PROJECT WORK
1/2012

NAME

: NUR FAREHA

CLASS

: 5 ST1

IC NUMBER

:

TEACHER

: PUAN NORZIAH RAHIM

SCHOOL

: SMK TINGGI PEREMPUAN MELAKA

OBJECTIVES

The aims of carrying this project works are :

To apply and adapt a variety of problem-solving strategies to solve problems

To improve thinking skills

To promote effective mathematical communication

To develop mathematical knowledge to problem solving in a way that increases
student interest and confidence

To use the language of mathematics to express mathematical ideas precisely

To develop positive attitude towards mathematics

ACKNOWLEDGEMENT

First and foremost I would like to thank God that finally, I have succeeded in
finishing this project work. I would like to thank my beloved Additional Mathematics
teacher, Puan Norziah Rahim for all the guidance she had provided me during the process in
finishing this project work. I also appreciate her patience in guiding me completing this
project work. I would like to give a thousand thanks to my father and mother for giving me
their full support in this project work, financially and mentally. They gave me moral support
when I needed it. I would also like to give my thanks to my fellow friends who had help me
in finding the information that I’m clueless of and the time we spent together in study groups
on finishing this project work. Last but not least, I would like to express my highest gatitude
to all those who gave me the possibility to complete this task. I really appreciate all the help I
got. Again, thank you very much.

CONTENTS
NO

CONTENT

1

OBJECTIVES

2

ACKNOWLEDGEMENT

3

INTRODUCTION

4

PART 1

PART 1 (a)

PART 1 (b)(i)

PART 1 (b)(ii)

5

PART 2

6

PART 3

7

FURTHER EXPLORATION

8

CONCLUSION

9

REFLECTION

PAGE

INTRODUCTION

The most common types of loans come from bank which exists to lend money. So it not
surprise that banks offer a wide variety of ways to fund a business growth. Here’s look at
how lenders generally structure loans with some common variations :

1. Line of credit loan :

The most useful type of loans for a small business is the line of

credit loan. This is a short term loans that extend the cash available in your business’s
checking account to upper limit of the loans.

2. Balloons loans

:

These loans only the interest to be paid off during the life of the

loan with the final ‘balloon’ payment of the principal due to last day.

3. Interim loans

:

Interim financing is often used by contractors building new

facilities. When the building is finished a mortage on the property will be used to pay
off the interim loan.

MELAKA EDUCATION DEPARTMENT

PART 1
Banks are always competing to give the best offer of loans to potential customers.
(a) Get personal loan brochures from at least three banks in home town. You
can even get them from the internet. Construct a table of comparison
between three brochures. Your table should include :

Total loan

Interest rate

Monthly payment

Years/months of loan

(b) Find the meaning of the following terms
(i)

Interest rate

(ii)

Monthly payment

Personal loans brochures/info

Personal loan brochure from Bank Simpanan Malaysia (BSN)

Personal loan brochure from AmIslamic Bank

Personal loan brochure from Bank Muamalat

Personal loan info from Al-Rajhi Bank

(a) Table of comparison between the banks :
Bank Simpanan Nasional (BSN)

AmIslamic Bank

RM50,000

RM50,000

RM50,000

RM50,000

6 YEARS

6 YEARS

6 YEARS

6 YEARS

4.99%

4.45%

4.64%

4.27%

RM903.00

RM895.00

RM888.00

RM892.00

Total loan
Years of loan
Interest rate
Monthly payment

(b)(i)

Bank Muamalat

Al-Rajhi Bank

An interest rate is the rate charged or paid for using money. You are charged

an interest rate when you borrow money and paid an interest rate when you loan money
(placing it in a savings or investment account is like a loan to the bank).With credit cards and
loans, the interest rate directly influences the cost of borrowing. Lower interest rates mean
you'll pay a lower cost, while higher interest rates mean a higher cost. You'll see the cost
reflected in your finance charges. Interest rate is typically influenced by your credit score.
Low credit scores lead to high interest rates and vise versa. Interest rates are typically
expressed as an annual percentage rate -the yearly cost (or benefit) of borrowing (or loaning)
money.
(b)(ii)

Monthly installment is a fixed payment amount made by a borrower to a lender

at a specified date each calendar month. Equated monthly installments are used to pay off
both interest and principal each month, so that over a specified number of years, the loan
is paid off in full.

PART 2
Encik Ahmad plans to take a personal loan of RM 100000 for a duration of 156 months.
As a friend of Encik Ahmad and by comparing the installment rates and the monthly
instalment from the three brochures, which bank would you suggest Encik Ahmad get his
personal loan? Give your reason why.
As a friend of Encik Ahmad, I would suggest him to get his personal loan from
AmIslamic Bank. I have constructed a table to show comparison between the banks if
Encik Ahmad plans to take a personal loan of RM 100,000 for a duration of 156 months
(13 years)

Total loan

Bank Simpanan Nasional (BSN)

AmIslamic Bank

RM100,000

RM100,000

RM100,000

RM100,000

13 YEARS

13 YEARS

13 YEARS

13 YEARS

4.99%

4.45%

5.00%

4.95%

R1057.00

RM1025.00

RM1057.70

RM1054.00

Years of loan
Interest rate
Monthly payment

Bank Muamalat

Al-Rajhi Bank

Based on the table I have constructed, the lowest interest rate is from AmIslamic Bank
which is only 4.45%. Encik Ahmad does not have to pay more on interest as the money
can be used for other expenses. For monthly payment, Encik Ahmad only have to pay
RM 1025 per month. Compared to Bank Simpanan Nasional, Bank Muamalat and AlRajhi Bank, AmIslamic Bank’s monthly payment is the lowest. So there is no doubt why
I suggest Encik Ahmad to get his personal loan from AmIslamic Bank as the bank offers
the best rate to their customers.

PART 3
Find the number of months that Encik Ahmad would take to have paid atleast RM 40,000.

156 months
RM100,000

= 1.56 x 10^(-3)
= 1.56 x 10(-3) x RM 40,000
= 62.4
= 63 months.

FURTHER INFORMATION
Calculate how much would Encik Ahmad save if he makes the loan repayment in 10
years.
10 years
RM1222.00 x 120 months
= RM 146,640.00
13 years
RM 1025.00 x 156 months
= RM159,900.00
= RM 159,900.00- RM 146,640.00
= RM 13,260.00

CONCLUSION

After I accomplished this project, I have found that the mathematics is fun and very
useful in daily life. I have learnt the important of perseverance as time will be inverted to
ensure the completion and excellence of this project.

On the other hands , I have learnt the virtue to making together as I have helped and received
help from my fellow peers in the production of this project. I realised the important to be
thankful and appreciative during completing this task. This is because I able to apply my
mathematical knowledge in daily life and appreciate the beauty of mathematic.

This project is a several training stage for me to prepare myself for the demands of my future
undertaking in the university and work life.

REFLECTION

While I conducting this project, there is a lot of information that I have found. I have learnt
how loan is calculated. Apart from that, this project encourages the student to work together
and share their knowledge. It is also encourages student to gather information from the
internet, improve thinking skills and promote effective mathematical communication. Not
only that, I had learned some moral values that I can practice. This project had taught me to
responsible on the works that are given to me to be completed. This project also had made me
felt more confidence to do works and not to give easily when we could not find the solution
for the question. I also learned to be more discipline on time, which I was given only 3 weeks
to complete this project and pass up to my teacher just in time. I also enjoy doing this project
as I need to spend my time with friends to complete this project and it had tightens our
friendship.