Additional Mathematics 2014

Project Work 2

OLIVER

5S2
 Additional Mathematics 2014
Project Work 2

OLIVER

5S2
 Additional Mathematics 2014
Project Work 2

OLIVER

5S2
 Additional Mathematics 2014
Project Work 2

OLIVER

5S2
 Additional Mathematics 2014
Project Work 2

OLIVER

5S2
 Additional Mathematics 2014
Project Work 2

OLIVER

5S2
 Additional Mathematics 2014
Project Work 2

INTRODUCTION

This project needs to be done to fulfil the terms for Additional Mathematics paper by
the Ministry of Education Malaysia. In part of that, the duration for this project work to
complete by individually either in a group should not exceed three weeks which the deadline
is at 15 August. This time, I have to accomplish this project work about interest rate offered
by that finance company in Malaysia and inflation rate that may increase in the future.
Besides covering my project work, I have to seek the officer in such finance company near
my hometown regarding interest rate for car loans given by them to their client.

The aims of carrying this project work are to enable students to:

a) Apply mathematics to everyday situations and appreciate the importance and the beauty
of mathematics in everyday lives;

b) Improve problem solving skills, thinking skills, reasoning and mathematical

communication;

c) Develop positive attitude and personalities and intrinsic mathematical values such as
accuracy, confidence and systematic reasoning;

d) Stimulate learning environment that enhance effective learning, inquiry-based and team-
work;

e) Develop mathematical knowledge in a way which increases students’ interest and

confidence.

Within the three weeks period, I have to discuss all my finding with my teacher and other
partners to find the best way to produce the best project work that can be the best guidance
for those who want to know about financing.

I hope that this project work will make me more mature in dealing with financing
agency beside it teaches me more dedicated in life.

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 Additional Mathematics 2014
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ACKNOWLEDGEMENT

First of all, I would like to thank to God for giving us energy, strength and health to
carry out this project work.

Next, I would like to thank to my school for giving me the opportunity to produce this
project work. School also provides me space to discuss and carry out this project work.

Not forgetting to my beloved parents who provided everything needed in this project
work, such as financial, Internet, books, computer and so on. They contribute their time and
courage on sharing their knowledge with us. Their support may elevate the strength of mind
to me to do this project work efficiently.

After that, I would like to express thanks to my Additional Mathematics teacher,

Mdm Chong Lee Khim for guiding me throughout this project work. My group had some
difficulties in doing this task, but she taught us tolerantly and gave me guidance throughout
the journey until we knew what to do. She tried her most excellent as a teacher, to help us
until we understand what we supposed to do with the project work

Lastly, as I am doing this project work in a group, I would like to express gratitude to
my classmates who shared ideas and providing some help on solving problems. They were
cooperative when we combined and discussed together and we help each other until we can
finished this project work.

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 Additional Mathematics 2014
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REFLECTION

I would first to thank to God that I have finished my project work in the time given.
And also a big thanks to my parent who has give me full moral and financial support to
accomplish this project work. Not to forget, thanks to my Additional Mathematics teacher,
Mdm Chong Lee Khim who guides me and my friends to finish this project work.

Throughout the project while I was conducting it, I learned many stuff. This includes
on usage of knowledge and ways to conduct the project. While I was conducting the project, I
collected information from the internet and brochures from the banks regarding the interest
for car loans. Besides, I manipulated my knowledge in other fields such as banking and
economics in this research

I have also learned the beauty of Mathematics in everyday life. Mathematics is the
field of study that tends to define by the types of problems it addresses, the methods it uses to
address these problems, and the results is achieved. Doing this project work also helps me to
re-master my Mathematics knowledge and learn from the mistake of doing methods in
problem solving questions.

While planning, I made few tables on interest loan based on monthly instalment given
by the bank, weigh against the interest rate from those banks and roll 2 other methods for the
calculation. This has trained me that a lot of work should be done such as consideration and
provision for repayment before making a loan. I learn this to rationalise my expenses for the
family. I must be able to clear the debt within the time given and should not make decision in
a haste because of quickness make great waste.

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PART 1 (a)

Public Bank

Loan interest 2.5% per annum

Loaned value Monthly instalment according to the lengths (RM)

(RM)
48 60 72 84 96 108
78 000 1787.50 1462.50 1245.83 1091.07 975.00 884.72

75 000 1718.75 1406.25 1197.92 1049.11 937.50 850.69

72 000 1650.00 1350.00 1150.00 1007.14 900.00 816.67

69 000 1581.25 1293.75 1102.08 965.18 862.50 782.64

66 000 1512.50 1237.50 1054.17 923.21 825.00 748.61

63 000 1443.75 1181.25 1006.25 881.25 787.50 714.58

60 000 1375.00 1125.00 958.33 839.29 750.00 680.56

57 000 1306.25 1069.75 910.42 797.32 712.50 646.53

54 000 1237.50 1012.50 862.50 755.36 675.00 612.50

51 000 1168.75 956.25 814.58 713.39 637.50 578.47

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Maybank

Loan interest 2.7% per annum

Loaned value Monthly instalment according to the lengths (RM)

(RM)
48 60 72 84 96 108
78 000 1800.50 1475.50 1258.83 1104.07 988.00 897.72

76 000 1754.33 1437.67 1226.56 1075.76 962.67 874.70

74 000 1708.17 1399.83 1194.28 1047.45 937.33 851.69

72 000 1662.00 1362.00 1162.00 1019.14 912.00 828.67

70 000 1615.83 1324.17 1129.72 990.83 886.67 805.65

68 000 1569.67 1286.33 1097.44 962.52 861.33 782.63

66 000 1523.50 1248.50 1065.17 934.21 836.00 759.61

64 000 1477.33 1210.67 1032.89 905.90 810.67 736.59

62 000 1431.17 1172.83 1000.61 877.60 785.33 713.57

60 000 1385.00 1135.00 968.33 849.29 760.00 690.56

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AmBank

Loan interest 3.15% per annum

Loaned value Monthly instalment according to the lengths (RM)

(RM)
48 60 72 84 96 108
78 000 1829.75 1504.75 1288.08 1133.32 1017.25 926.97

75 000 1759.38 1446.88 1238.54 1089.73 978.13 891.32

72 000 1689.00 1389.00 1189.00 1046.14 939.00 855.67

69 000 1618.63 1331.13 1139.46 1002.55 899.88 820.01

66 000 1548.25 1273.25 1089.92 958.96 860.75 784.36

63 000 1477.88 1215.38 1040.38 915.38 821.63 748.71

60 000 1407.50 1157.50 990.83 871.79 782.50 713.06

57 000 1337.13 1099.63 941.29 828.20 743.38 677.40

54 000 1266.75 1041.75 891.75 784.61 704.25 641.75

51 000 1196.38 983.88 842.21 741.02 665.13 606.10

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PART 1 (b)

I have survey and pick out 3 of my favourite banks which are Public Bank, Maybank
and Ambank, this shows that the loan interest are vary between these 3 banks which are
2.5%, 2.7% and 3.15% respectively. The lower the interest rate given by the bank, the better
the savings I can get when I borrow the bank loan. As you can see, the lowest interest is
given by Public Bank and the highest interest is given by Ambank and Maybank interest is
slightly in the middle between those 2 banks. Some bank offer high interest rate to earn much
profits and interest change without prior notice because of economy factors.

I extremely advise my father to take bank loan from Public Bank because of a number
of reasons. I highly prioritise the loan interest offer by 3 banks and I like better to choose
Public Bank because it has the least interest rate rather than another bank. This is also
because my father does not have to forfeit much loan every month and he can have much
savings for another uses.

Even though Public Bank is located quite far away from my hometown, my father can
rationalise his savings by using it for his transportation fuels to go to and back from the bank.
My father also does not have to go to the bank every week because he only goes to the bank
when he requires assistance.

Plus, I am considering that banking with Public Bank is also much easier and
convenient compared to another bank. They also treat their clients the way that they have to
and the administrator is very user-friendly. Public Bank is also well-known among my
father’s friends and relatives so that they can encourage him to gives good satisfaction to the
bank.

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PART 1 (c)

Your father wants to loan RM60, 000.00. By using at least two methods, find the values paid
for the car if your father chooses instalment for 4 years, 5 years, 6 years, 7 years, 8 years and
9 years. Show your working clearly and perform your findings in table.

PUBLIC BANK

Duration Interest Rates Yearly Interest Yearly Amount

4 years RM 1375 RM 66 000

5 years RM 1125 RM 67500

6 years RM 958.33 RM 69000

2.5% per annum
7 years RM 839.29 RM 70500

8 years RM 750 RM 72000

9 years RM 680.56 RM 73500

METHOD 1: Percentage

4 years = 48 months

2.5
[(4× ) ×60000] +60000
100
10
=[ ×60000] +60000
100

=6000+60000

66000
=
48

=1375

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5 years = 60 months

2.5
[(5× ) ×60000] +60000
100
12.5
=[ ×60000] +60000
100

=7500+60000

67500
=
60

=1125

6 years = 72 months

2.5
[(6× ) ×60000] +60000
100
15
=[ ×60000] +60000
100

=9000+60000

69000
=
72

=958.33

7 years = 84 months

2.5
[(7× ) ×60000] +60000
100
17.5
=[ ×60000] +60000
100

=10500+60000

70500
=
84

=839.29

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8 years = 96 months

2.5
[(8× ) ×60000] +60000
100
20
=[ ×60000] +60000
100

=12000+60000

72000
=
96

=750

9 years = 108 months

2.5
[(9× ) ×60000] +60000
100
22.5
=[ ×60000] +60000
100

=13500+60000

73500
=
108

=680.56

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PART 2 (a)

Pie Chart

Family's monthly expenditure

Food Transportation Water bill Electricity bill Telecommunications Savings Others

9%

16% 35%

13%

12%
11%
4%

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Bar graph

Family's monthly expenditure

30

25

20

15

10

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PART 2 (b)

Term lengths typically by those banks in this country are at range between 48 and 108
months. The most suitable length of instalment for car that I will choose is the shortest
possible, which is 4 years, or usually expressed in months, such as a 48-month term. This is
because the longer the loans mean lower monthly payments. But I will be paying more to the
bank in terms of finance charges. That’s why unless I can find an outstanding deal, most
financial people say to go with the shortest loan is more feasible.

As to compare, the annual interest and the annual amount, the annual interest value
become less following the year and the annual amount value increases as the year increases
even if the interest rates are fixed at all over the monthly instalments. I can always take out a
longer-term and just pay it off ahead of schedule. But, some lenders might charge an early
termination fee for doing so. Plus, I am paying the bulk of the interest rate charges in the
initial years of the loan.

Even though, there are some banks offered the increasing of interest rates along with
the years too, and that causes more money wasted when I pay the loan to the bank as they
collect much profits the interest rates given. As I repeat this again, although the longer the
month terms picked, they are becoming increasingly common. So the conclusion is the
shortest monthly instalment is more practical for me.

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PART 2 (c)

Electricity – 9%

Electricity charge increases by 10%

10%
= × 9%
100
= 0.9%

= 0.9% + 9.0%

= 9.9%

New electricity charge – 5.5%

9.9
= × 4500
100
= 𝑅𝑀445.50

Savings become decreases, currently at 15%

15
= × 4500
100
= 𝑅𝑀675.00

= 15% − 0.9%

= 14.1%

14.1
= × 4500
100
= 𝑅𝑀634.50

The increases of electricity charge affect the family expenditure through savings.

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FURTHER EXPLORATION
(a)

Overall expenditure;

In 2014

𝑇1 = 𝑅𝑀1000

In 2020
6
𝑇7 = (1000)(1.004)

𝑇7 = 𝑅𝑀1024.24

𝑇𝑛 = 𝑎𝑟 𝑛−1
𝑇1 = 𝑎
Food (2014) 𝑎 = 2500
100.4%
46 𝑟= = 1.004
= × 1000 100
100

= 𝑅𝑀460

Food (2020)
46
= × 1024.24
100

= 𝑅𝑀471.15

Transportation (2014)

27
= × 1000
100

= 𝑅𝑀270

Transportation (2020)

27
= × 1024.24
100

= 𝑅𝑀276.54

Bill of water (2014)

2
= × 1000
100

= 𝑅𝑀20

Bill of water (2020)

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2
= × 1024.24
100

= 𝑅𝑀20.48

Bill of electricity (2014)

8
= × 1000
100

= 𝑅𝑀80

Bill of electricity (2020)

8
= × 1024.24
100

= 𝑅𝑀81.94

Telecommunications (2014)

17
= × 1000
100

= 𝑅𝑀170

Telecommunications (2020)

17
= × 1024.24
100

= 𝑅𝑀174.12

Family’s expenditures for year 2014

Expenditures % RM
Food 46 460.00
Transportation 27 270.00
Bill of water 2 20.00
Bill of electricity 8 80.00
Telecommunications 17 170.00

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Family’s expenditures for year 2020

Expenditures % RM
Food 46 471.15
Transportation 27 276.54
Bill of water 2 20.48
Bill of electricity 8 81.95
Telecommunications 17 174.12

(b)

2014 – RM4500

2015 – RM4725

2016 – RM4961.25

2017 – RM5209.31

2018 – RM5469.78

2019 – RM5742.27

2020 – RM6029.38

The increment is not satisfied with the percentage of family expenditure. The value of family
expenditure becomes higher when the both of the income and the percentage of increase high.

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(c) I will not encourage my father to accept the offer. This is because small difference in
the interest rate can make a big difference to the payments over time. As the interest rate of
credit card charged at 0.4% monthly, calculation shows that the interest rate yearly is at 4.8%.
That is a very large portion of value. This could waste much money than any other type of
loans. Buying a credit card is not recommended because the interest rate is higher than any
other loans categories.

As the interest rate of loan increases, the interest of savings decrease because the
interest value that need to pay to the bank is usually higher. While the interest of saving is
high means that I just need pay low according to the interest loan for credit card.

RM15000 credit card loan with 4.8% annually interest rate for 1 year.

4.8
[100 × 15000] + 15000
= 𝑅𝑀15720
12
RM15000 interest of saving based on 3% annually for 1 year

3
[100 × 15000] + 15000
= 𝑅𝑀15450
12

(d) What you will need first, is a clear idea of where your money is going; then you can
look at ways to cut fluff and lower the cost of your required living expense. The fastest way
for some people to reduce monthly expenses will be in the area of health, auto and life
insurance. Companies that sell those are incredibly competitive. Avoid items, however cheap
or appealing, which have a primary effect of causing large and unnecessary spending. Some
of these items, such as printers and suits, though rarely vehicles, are helpful to get rid of even
if they are not broken.

Avoid or minimize addictive or mind-altering substances, those which are illegal,

currently expensive, decrease current productivity, decrease future productivity, cause health
problems, or decrease judgment undermining reduction of expenses. Make a shopping list
before you go to the store and stick to it. This is especially helpful to impulse buyers. A
shopping list gives you a clear idea of what you need and eliminates unnecessary purchases.

Parents should place rules on cell phone use. If your cell phone use is occasional only,
consider a pay-as-you-go plan. Do consider, however, that a cheap unlimited data and
navigation plan can sometimes save money by allowing instant price comparisons and quality
checks. Some mobile phone plans are genuinely good and money-saving; but make sure that
you shop around first for the deal that best suits you.

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Reference
http://malaysia.deposits.org/providers/maybank.html

http://malaysia.deposits.org/accounts/cimb-bank-1-year-fixed-deposit.html

http://malaysia.deposits.org/accounts/ambank-1-year-fixed-deposit.html

http://www.maybank2u.com.my/calculator/form_hire-purchase-calc.html

https://ringgitplus.com/en/car-loan/

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HISTORY

History of statistics

Statistics is the study of the collection, organization, analysis, interpretation and presentation
of data. It deals with all aspects of data including the planning of data collection in terms of
the design of surveys and experiments. When analyzing data, it is possible to use one of two
statistics methodologies: descriptive statistics or inferential statistics.

The History of statistics can be said to start around 1749 although, over time, there have
been changes to the interpretation of the word statistics. In early times, the meaning was
restricted to information about states. This was later extended to include all collections of
information of all types, and later still it was extended to include the analysis and
interpretation of such data. In modern terms, "statistics" means both sets of collected
information, as in national accounts and temperature records, and analytical work which
require statistical inference.

Statistical activities are often associated with models expressed using probabilities, and
require probability theory for them to be put on a firm theoretical basis: see History of
probability.

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A number of statistical concepts have had an important impact on a wide range of sciences.
These include the experiments and approaches to statistical inference such as Bayesian
inference, each of which can be considered to have their own sequence in the development of
the ideas underlying modern statistics.

By the 18th century, the term "statistics" designated the systematic

collection of demographic and economic data by states. For at least two millennia, these data
were mainly tabulations of human and material resources that might be taxed or put to
military use. In the early 19th century, collection intensified, and the meaning of "statistics"
broadened to include the discipline concerned with the collection, summary, and analysis of
data. Today, data are collected and statistics are computed and widely distributed in
government, business, most of the sciences and sports, and even for many pastimes.
Electronic computers have expedited more elaborate statistical computation even as they
have facilitated the collection and aggregation of data. A single data analyst may have
available a set of data-files with millions of records, each with dozens or hundreds of separate
measurements. These were collected over time from computer activity (for example, a stock
exchange) or from computerized sensors, point-of-sale registers, and so on. Computers then
produce simple, accurate summaries, and allow more tedious analyses, such as those that
require inverting a large matrix or perform hundreds of steps of iteration, that would never be
attempted by hand. Faster computing has allowed statisticians to develop "computer-
intensive" methods which may look at all permutations, or use randomization to look at
10,000 permutations of a problem, to estimate answers that are not easy to quantify by theory
alone.

Johann Heinrich Lambert in his 1765 book Anlage zur Architectonic proposed
the semicircle as a distribution of errors:

With -1 < x < 1.

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Progression may refer to:

In mathematics:

Arithmetic progression, sequence of numbers such that the difference of any two
successive members of the sequence is a constant
Geometric progression, sequence of numbers such that the quotient of any two successive
members of the sequence is a constant

In music:

Chord progression, series of chords played in order

Backdoor progression, the cadential chord progression from iv7 to I, or flat-VII7 to I
in jazz music theory
Omnibus progression, sequence of chords which effectively divides the octave into 4
equal parts
Ragtime progression, chord progression typical of ragtime music and parlour music
genres
Progression, music software for guitarists

In other fields:

Age progression, the process of modifying a photograph of a person to represent the

effect of aging on their appearance
Cisternal progression, theory of protein transport through the Golgi apparatus inside a
cell
Colour progression, ranges of colour whose values transition smoothly through a hue,
saturation, luminance, or any combination of the three
Horizontal progression, the gradual movement from left to right during writing a line of
text in Western handwriting
A progressive tax is a tax by which the tax rate increases as the taxable amount increases
Semantic progression, evolution of word usage
Educational progression, an individual's movement through stages
of education and/or training
Progress tracking in video games

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Astrological progression, used in Horoscopic astrology to forecast future trends and

developments.

1. Arithmetic Progression

In mathematics, an arithmetic progression (AP) or arithmetic sequence is

a sequence of numbers such that the difference between the consecutive terms is constant.
For instance, the sequence 5, 7, 9, 11, 13, 15 … is an arithmetic progression with common
difference of 2.

If the initial term of an arithmetic progression is and the common difference of successive
members is d, then the nth term of the sequence ( ) is given by:

And in general

A finite portion of an arithmetic progression is called a finite arithmetic

progression and sometimes just called an arithmetic progression. The sum of a finite
arithmetic progression is called an arithmetic series.

The behaviour of the arithmetic progression depends on the common difference d. If

the common difference is:

Positive, the members (terms) will grow towards positive infinity.

Negative, the members (terms) will grow towards negative infinity.

2. Geometric Progression

In mathematics, a geometric progression, also known as a geometric sequence, is

a sequence of numbers where each term after the first is found by multiplying the previous
one by a fixed, non-zero number called the common ratio. For example, the sequence 2, 6,
18, 54 ... is a geometric progression with common ratio 3. Similarly 10, 5, 2.5, 1.25 ... is a
geometric sequence with common ratio 1/2.

Examples of a geometric sequence are powers rk of a fixed number r, such as 2k and 3k. The
general form of a geometric sequence is

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Where r ≠ 0 is the common ratio and a is a scale factor, equal to the sequence's start
value.

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CONCLUSION

As the conclusion for this, the increasing of inflation rate in Malaysia does affect the
family’s expenditures and its monthly income itself. Because value of everything is
expected to be higher in the future and continue to higher when the inflation rate
increases.

The use of card credit is probably not good for people who have their middle level
income every month. The monthly interest rate offer in the credit card is roughly different
to any type of loans. People should not be encouraged to have a credit card loan because
much money will be wasted by paying the interest rate to the bank.

We need to know how to save money because it can be use at another time. People
should avoid over spending and try to be rational when buying something. We should
think on what should do and whether to react it or not.

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