Presented by

KHO LIK FA (K)

()

CINDY anak BARE

()

CHRISYE STEPHANE ANAK NINGKAN

()

ELVERNA PRESNEY ANAK JABANG

()

SELIA SELIANA CHANDU ANAK DEPA

()

MR. JASON LEE YEONG CHERNG

CHAPTERS 1 2 3 4 5 6 7 8 9 10 11

TITLES CONTENT APPRECIATION OBJECTIVES INTRODUCTION PART A PART B PART C PART D FURTHER EXPLORATION CONCLUSION REFLECTION

PAGES 2 4 6 8 11 15 19 24 27 29 31

First of all, we would like to thank God for giving us energy, strength and health to carry out this project work. Next, we would like to thank our school for giving us the chance to create this project work. School also provides us space to discuss and carry out this project work. Not forgetting our beloved parents who provided everything needed in this project work, such as money, Internet, books, computer and so on. They contribute their time and spirit on sharing their experience with us. Their support may raise the spirit in us to do this project work smoothly. After that, we would like to thank our Additional Mathematics teacher, Mr Jason Lee Yeong Cherng for guiding us throughout this project. When we face some difficulties on doing tasks, he will try his best to teach us patiently until we have done the project work. Then, we would like to thank the proprietor of the shop who was willing to share their experience on business activity and the experience on saving money with us. Lastly, we would like to thank our classmates who shared ideas and providing some help on solving problems. We help each other until we finished this project work.

All of our Form 5 students in whole Malaysia are required to carry out an Additional Mathematics Project Work during mid-term holiday. This project is done in groups of five. Upon completion of the Additional Mathematics Project Work, we are to gain valuable experiences and able to: Solve routine and non-routine problems. Improve our thinking skills. Knowledge and skills are applied in meaningful ways in solving real-life problems. Expressing ones mathematical thinking, reasoning and communication are highly encouraged and expected. Stimulates and enhances effective learning. Acquire effective mathematical communication through oral and writing and to use the language of mathematics to express mathematical ideas correctly and precisely. Enhance acquisition of mathematical knowledge and skills through problem-solving in ways that increase interest and confidence. Prepare ourselves for the demand of our future undertakings and in workplace. Realise that mathematics is an important and powerful tool in solving real-life problems and hence develop positive attitude towards mathematics. Train ourselves not only to be independent learners but also to collaborate, to cooperate, and to share knowledge in an engaging and healthy environment. Use technology especially the ICT appropriately and effectively. Train ourselves to appreciate the intrinsic values of mathematics and to become more creative and innovative. Realize the importance and the beauty of mathematics.

INDEX An index number is a percentage ratio of prices, quantities or values comparing two time periods or two points in time. The time period that serves as a basis for the comparison is called the base period and the period that is compared to the base period is called the given or current period. A price index measures the change in the money value of an item (or group of items) over time whereas a quantity index measures the non-monetary value of an item (or a group of items) over time. An index number that represents a percentage comparison of the number of cars sold in a given month as compared with that of a base month is a quantity index. A price index represents a comparison of prices between two time periods and, finally, a value index is one that represents a comparison of the total value of production or sales in two time periods without regard to whether the observed difference is a result of differences in quantity, price or both. Index numbers are also differentiated according to the number of commodities or products included in the comparison. A simple index, also known as a relative, is a comparison involving only one item but an index whose calculation is based on several items is known as an aggregate or composite index. A very famous example of a composite index is the Retail Prices Index (RPI), which measures the changes in costs in the items of expenditure of the average household. In economics and finance, an index is a statistical measure of changes in a representative group of individual data points. These data may be derived from any number of sources, including company performance, prices, productivity, and employment. Economic indices (index, plural) track economic health from different perspectives. Influential global financial indices such as the Global Dow, and the NASDAQ Composite track the performance of selected large and powerful companies in order to evaluate and predict economic trends. The Dow Jones Industrial Average and the S&P 500 primarily track U.S. markets, though some legacy international companies are included. The Consumer Price Index tracks the variation in prices for different consumer goods and services over time in a constant geographical location, and is integral to calculations used to adjust salaries, bond interest rates, and tax thresholds for inflation. The GDP Deflator Index, or real GDP, measures the level of prices of all new, domestically produced, final goods and services in an economy. Market performance indices include the labour market index / job index and proprietary stock market index investment instruments offered by brokerage houses. Some indices display market variations that cannot be captured in other ways. For example, the Economist provides a Big Mac Index that expresses the adjusted cost of a globally ubiquitous Big Mac as a percentage over or under the cost of a Big Mac in the U.S. with a U.S. dollar (estimated: $3.57). Norway prices reflect most relatively expensive Big Mac, at an 84% increase over U.S. prices, or $6.5725 U.S. The least relatively expensive Big Mac price occurs in Hong Kong, at a 52% reduction from U.S. prices, or $1.71 U.S. The Big

Mac index is used to predict currency values. From this example, it would be assumed that Hong Kong currency is undervalued, and provides a currency investment opportunity. An index number is a percentage ratio of prices, quantities or values comparing two time periods or two points in time. The time period that serves as a basis for the comparison is called the base period and the period that is compared to the base period is called the given or current period. A price index measures the change in the money value of an item (or group of items) over time whereas a quantity index measures the non-monetary value of an item (or a group of items) over time. An index number that represents a percentage comparison of the number of cars sold in a given month as compared with that of a base month is a quantity index. A price index represents a comparison of prices between two time periods and, finally, a value index is one that represents a comparison of the total value of production or sales in two time periods without regard to whether the observed difference is a result of differences in quantity, price or both. Index numbers are also differentiated according to the number of commodities or products included in the comparison. A simple index, also known as a relative, is a comparison involving only one item but an index whose calculation is based on several items is known as an aggregate or composite index. A very famous example of a composite index is the Retail Prices Index (RPI), which measures the changes in costs in the items of expenditure of the average household.

The school Cooperative in one of the schools in your area made a profit of RM 50 000 in the year 2011. The cooperative plans to keep the money in a fixed deposit account in a bank for one year. The interest collected at the end of this period will be the poor students in the school. As a member of Board of Cooperative you are to find the total interest which can be collected from different banks. Given below are the interest rates offered by 3 different banks: Bank A, Bank B and Bank C. You are to calculate the interest that can be obtained based on the given rates, if the money is to be kept in the bank for a period of one year for monthly auto renewable, three months auto renewable, six months auto renewable and twelve months auto renewable without withdrawal. Compare and discuss which bank will you choose and explain why. PERIOD 1 MONTH 2 MONTH 3 MONTH 4 MONTH 5 MONTH 6 MONTH 7 MONTH 8 MONTH 9 MONTH 10 MONTH 11 MONTH 12 MONTH BANK A (% p.a.) 3.10 3.10 3.15 3.15 3.15 3.20 3.20 3.20 3.20 3.20 3.20 3.25 BANK B (% p.a.) 3.00 3.00 3.05 3.05 3.10 3.10 3.10 3.10 3.10 3.10 3.10 3.15 BANK C (% p.a.) 3.00 3.00 3.05 3.05 3.05 3.10 3.10 3.10 3.10 3.10 3.10 3.20

Solution by Geometric Progression Solution Tn = arn Bank A Monthly auto renewable = RM 50 000 ( = RM 51 572.21 Three months auto renewable = RM 50 000 ( = RM 51 593.70 Six Months auto renewable = RM 50 000 ( = RM 51 612.80 Twelve months without withdrawal = RM 50 000 ( = RM 51 625.00 Bank B Monthly auto renewable = RM 50 000 ( = RM 51 520.80 Three months auto renewable = RM 50 000 ( = RM 51 542.53 Six months auto renewable = RM 50 000 ( = RM 51 562.01 Twelve months without withdrawal = RM 50 000 ( = RM 51 575.00 ) ) ) ) Interest = RM 51 520.80 RM 50 000 = RM 1 520.80 Interest = RM 51 542.53 RM 50 000 = RM 1 542.53 Interest = RM 51 562.01 RM 50 000 = RM 1 562.01 Interest = RM 51 575.00 RM 50 000 = RM 1 575.00 ) ) ) ) Interest = RM 51 572.21 RM 50 000 = RM 1 572.21 Interest = RM 51 593.70 - RM 50 000 = RM 1 593.70 Interest = RM 51 612.80 RM 50 000 = RM 1 612.80 Interest = RM 51 625 RM 50 000 = RM 1 625.00 a = 50 000

Bank C Monthly auto renewable = RM 50 000 ( = RM 51 520.80 Three months auto renewable = RM 50 000 ( = RM 51 542.53 Six months auto renewable = RM 50 000 ( = RM 51 562.01 Twelve months without withdrawal = RM 50 000 ( = RM 51 600.00 Period Monthly auto renewable Three months auto renewable Six months auto renewable Twelve months without withdrawal Interest (RM) Bank B RM 1 520.80 RM 1 542.53 RM 1 562.01 RM1 575.00 ) ) ) ) Interest = RM 51 520.80 RM 50 000 = RM 1 520.80 Interest = RM 51 542.53 RM 50 000 = RM 1 542.53 Interest = RM 51 562.01 RM 50 000 = RM 1 562.01 Interest = RM 51 600 RM 50 000 = RM1 600.00

Bank A RM 1 572.21 RM 1 593.70 RM 1 612.80 RM 1 625.00

Bank C RM 1 520.80 RM 1 542.53 RM 1 562.01 RM1 600.00

Therefore, we will choose Bank A because the interest of Bank A is higher than Bank B and C.

(a) The Cooperative of your school plans to provide photocopy service to the students of your school. A survey was conducted and it is found out that rental for a photo copy machine is RM 480 per month, cost for a rim of paper (500 pieces) is RM 10 and the price of a bottle of toner is RM 80 which can be used to photocopy 10 000 pieces of paper. (i) What is the cost to photocopy a piece of paper? Solution Rental for photocopy machine/month = RM 480 Cost for a rim of paper (500 pieces) = RM 10 Price of a bottle of toner (10 000 pieces) = RM 80 by Mathematical Solution Cost for a photocopy of a piece of paper = = RM 0.076
( )( )

(ii) If your school cooperative can photocopy an average of 10 000 pieces per month and charges a price of 10 cent per piece, calculate the profit which can be obtained by the school cooperative. Solution by Mathematical Method Charge of a piece of photocopy Profit obtained = (RM 0.10 RM 0.076)(10 000) of a paper = RM 240 = RM 0.10 Cost for a photocopy of a piece of paper = RM 0.076

(b) For the year 2013, the cost for photocopying 10 000 pieces of paper increased due to the increase in the price of rental, toner and paper as shown in table below: Cost 2012 (RM) Cost 2013 (RM) Rental 480 500 Torner 80 100 Paper 200 240 (i) Calculate the percentage increase in photocopying a piece of paper based on the year 2012, using two different methods. Solution METHOD 1 by Mathematical Solution Cost of photocopy of a piece of Percentage increase paper in 2013 = x 100% = = RM 0.084 METHOD 2 by Price Index Solution I= Price Index, I Rental Toner Paper =
( )( ) ( )( ) ( )( )

= 10.5263%

125 120

Weightage, W 25 5 12 Percentage increase =

( )

x 100%

= = 111.17

= 10.5263%

(ii) If the school cooperative still charge the same amount for photocopying a piece of paper, how many pieces of paper should the cooperative photocopy in order to get the same amount of profit? Solution by Mathematical Solution Pieces of paper should cooperative photocopy = = = 15 000 pieces (iii) If the cooperative still maintain to photocopy the same amount of paper per month, how much profit can Cooperative obtain? Solution by Mathematical Solution Profit obtained = (RM 0.10)(10 000) (RM 0.084)(10 000) = RM 160
( )

The population of the school is increasing. As a result, the school cooperative needs more space for keeping the increasing amount of stock. Therefore the school cooperative plans to expand the store-room. It is estimated that cost for renovation is RM 150 000. Make a conjecture on which is a better way for the school cooperative to pay, whether to pay the whole lump sum in cash or keep the RM 150 000 in a fixed deposit account at a rate of 6% p.a. in a bank then borrow the RM 150 000 from a bank and pay for the hire purchase for a period of 10 years with a interest rate of 4.8% p.a. and withdraw monthly to pay for the hire purchase every beginning of a month. Make a conclusion and give your reason. (You can give your solution in table form, Excel or graph)

Solution by Excel Months 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Saving Balance (RM) 148150.00 147040.75 145925.95 144805.58 143679.61 142548.01 141410.75 140267.80 139119.14 137964.74 136804.56 135638.58 134466.78 133289.11 132105.56 130916.08 129720.67 128519.27 127311.86 126098.42 124878.92 123653.31 122421.58 Total Loans To Be Pay (RM) 1850.00 3700.00 5550.00 7400.00 9250.00 11100.00 12950.00 14800.00 16650.00 18500.00 20350.00 22200.00 24050.00 25900.00 27750.00 29600.00 31450.00 33300.00 35150.00 37000.00 38850.00 40700.00 42550.00 Months 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 Saving Balance (RM) 121183.69 119939.60 118689.30 117432.75 116169.91 114900.76 113625.27 112343.39 111055.11 109760.38 108459.19 107151.48 105837.24 104516.43 103189.01 101854.95 100514.23 99166.80 97812.63 96451.70 95083.95 93709.37 92327.92 Total Loans To Be Pay (RM) 44400.00 46250.00 48100.00 49950.00 51800.00 53650.00 55500.00 57350.00 59200.00 61050.00 62900.00 64750.00 66600.00 68450.00 70300.00 72150.00 74000.00 75850.00 77700.00 79550.00 81400.00 83250.00 85100.00

Months 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84

Saving Balance (RM) 90939.56 89544.26 88141.98 86732.69 85316.35 83892.93 82462.40 81024.71 79579.83 78127.73 76668.37 75201.71 73727.72 72246.36 70757.59 69261.38 67757.69 66246.48 64727.71 63201.35 61667.35 60125.69 58576.32 57019.20 55454.30 53881.57 52300.96 50712.48 49116.04 47511.62 45899.18 44278.67 42650.07 41013.32 39368.39 37715.23 36053.81 34384.08

Total Loans To Be Pay (RM) 86950.00 88800.00 90650.00 92500.00 94350.00 96200.00 98050.00 99900.00 101750.00 103600.00 105450.00 107300.00 109150.00 111000.00 112850.00 114700.00 116550.00 118400.00 120250.00 122100.00 123950.00 125800.00 127650.00 129500.00 131350.00 133200.00 135050.00 136900.00 138750.00 140600.00 142450.00 144300.00 146150.00 148000.00 149850.00 151700.00 153550.00 155400.00

Months 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120

Saving Balance (RM) 32706.00 31019.53 29324.62 27621.24 25909.35 24188.90 22459.84 20722.14 18975.75 17220.63 15456.74 13684.02 11902.44 10111.95 8312.51 6504.07 4686.60 2860.03 1024.33

Total Loans To Be Pay (RM) 157250.00 159100.00 160950.00 162800.00 164650.00 166500.00 168350.00 170200.00 172050.00 173900.00 175750.00 177600.00 179450.00 181300.00 183150.00 185000.00 186850.00 188700.00 190550.00 192400.00 194250.00 196100.00 197950.00 199800.00 201650.00 203500.00 205350.00 207200.00 209050.00 210900.00 212750.00 214600.00 216450.00 218300.00 220150.00 222000.00 223850.00

by Graph
160000 140000 120000 100000 80000 60000 40000 20000 0 Saving Balance (RM)

Pay RM 150 000 in cash is better than keep the RM 150 000 in a fixed deposit account at a rate of 6% p.a. then loan RM 150 000 from the other bank and pay with the period of 10 years with the rate of 4.8% p.a..

The cooperative of the school also has another amount of RM 50 000. The cooperative plans to keep the money in a bank. The bank offered a compound interest rate of 3.5% per annum and a simple interest rate of 5% per annum. Explain the meaning of compound interest and simple interest. Suggest a better way of keeping the money in this bank. State a suitable period for keeping the money for each plan. Explain why.

Solution by Dictionary (source: Oxford Advanced Learners Dictionary 6th Edition) Compound interest Interest that is paid both on the original amount of money saved and on the interest that has been added to it.

Simple interest Interest that is paid only on the original amount of money that you invested, and not on any interest that is earned.

By Excel Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Simple Interest (RM) 50000 52500 55000 57500 60000 62500 65000 67500 70000 72500 75000 77500 80000 82500 85000 Compound Interest (RM) 50000 51750 53561.25 55435.89 57376.15 59384.32 61462.77 63613.96 65840.45 68144.87 70529.94 72998.49 75553.43 78197.80 80934.73 Year 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Simple Interest (RM) 87500 90000 92500 95000 97500 100000 102500 105000 107500 110000 112500 115000 117500 120000 122500 125000 Compound Interest (RM) 83767.44 86699.30 89733.78 92874.46 96125.07 99489.44 102971.57 106575.58 110305.72 114166.42 118162.25 122297.93 126578.36 131008.60 135593.90 140339.69

140000

120000

100000

99459.44317
80000

Simple Interest Compound Interest

60000

40000

20000

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

From the table and the graph above, Simple interest is suitable for savings in a short period. It is because of its interest is higher than compound interest and it is paid only on the original amount of money that you invested, and not on any interest that is earned. For example, when you keep RM50 000 with an interest of 5% of simple interest for 2 years, then you will gain RM 5 000 after two years. So the total amount in the bank is RM 55 000 after two years. When one keeps RM 50 000 with the interest of 3.5 % of compound interest for 2 years, then you will gain RM3 561.25. So the total amount in the bank is RM 53 561.25 after two years. Compound interest is suitable for savings in a long period. It is because of the original amount of money saved and on the interest that has been added to it. For example, RM50 000 for the plan of 3.5 % of compound interest plan for 21 years then we will have RM 102 971.57 in our saving account. But when one keeps RM 50 000 for the plan of 5 % of simple interest for 30 years, then we will only have RM 102 500 in our savings account. Therefore, it is better to save in the compound interest plan account for long-term savings and simple interest for short-term savings.

When Ahmad was born, his parents invested an amount of RM 5 000 in the Amanah Saham Bumiputera (ASB) for him. The interest rate offered was 8.0% p.a. At what age will Ahmad have a saving of RM 50 000, if he keeps the money without withdrawal?

Solution by Geometric Progression Tn = 50 000 r = = 1.08 a = 5 000 Tn = arn-1 Let, Tn > 50 000 5 000 (1.08 ) > 50 000 1.08n-1 > 10 log 1.08n-1 > log 10 (n-1) log 1.08 > log 10
n-1

by Excel Terms, Tn 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Value of saves 5000 5400 5832 6298.56 6802.44 7346.64 7934.37 8569.12 9254.65 9995.02 10794.62 11658.19 12590.85 13598.12 14685.97 15860.85 17129.71 18500.09 19980.09 21578.51 23304.79 25169.17 27182.70 29357.32 31705.90 34242.38 36981.77 39940.31 43135.53 46586.37 50313.28 Age of Ahmad 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

n-1 > n-1 > 29.92 n > 30.92 The least value of n = 31, age = 30.

Ahmad will have a saving of RM 50 000 at the age of 30.

After doing research, answering the questions, plan a table and some problem solving, we saw that usage of index number is important in our daily business activity. It is not just widely use in the business segment but also in banking skills. We learnt a lot of lesson from this Additional Mathematics Project Work such as banking account skills, loaning technique, counting the cost of a product, predict the future plans of money and so on. Without this, shopkeeper will get a lot of loses in the business activity. We would like to thanks the one who contribute the idea of index number to help us a lot in our business activity together in our daily life.

After by spending countless hours, days and night to finish this project and also sacrificing our time for chatting and movies in this few weeks, there are several things that we want to say

Additional Mathematics, The killer subject, But when we study hard, It was so easy to understand Additional Mathematics, You look so interesting, So unique from the other subject, Thats why we like you so much After sacrificing our precious time, Spirit and energy for this project, And now, We realized something important from it! We really love Additional Mathematics, Additional Mathematics, You are our real friend, You are our family, And you are our life WE LOVE ADDITIONAL MATHEMATICS!

END, BYE...