of the capital

(ii) Model A yields higher profit in 20 years
(b)Model that gives faster return of the capital
Method 1: By using excel/listing

Model A
Mo
nth

profi
t
earn
ed
per
unit

Expect
ed
Avera
ge
month
ly
sales

expecte
d
monthl
y
expendi
ture

Model B
tota
l
pro
fit
per
mo
nth

total
profit
per
capit
al

profi
t
earn
ed
per
unit

Expect
ed
Avera
ge
month
ly
sales

expecte
d
monthl
y
expendi
ture

total
profi
t per
mon
th

total
profit
per
capit
al

550

20

5,000

550

20

5,000

550

20

5,000

550

20

5,000

550

20

5,000

550

20

5,000

550

20

5,000

550

20

5,000

550

20

5,000

10

550

20

5,000

11

550

20

5,000

12

550

20

5,000

13

550

25

5,500

14

550

25

5,500

15

550

25

5,500

16

550

25

5,500

17

550

25

5,500

18

550

25

5,500

19

550

25

5,500

20

550

25

5,500

21

550

25

5,500

22

550

25

5,500

23

550

25

5,500

24

550

25

5,500

25

550

30

6,000

6,00
0
6,00
0
6,00
0
6,00
0
6,00
0
6,00
0
6,00
0
6,00
0
6,00
0
6,00
0
6,00
0
6,00
0
8,25
0
8,25
0
8,25
0
8,25
0
8,25
0
8,25
0
8,25
0
8,25
0
8,25
0
8,25
0
8,25
0
8,25
0
10,5

6,00
0
12,0
00
18,0
00
24,0
00
30,0
00
36,0
00
42,0
00
48,0
00
54,0
00
60,0
00
66,0
00
72,0
00
80,2
50
88,5
00
96,7
50
105,
000
113,
250
121,
500
129,
750
138,
000
146,
250
154,
500
162,
750
171,
000
181,

600

20

5,000

600

20

5,000

600

20

5,000

600

20

5,000

600

20

5,000

600

20

5,000

600

20

5,000

600

20

5,000

600

20

5,000

600

20

5,000

600

20

5,000

600

20

5,000

600

24

5,500

600

24

5,500

600

24

5,500

600

24

5,500

600

24

5,500

600

24

5,500

600

24

5,500

600

24

5,500

600

24

5,500

600

24

5,500

600

24

5,500

600

24

5,500

600

28

6,000

7,00
0
7,00
0
7,00
0
7,00
0
7,00
0
7,00
0
7,00
0
7,00
0
7,00
0
7,00
0
7,00
0
7,00
0
8,90
0
8,90
0
8,90
0
8,90
0
8,90
0
8,90
0
8,90
0
8,90
0
8,90
0
8,90
0
8,90
0
8,90
0
10,8

7,00
0
14,0
00
21,0
00
28,0
00
35,0
00
42,0
00
49,0
00
56,0
00
63,0
00
70,0
00
77,0
00
84,0
00
92,9
00
101,
800
110,
700
119,
600
128,
500
137,
400
146,
300
155,
200
164,
100
173,
000
181,
900
190,
800
201,

26

550

30

6,000

27

550

30

6,000

28

550

30

6,000

29

550

30

6,000

30

550

30

6,000

31

550

30

6,000

32

550

30

6,000

33

550

30

6,000

34

550

30

6,000

35

550

30

6,000

36

550

30

6,000

37

550

35

6,500

38

550

35

6,500

39

550

35

6,500

40

550

35

6,500

41

550

35

6,500

42

550

35

6,500

43

550

35

6,500

44

550

35

6,500

45

550

35

6,500

46

550

35

6,500

47

550

35

6,500

48

550

35

6,500

49

550

40

7,000

00
10,5
00
10,5
00
10,5
00
10,5
00
10,5
00
10,5
00
10,5
00
10,5
00
10,5
00
10,5
00
10,5
00
12,7
50
12,7
50
12,7
50
12,7
50
12,7
50
12,7
50
12,7
50
12,7
50
12,7
50
12,7
50
12,7
50
12,7
50
15,0
00

500
192,
000
202,
500
213,
000
223,
500
234,
000
244,
500
255,
000
265,
500
276,
000
286,
500
297,
000
309,
750
322,
500
335,
250
348,
000
360,
750
373,
500
386,
250
399,
000
411,
750
424,
500
437,
250
450,
000
465,
000

600

28

6,000

600

28

6,000

600

28

6,000

600

28

6,000

600

28

6,000

600

28

6,000

600

28

6,000

600

28

6,000

600

28

6,000

600

28

6,000

600

28

6,000

600

32

6,500

600

32

6,500

600

32

6,500

600

32

6,500

600

32

6,500

600

32

6,500

600

32

6,500

600

32

6,500

600

32

6,500

600

32

6,500

600

32

6,500

600

32

6,500

600

36

7,000

00
10,8
00
10,8
00
10,8
00
10,8
00
10,8
00
10,8
00
10,8
00
10,8
00
10,8
00
10,8
00
10,8
00
12,7
00
12,7
00
12,7
00
12,7
00
12,7
00
12,7
00
12,7
00
12,7
00
12,7
00
12,7
00
12,7
00
12,7
00
14,6
00

600
212,
400
223,
200
234,
000
244,
800
255,
600
266,
400
277,
200
288,
000
298,
800
309,
600
320,
400
333,
100
345,
800
358,
500
371,
200
383,
900
396,
600
409,
300
422,
000
434,
700
447,
400
460,
100
472,
800
487,
400

50

550

40

7,000

51

550

40

7,000

52

550

40

7,000

53

550

40

7,000

54

550

40

7,000

15,0
00
15,0
00
15,0
00
15,0
00
15,0
00

480,
000
495,
000
510,
000
525,
000
540,
000

600

36

7,000

600

36

7,000

600

36

7,000

600

36

7,000

600

36

7,000

14,6
00
14,6
00
14,6
00
14,6
00
14,6
00

502,
000
516,
600
531,
200
545,
800
560,
400

Method 2: Formula
Model A
Monthly profit in first year
= 20 x 550 5000
= 6000
Total profit in first year
= 6000 x 12
= 72000
Monthly profit in second year
= 25 x 550 5500
= 8250
Total profit in second year
= 8250 x 12
= 99000
a = 72000
d = 99000 72000 = 27000
Sn 500000
n
2

n
2

[2 (72000) + (n 1) 27000]

500000
2

27 n

n=

Model B
Monthly profit in first year
= 20 x 600 5000
= 7000
Total profit in first year
= 7000 x 12
= 84000
Monthly profit in second year
= 24 x 600 5500
= 8900
Total profit in second year
= 8900 x 12
= 106800
a = 84000
d = 106800 84000 = 22800
Sn 500000

500000
2

57 n

+ 117n 1000 0
117 1172 4 (27)(1000)
2(27)

n 4.293

[2 (84000) + (n 1) 22800]

n=

+ 363n 2500 0
363 3632 4 (57)(2500)
2(57)

n 4.164

Conclusion: Model A takes 4.293 years/ 52 months to return the capital.

Model B takes 4.164 years/ 50 months to return the capital.
Model B gives faster return of the capital.

Model that yields higher profit in 20 years

Method 1: By using excel/listing

Year

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

Total
profit
per
month
6,000
8,250
10,500
12,750
15,000
17,250
19,500
21,750
24,000
26,250
28,500
30,750
33,000
35,250
37,500
39,750
42,000
44,250
46,500

Model A
Total
profit
Total profit
per
annum
72,000
72,000
99,000
126,00
0
153,00
0
180,00
0
207,00
0
234,00
0
261,00
0
288,00
0
315,00
0
342,00
0
369,00
0
396,00
0
423,00
0
450,00
0
477,00
0
504,00
0
531,00
0
558,00

Total
profit
per
month
7,000

171,000

8,900

297,000

10,800

450,000

12,700

630,000

14,600

837,000

16,500

1,071,000

18,400

1,332,000

20,300

1,620,000

22,200

1,935,000

24,100

2,277,000

26,000

2,646,000

27,900

3,042,000

29,800

3,465,000

31,700

3,915,000

33,600

4,392,000

35,500

4,896,000

37,400

5,427,000
5,985,000

39,300
41,200

Model B
Total
profit
Total profit
per
annum
84,000
84,000
106,80
0
190,800
129,60
0
320,400
152,40
0
472,800
175,20
0
648,000
198,00
0
846,000
220,80
0
1,066,800
243,60
0
1,310,400
266,40
0
1,576,800
289,20
0
1,866,000
312,00
0
2,178,000
334,80
0
2,512,800
357,60
0
2,870,400
380,40
0
3,250,800
403,20
0
3,654,000
426,00
0
4,080,000
448,80
0
4,528,800
471,60
0
5,000,400
494,40
5,494,800

20

48,750

0
585,00
0

6,570,000

43,100

0
517,20
0

6,012,000

Method 2: Formula
Model A
Monthly profit in first year
= 20 x 550 5000
= 6000
Total profit in first year
= 6000 x 12
= 72000
Monthly profit in second year
= 25 x 550 5500
= 8250
Total profit in second year
= 8250 x 12
= 99000
a = 72000
d = 99000 72000 = 27000

S20 =

20
2

[ 2 (72000) + 19 (27000)

Model B
Monthly profit in first year
= 20 x 600 5000
= 7000
Total profit in first year
= 7000 x 12
= 84000
Monthly profit in second year
= 24 x 600 5500
= 8900
Total profit in second year
= 8900 x 12
= 106800
a = 84000
d = 106800 84000 = 22800

S20 =

20
2

[ 2 (84000) + 19 (22800)

=6570000

= 6012000

The profit earned by selling Model A

in 20 years is RM 6 570 000.

The profit earned by selling Model B

in 20 years is RM 6 012 000.

Conclusion : Model A give more yield higher profit in 20 years.

(c) I would advise Samad to choose model A as it will bring a higher profit in
the long run even though it takes longer to return the capital. If Samad
chooses model A, he will be able to reap the benefits of the higher profit
yield. In profit yield for 20 years, Model A earned profit until Rm 6, 570
000.00 while Model B gives RM 6, 012 000.00. The differences between 2
models are RM558,000.00. Then, Model A will bring more higher profit in
20 years.

PART 2
(a)
Option 1
Monthly rental in first year = 1200
Total rental in first year = 1200 x 12
= 14400
Monthly rental in second year
= 1200 x 108%
= 1296
Total rental in second year = 1296 x
12
= 15552
a = 14400
r = 1.08
10

14400( 1.08 1)
s10 =
1.081

= 208606

Option 2
Initial capital = 500000
Capital + dividend after 1 year
= 500000 x 106%
= 530000
Capital + dividend after 2 years
= 530000 x 106%
= 561800
a = 530000
r = 1.06
Capital + dividend after 10 years
9
T10 = 530000 (1.06)
= 895424
Dividend earned in 10 years
= 895424 500000
= 395424

Income yielded in 10 years : RM

208, 606.00

Income yielded in 10 years : RM

395, 424.00

(b)
Option 1
Rental earned in 20 years

S20 =

14400(1.08201)
1.081

Option 2
Capital + dividend after 20 years
19
T20 = 530000 (1.06)

= 1603568

=658972

Dividend earned in 20 years

= 1603568 500000
= 1103568

Income yielded in 20 years : RM

658,972.29

Income yielded in 20 years : RM

1,103,567.74

The further explanations are

Year
1

Monthly
Rental

OPTION 1
Total Monthly
Rental

1200.00

14,400.00

1296.00

15,552.00

1399.68

16,796.16

1511.65

18,139.85

1632.59

19,591.04

1763.19

21,158.32

1904.25

22,850.99

Income
Yield
14,400.
00
29,952.
00
46,748.
16
64,888.
01
84,479.
05
105,637
.38
128,488
.37

Initial
Capital
500,000.00
530,000.00
561,800.00
595,508.00
631,238.48
669,112.79
709,259.56

OPTION 2
Total Profit
+ Dividen
530,000.0
0
561,800.0
0
595,508.0
0
631,238.4
8
669,112.7
9
709,259.5
6
751,815.1
3

Income
yield
30,000.00
61,800.00
95,508.00
131,238.4
8
169,112.7
9
209,259.5
6
251,815.1
3

2056.59

24,679.07

2221.12

26,653.40

10

2398.81

28,785.67

11

2590.71

31,088.52

12

2797.97

33,575.60

13

3021.80

36,261.65

14

3263.55

39,162.58

15

3524.63

42,295.59

16

3806.60

45,679.24

17

4111.13

49,333.57

18

4440.02

53,280.26

19

4795.22

57,542.68

20

5178.84

62,146.10

153,167
.44
179,820
.83
208,606
.50
239,695
.02
273,270
.62
309,532
.27
348,694
.85
390,990
.44
436,669
.68
486,003
.25
539,283
.51
596,826
.19
658,972
.29

751,815.13
796,924.04
844,739.48
895,423.85
949,149.28
1,006,098.2
4
1,066,464.1
3
1,130,451.9
8
1,198,279.1
0
1,270,175.8
4
1,346,386.3
9
1,427,169.5
8
1,512,799.7
5

PART 3
If I am Samad, I would like to choose.

796,924.0
4
844,739.4
8
895,423.8
5
949,149.2
8
1,006,098.
24
1,066,464.
13
1,130,451.
98
1,198,279.
10
1,270,175.
84
1,346,386.
39
1,427,169.
58
1,512,799.
75
1,603,567.
74

296,924.0
4
344,739.4
8
395,423.8
5
449,149.2
8
506,098.2
4
566,464.1
3
630,451.9
8
698,279.1
0
770,175.8
4
846,386.3
9
927,169.5
8
1,012,799.
75
1,103,567.
74

Option 1: motorcycles company for my investment. This is

because in Motorcycle Company I will receive the faster return of
the capital which is before the 5th years investment. Other than
that, within in 10 years, I will receive RM 1,935, 000.00 as a profit
which is give the return of the capital which is RM 500,000.00 and
I already get the net profit after deducted the capital is RM1,
435,000.
In addition, by investment in motorcycles company, I will receive
the largest profit other than another investment which is in 20
years, I will receive RM 6, 570, 000.00 as a total profit and net
profit are RM 6,070,000.00. If I am choosing for condominium as
the investment, I will only get return the capital after 18 th years
after investment. In 20 years, I will only receive RM 658,972.29
as the total profit and the net profit are only RM 158,972,29. For
investment in trust fund investment, I will only receive the capital
back after 12th year in investment and I only receive the income
yield after 20 years are RM 1,103,567.74 not included the initial
capital.
So as a conclusion, the best choices I will make are to invest in
the motorcycles company.
7,000,000.00
6,000,000.00
5,000,000.00
4,000,000.00
Total Profit(RM)

Trust Fund Investment

3,000,000.00

motorcycle's company

2,000,000.00

Apartment investment

1,000,000.00
-

Year

FURTHER EXPLORATION

t
log10N

2
1.76

5
1.85

7
1.93

(a) log10N = (log10 b) t + log10 a

log10 b = 0.035
log10 a = 1.69
b = 1.08
a = 48.98

8
1.97

10
2.05

12
2.1

(b)log10 N = 2.2, from graph

N = 158
(c) 2 =

(1.08)t

t =9

REFLECTION