KOLEJ FELCRA,

BANDAR BARU SEBERANG PERAK, PERAK

GROUP PROJECT
BUSINESS MATHEMATICS (MAT 112)
SESSION

PREPARED BY:

GROUP 2

1. AMIRNUR DEANIAL BIN MOHD SAMSUDDIN (2023101817)

2. MUHAMMAD AMIRUL SHAIFULSHAH BIN RAMLI (2023128179)
3. NUR SYAHIRAH BINTI KHALID (2023386407)
4. CHEARLEAN KATE JINOH (2023588803)

PREPARED FOR:

MISS NUR ASYATULMAILA BINTI MOHAMAD ASRI

GROUP 2

QUESTION 1

a) Five years ago ,a sum of money was deposited in a savings account which
given 10% simple interest . The accumulated today is Rm7,500

I) How much is the initial saving

𝑆 = 𝑃(1 + 𝑟𝑡) 7500=P(1 + (0.01)(5))

P=? P= ( ( . )( ))
r=10%(0.10) P=RM 5000
t=5

ii) How many years from today will the savings amount to RM9000?

𝑆 = 𝑃(1 + 𝑟𝑡)
t=( )( )

P=5000
S=9000
R=10%(0.1)

t= ( )( . )

t=8years
b) Azhar invest RM2,500 at 11.5% simple interest in a bank. He withdraws RM1,000
from the account 6 month later .How much is left in the account ?

𝑆 = 𝑃(1 + 𝑟𝑡)
P=2,500
r=11.5% (0.115)
t=6/12

S=2500(1 + (0.10)(6/12))
S=RM 2643.75

S= s- amount deduct
S=2643.75-1000
S=RM 1643.75
Question 2

a) Rimba Bara is a rock band who plans to record their album and sells their DVDs to their fans. On 19th
March 2010 they decide to sign a promissory note with a recording company, Rock & Rolling
Recording Studio with a face value of RM8,000 at 7% interest rate. The note will mature on 16th
August 2010. However, on 7th July 2010, Rock & Rolling Recording Studio decides to sell their note
to a bank with a bank discount RM110.33 at 9% discount rate. Find:

Date of Note: 19 March 2010

P = RM 8 000
r = 7% (0.07)
Maturity Date: 16 August 2010
Discount Date: 7 July 2010
D = RM 110.33
d = 9% (0.09)

I) Who is the payee of the note?

= Rock & Rolling Recording Studio

II) Find the term of the note.

Month ET t= = 502.5 (not leap years)

March 2010 31 – 19 = 12 tr =

April 30
May 31
June 30
July 31
August 16
Total 150 Days
III) Find the maturity value of the note.

P = S (1 + rt)-1
8 000 = S [ 1 + (0.07) ( )]-1
8 000 = S (0.971659919)
S=
.
S = RM 8 233.33

IV) How much is the proceeds received by the Rock & Rolling Recording Studio ?

To find td, td =

Month ET
July 2010 31 – 7 = 24
August 16
Total 40 Days

Proceeds, H
H = S (1 -dtd)

H = 8 233.33 [1 – (0.09) ( )]

H = RM 8 151

V) Find the interest rate that is equivalence to the discount rate.

r= x 100
.
r= x 100
( . )( )
r = 9.1 %
 b) Ibrahim received a 130-day promissory note on 20 January 2010 with simple interest at 6%. On 26
March 2010, he discounted the note at a discount rate of 4% and received proceeds of RM15,000. Find

I. the maturity date of the note.

Month ET t= = 502.5 (not leap years)

JAN 2010 31 – 20 = 11 tr =

FEB 28
MARC 31
APRIL 30
MAY 30
Total 130 Days

= 30 MAY 2010

II. The maturity value of the note

𝑠 = ℎ (1 + 𝑟𝑡 )

𝑠 = 15000 1 − (0.04)
𝑠 = 15109.12

III. The face value of the note

I. 𝑝 = 𝑠 (1 + 𝑟𝑡)
𝑝 = 151109.12 1 + (0.06)
𝑝 = 147904.52
Question 3
a) Fasha borrowed RM3.000 at 6% compounded semi-annually for four years. Find the amount of
interest charged.

P = RM 3 000
k = 6% (0.06)
m=2
t = 4 Years
.
i= = =
n = mt = (2)(4) = 8

S = P (1 + i)n
S = 3 000 (1 + )8
S = RM 3 800.31

b) A sum of money, RM Z was deposited in a savings account with interest 8% compounded quarterly.
After one year, RM2.000 was withdrawn. Three years after the withdrawal, the balance was RM
12,865.29. Find the value of Z.

P = RM Z
k = 8% (0.08)
m=4
to = 1 Years
W = RM 2 000
t2 = 3
S2 = RM 12 865.29
.
i= = =
n1 = mto = (4)(1) = 4
n2 = mt1 = (4)(3) = 12

S2 = Pnew (1 + i) -n2
12 865.29 = Pnew (1 + )-12
Pnew = 12 865.29 (1 + )-12
Pnew = RM 10 144.19

S1 = Pnew + W
S1 = 10 144.19 + 2 000
S1 = RM 12 144.19

P = S (1 + i) -n1
P = 12 144.19 + (1 + )-4
P = RM 11 219.35
c) Amirul deposited RM1000 in a savings account at 3% compounded monthly. Find the number of
months required if he wanted the amount in the account to become RM2000.

P = RM 1 000
k = 3% (0.03)
m = 12
S = RM 2 000
.
i= = =
n = mt = (12)(t)

= (1 + 𝑖 )n
= (1 + )n
n
2=
401
log 2 = 𝑛 log
400
log 2
𝑛=
401
log 400
𝑛 = 278 𝑚𝑜𝑛𝑡ℎ𝑠
 Question 4.

a) RM100 was invested at the end of every month for 70 months in an account that paid 6%
compounded monthly. After 70 months, no more deposit was made. Find the amount in
the account at the end of 100 months.

√ √ √ √ √ √ √ X X +1
|______|______|______|______|______|______|______|______|______|______|
0 10 20 30 40 50 60 70 80 90 100

R = RM100 (every month)

t = 70 months
k = 6% (0.06)
m = 12

i=
.
i=

i=
n = 2+1
n=3

𝑆 = R [(1 + 𝑖 ) − 1]
i

𝑆 = 100 (1 + ) −1

𝑆 = RM 301.50

1
b) Amri took a loan that charged interest of 7% compounded quarterly to buy a single
storey terrace house. He paid the down payment of RM25, 000 and needs to repay the
loan in 30 years time with monthly payment RM1, 020. Find

k = 7% (0.07)
m=4
R = RM1, 020
DP = RM25, 000
t = 30
n = (m) (t)
n = (4) (30)
n = 120

i=
.
i=

i=

i) The cash price of the house.

A = R [1 − (1 + 𝑖) ]
i

A = 1020 1 − (1 + )

A = RM51, 017.43
B = RM51, 017.43
CP = B + DP
CP = 51017.43 + 25000
CP = RM76, 017.43

2
ii) The total interest charged.

I = 𝑅( ) -A
I = 1020( ) - 51017.43
I = RM71, 382.57

iii) The outstanding balance if Amri decided to settle the loan immediately after the 100th
payment.

𝑛 =m𝑡
𝑛 = (4) (30)
𝑛 = 120
𝑛 = 100
𝑛 =𝑛 -𝑛
𝑛 = 120 - 100
𝑛 = 20
𝐴 = R [1 − (1 + 𝑖) ]
i

𝐴 = 1020 1 − (1 + )

𝐴 = RM17, 087.94