COURSE : MATHEMATICS WITH BUSINESS APPLICATIONS

COURSE CODE : MAT111

STUDENT NAME : EMELDA ENTELA AJANG
STUDENT ID : 2021545313
GROUP : QABA2
QUESTION 1

Vanessa wishes to buy a new refrigerator listed at RM1,499 as shown in Figure 1 through an instalment scheme
with RM299 as down payment and 15% flat rate. She has the choice of settle the payment by making 6
monthly payments, 12 monthly payments, 24 monthly payments and 36 monthly payments

a) Calculate the instalment price according to 6, 12, 24 and 36 monthly payments

6 Months 12 Months 24 Months 36 Months

CP = 1499 CP = 1499 CP = 1499 CP = 1499
DP = 299 DP = 299 DP = 299 DP = 299
r = 15% = 0.15 r = 15% = 0.15 r = 15% = 0.15 r = 15% = 0.15
m = 12 m = 12 m = 12 m = 12
n=6 n=12 n=24 n=36

n=mt n=mt n=mt n=mt

6=12t 12=12t 24=12t 36=12t
6/12 = t 12/12 = t 24/12 = t 36/12 = t
t=0.5 t=1 t=2 t=3

B=CP – DP B=CP – DP B=CP – DP B=CP – DP

=1499 – 299 =1499 – 299 =1499 – 299 =1499 – 299
=1200 =1200 =1200 =1200
Interest Charged Interest Charged Interest Charged Interest Charged
I = Brt I = Brt I = Brt I = Brt
= (1200)(0.15)(0.5) = (1200)(0.15)(1) = (1200)(0.15)(2) = (1200)(0.15)(3)
= RM90 = RM180 = RM360 = RM540
Monthly Payment Monthly Payment Monthly Payment Monthly Payment
B+I B+I B+I B+I
R= R= R= R=
n n n n
(1200+90) (1200+180) (1200+360) (1200+540)
= = = =
6 12 24 36
= RM215 = RM115 = RM65 = RM48.35
Installment Price Installment Price Installment Price Installment Price
IP = CP + I IP = CP + I IP = CP + I IP = CP + I
=1499+90 =1499+180 =1499+360 =1499+540
=RM1589 =RM1679 =RM1859 =RM2039

b) Based on the installment price, Vanessa should choose which monthly payment to settle the
instalment? State the reason.

Based on the installment price, Vanessa should choose to pay by 6 months installments because it has the lowest
installments price.

EMELDA ENTELA AJANG 2

QUESTION 2

Aziera wishes to buy a new dryer listed at RM1,988 as shown in Figure 1 through an installment scheme with
RM188 as down payment and 10% interest charge based on reducing balance. She has the choice of settle
the payment by making 6 monthly payments, 12 monthly payments, 24 monthly payments and 36 monthly
payments.

a) Using Constant Ratio Formula, calculate the instalment price according to 6, 12, 24 and 36 monthly payments.

6 Months 12 Months 24 Months 36 Months

CP = 1988 CP = 1988 CP = 1988 CP = 1988
DP = 188 DP = 188 DP = 188 DP = 188
r = 10% = 0.1 r = 10% = 0.1 r = 10% = 0.1 r = 10% = 0.1
m = 12 m = 12 m = 12 m = 12
n=6 n=12 n=24 n=36

n=mt n=mt n=mt n=mt

6=12t 12=12t 24=12t 36=12t
6/12 = t 12/12 = t 24/12 = t 36/12 = t
t=0.5 t=1 t=2 t=3

B=CP – DP B=CP – DP B=CP – DP B=CP – DP

=1988 – 188 =1988 – 188 =1988 – 188 =1988 – 188
=1800 =1800 =1800 =1800
Interest Charged Interest Charged Interest Charged Interest Charged
I Br (n+1) I Br (n+1) I Br (n+1) I Br (n+1)
= 2m = 2m = 2m = 2m
(1800)(0.1)(6+1) (1800)(0.1)(12+1) (1800)(0.1)(24+1) (1800)(0.1)(36+1)
= = = =
2(12) 2(12) 2(12) 2(12)
1260 2340 4500 6660
= = = =
24 24 24 24
= RM52.50 = RM97.50 = RM187.50 = RM277.50
Monthly Payment Monthly Payment Monthly Payment Monthly Payment
B+I B+I B+I B+I
R= R= R= R=
n n n n
(1800+52.50) (1800+97.50) (1800+187.50) (1800+277.50)
= = = =
6 12 24 36
= RM308.75 = RM158.12 = RM82.81 = RM57.70
Installment Price Installment Price Installment Price Installment Price
IP = CP + I IP = CP + I IP = CP + I IP = CP + I
=1988+52.50 =1988+97.50 =1988+187.50 =1988+277.50
=RM2040.50 =RM2085.50 =RM2175.50 =RM2265.50

b) Based on the instalment price, Aziera should choose which monthly payment to settle the instalment? State
the reason.

Based on the instalment price, Aziera should choose 6 monthly payments due to it have the lowest installment
price.

EMELDA ENTELA AJANG 3

QUESTION 3
Fortune Book Store Sdn. Bhd. received an invoice from Happy Trading Sdn. Bhd. as shown in Figure 3. The
trade discounts offered by Happy Trading Sdn. Bhd. are 20% and 10% with the cash discount terms: 4/10,
2/20, n/30.

a) Calculate the total list price for all listed items in the invoice.

NO CODE DESCRIPTION QTY UNIT PRICE SUB TOTAL

1 P-11 Pencil 100 Boxes RM5.00 RM500.00
2 F-04 File 100 Units RM1.00 RM100.00
3 CP-07 Colour Pencils 50 Boxes RM2.00 RM100.00
4 S-09 Sharpener 50 Units RM2.50 RM125.00
5 M-16 Whiteboard Marker 100 Boxes RM4.50 RM450.00
GRAND TOTAL: RM1275.00

LP = 1275
d₁ = 0.2
d₂=0.1
b) Calculate the single discount equivalent rate to the given trade discounts
SDER = 1 – (1- d₁)(1- d₂)
=1 - (1 - 0.2)(1 - 0.1)
=0.28
=28%
c) Determine the last date to receive 4% cash discount.

Trade Discount:4/10
= Invoice date + 10 days
=14th June 2022 + 10 days
= 24th June 2022

The last date to receive 4% cash discount is on the 24th June 2022

d) Calculate the total payment including a transportation fee of RM150 if Fortune Book Store Sdn.
Bhd. made the payment on 1 July 2022.

LP: 1275
AD:150

4/10: 14th June 2022 + 10 day = 24th June 2022

2/20: 14th June 2022 + 20 days = 4th July 2022
If payment made on 1st July 2022, should use 2/20 trade discount which will get 2% cash discount.

Total payment = LP (1 - d₁)(1- d₂)(1-cd) + AD

=1275 (1 – 0.2)(1 – 0.1) (1- 0.02)+150
=RM1049.64

EMELDA ENTELA AJANG 4