QNFB123 BUSINESS MATHEMATICS SEM 1 2023/2024

GROUP MEMBERS:
1. NURIN IZZATI BINTI MOHAMD RAIZULI (ACP01083558)
2. NAZHIRA ASYAFIA BINTI ZUNNASRI (ACP01083571)
3. RABIATULAIDAVIAH BINTI AHMAD FAUZI (ACP01084043)
4. SUFIYA ADDINI BINTI MOHD IRWAN (ACP01083572)
5. SITI HANIM HURAINI BINTI MOHAMAD ROSLI (ACP01083901)

CHAPTER 4: COMPOUNDED INTEREST

(a) Determine the type of project

Mutually exclusive

(b) Calculate the total present value.

(c) Calculate the net present value

INITIAL INVESTMENT RM150,000

SIME DARBY BERJAYA

TNB IOI BERHAD
YEAR BERHAD GROUP
(RM) (RM)
(RM) (RM)
2019 40,000 56,000 47,000 34,000
2020 40,000 34,000 64,000 45,000
2021 40,000 44,000 43,000 86,000
2022 40,000 43,000 55,000 56,000
2023 40,000 24,000 57,000 54,000

TOTAL 200,000 201,000 266,000 275,000

TPV= Total Present Value

II= Initial Investment
NPV= Net Present Value

TNB 6%

CASHFLOW PRESENT VALUE

YEAR (1+k)^-n
(RM) (RM)
2019 40,000 (1+0.06)^-1 0.9434 37,736
2020 40,000 (1+0.06)^-2 0.8900 35,600
2021 40,000 (1+0.06)^-3 0.8396 33,585
2022 40,000 (1+0.06)^-4 0.7921 31,684
2023 40,000 (1+0.06)^-5 0.7473 29,890
TPV 168,495
II 150,000
NPV 18,495
SIME DARBY BERHAD 6.50%

CASHFLOW PRESENT VALUE

YEAR (1+k)^-n
(RM) (RM)
2019 56,000 (1+0.065)^-1 0.9390 52,582
2020 34,000 (1+0.065)^-2 0.8817 29,976
2021 44,000 (1+0.065)^-3 0.8278 36,425
2022 43,000 (1+0.065)^-4 0.7773 33,425
2023 24,000 (1+0.065)^-5 0.7299 17,517
TPV 169,926
II 150,000
NPV 19,926

BERJAYA GROUP 5.25%

CASHFLOW PRESENT VALUE

YEAR (1+k)^-n
(RM) (RM)
2019 47,000 (1+0.0525)^-1 0.9501 44,656
2020 64,000 (1+0.0525)^-2 0.9027 57,774
2021 43,000 (1+0.0525)^-3 0.8577 36,881
2022 55,000 (1+0.0525)^-4 0.8149 44,820
2023 57,000 (1+0.0525)^-5 0.7743 44,133
TPV 228,264
II 150,000
NPV 78,264

IOI BERHAD 5%

CASHFLOW PRESENT VALUE

YEAR (1+k)^-n
(RM) (RM)
2019 34,000 (1+0.05)^-1 0.9524 32,381
2020 45,000 (1+0.05)^-2 0.9070 40,816
2021 86,000 (1+0.05)^-3 0.8638 74,290
2022 56,000 (1+0.05)^-4 0.8227 46,071
2023 54,000 (1+0.05)^-5 0.7835 42,310
TPV 235,869
II 150,000
NPV 85,869

(d) Which project will be accepted and briefly explain.

All net present value for each project are positive so that all projects will be profitable and could proceed.
However, with the highest net present value at 5%, Project IOI BERHAD is to be slightly preffered.
CHAPTER 5: ANNUITY

Present Value Ordinary Annuity = PMT x (1- ((1+k)^-n)

k

45,000 = PMT x (1- ((1+ 0.04/12) ^12x5)

0.04/12

PMT = RM 828.74
Principal RM45,000
Periods 60
Rate 0.003333333
Payment RM 828.74

Beginning Monthly
Interest paid Principal paid Ending Balance
Month balance Payment
(RM) (RM) (RM)
(RM) (RM)
1 45,000.00 828.74 150.00 678.74 44,321.26
2 44,321.26 828.74 147.74 681.01 43,640.25
3 43,640.25 828.74 145.47 683.28 42,956.97
4 42,956.97 828.74 143.19 685.55 42,271.42
5 42,271.42 828.74 140.90 687.84 41,583.58
6 41,583.58 828.74 138.61 690.13 40,893.45
7 40,893.45 828.74 136.31 692.43 40,201.02
8 40,201.02 828.74 134.00 694.74 39,506.28
9 39,506.28 828.74 131.69 697.06 38,809.22
10 38,809.22 828.74 129.36 699.38 38,109.84
11 38,109.84 828.74 127.03 701.71 37,408.13
12 37,408.13 828.74 124.69 704.05 36,704.08
13 36,704.08 828.74 122.35 706.40 35,997.69
14 35,997.69 828.74 119.99 708.75 35,288.94
15 35,288.94 828.74 117.63 711.11 34,577.82
16 34,577.82 828.74 115.26 713.48 33,864.34
17 33,864.34 828.74 112.88 715.86 33,148.47
18 33,148.47 828.74 110.49 718.25 32,430.23
19 32,430.23 828.74 108.10 720.64 31,709.58
20 31,709.58 828.74 105.70 723.04 30,986.54
21 30,986.54 828.74 103.29 725.46 30,261.08
22 30,261.08 828.74 100.87 727.87 29,533.21
23 29,533.21 828.74 98.44 730.30 28,802.91
24 28,802.91 828.74 96.01 732.73 28,070.18
25 28,070.18 828.74 93.57 735.18 27,335.00
26 27,335.00 828.74 91.12 737.63 26,597.37
27 26,597.37 828.74 88.66 740.09 25,857.29
28 25,857.29 828.74 86.19 742.55 25,114.74
29 25,114.74 828.74 83.72 745.03 24,369.71
30 24,369.71 828.74 81.23 747.51 23,622.20
31 23,622.20 828.74 78.74 750.00 22,872.19
32 22,872.19 828.74 76.24 752.50 22,119.69
33 22,119.69 828.74 73.73 755.01 21,364.68
34 21,364.68 828.74 71.22 757.53 20,607.15
35 20,607.15 828.74 68.69 760.05 19,847.10
36 19,847.10 828.74 66.16 762.59 19,084.51
37 19,084.51 828.74 63.62 765.13 18,319.38
38 18,319.38 828.74 61.06 767.68 17,551.71
39 17,551.71 828.74 58.51 770.24 16,781.47
40 16,781.47 828.74 55.94 772.81 16,008.66
41 16,008.66 828.74 53.36 775.38 15,233.28
42 15,233.28 828.74 50.78 777.97 14,455.32
43 14,455.32 828.74 48.18 780.56 13,674.76
44 13,674.76 828.74 45.58 783.16 12,891.60
45 12,891.60 828.74 42.97 785.77 12,105.82
46 12,105.82 828.74 40.35 788.39 11,317.43
47 11,317.43 828.74 37.72 791.02 10,526.41
48 10,526.41 828.74 35.09 793.66 9,732.76
49 9,732.76 828.74 32.44 796.30 8,936.46
50 8,936.46 828.74 29.79 798.96 8,137.50
51 8,137.50 828.74 27.13 801.62 7,335.88
52 7,335.88 828.74 24.45 804.29 6,531.59
53 6,531.59 828.74 21.77 806.97 5,724.62
54 5,724.62 828.74 19.08 809.66 4,914.96
55 4,914.96 828.74 16.38 812.36 4,102.60
56 4,102.60 828.74 13.68 815.07 3,287.53
57 3,287.53 828.74 10.96 817.79 2,469.75
58 2,469.75 828.74 8.23 820.51 1,649.24
59 1,649.24 828.74 5.50 823.25 825.99
60 825.99 828.74 2.75 825.99 (0.00)
TOTAL RM 49,724.61 RM 4,724.61 RM 45,000.00