ADDITIONAL MATHEMATICS PROJECT WORK | 2022

Introduction

Housing issues are often discussed by people in this country as prices of affordable homes are
increasing nowadays.

Part 1

Part 2
Source: KOSMO, 29 September 2013

The ability to own a house is a worry for all Malaysians. Affordable homes are defined as
houses that meet the requirements in terms of quality, location and affordability. However, the
home buyer still has the financial ability to buy other basic needs.

McKinsey Global Institute (2014) has estimated 330 million urban households around the
world are living in houses which are low in standard or burdened by the cost of housing. In this
case, Malaysia is facing the same issues. Variety of factors have caused a misfit between the
supply and the demand for homes. As a result, Malaysia is facing a shortage of affordable
homes for the people.

According to Khazanah Report (2017), Malaysia has the lowest savings rates in the world. The
habit of saving is not difficult and can be done creatively.

Assuming that you plan to save for 25 years to buy a home by cash purchase. Your first deposit
is RM 10 000 at the age of 24. Each year you plan to increase your savings by 20% so that you
will have an amount of at least RM1 million after 25 years. This is the magic of Compound
Interest which makes it a wonderful investment. Albert Einstein has said that Compound
Interest is one of the wonders of the world.

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 ADDITIONAL MATHEMATICS PROJECT WORK | 2022

Part 1

a. Explain the meaning of Compound Interest.

b. How can Mathematics be used to calculate the Compound Interest?

Part 2

a. Based on the situation given, if you did not withdraw any savings for 25 years, construct
a table to show the total amount of savings for 25 years. Give your answer to the nearest
RM.
b. Show that the total sum, that you should receive can be calculated using the formula
𝑟 𝑛
J = P (1 + 100)
P = starting principal
r = rate of compound interest
n = number of years of investment

Give your answer to the nearest RM.

c. Will your dream of saving at least RM 1 million after 25 years be realised? Give a
reason for your answer.

Part 3

The market price of houses around Bandar Baru Bangi area is found to be the highest in the
Klang Valley area. On the other hand, the number of double storey terrace houses constructed
in Malaysia is the highest in Petaling District followed by Hulu Langat District in the Klang
Valley around the years 2005 - 2010.

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 ADDITIONAL MATHEMATICS PROJECT WORK | 2022

Number of houses

800
709
700

600

500

400
325
298
300
215
200

100
43
0
Gombak Hulu Langat Klang Petaling Sepang District

Diagram 1: The average value of the number of Double Storey Terrace Houses in the Klang
Valley area.
Sources: National Property Information Center (NAPIC) 2010

District Market Price (RM)

Year Year
2005 2010
Gombak 295 000 385 000
Hulu Langat 260 000 320 000
Klang 185 000 230 000
Petaling 360 000 550 000
Sepang 145 000 205 000

Table 1
a. Based on Table 1, calculate the composite index of the market prices in the year 2010
based on the year 2005.

b. Given the composite index for the year 2018 based on the year 2010 remain unchanged.
Calculate the market price of houses in the Klang Valley in 2018 if the corresponding
market price in the year 2005 is RM 292 157.

c. The market price of houses is expected to increase by 12% from the year 2018 to the
year 2025. Find the composite price index in the year 2025 based on the year 2005.

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 ADDITIONAL MATHEMATICS PROJECT WORK | 2022

Further Exploration

Task 1
Measure the distance from the tip of your nose to the bottom of your chin and the centre of
your lips (with your mouth closed) to the bottom of your chin. Take 6 different readings from
your friends and complete Table 3.

Diagram 3

Distance from tip of nose to bottom of chin (a)

Distance from centre of lips to bottom of chin (b)

Value of a:b
Table 3

(a) What is the ratio obtained?

(b) What are your observations based on the measurements obtained?
(c) Are your group’s facial assessments nearing the divine ratio according to the ratio of
the gross readings taken?

*Your answer for part (a) above is known as the golden ratio. What is the golden ratio?

Reflection

While you were conducting the project, what have you learnt? What moral values did you
practice? Represent your opinions or feelings creatively through the usage of symbols,
illustrations, drawing or even in a song.