MAT112 : BUSINESS

MATHEMATICS

by Group MAT112G13

ANNUITY AND TRADE

DISCOUNT & CASH
DISCOUNT
 PRESENTED BY

Muhammad
Ainul Inayah Binti Nurul Syafika Nur Aisyah Adliea Binti
Tariq Bin
Nordin Binti Mohd Noor Ahmad Zamani
Masdar (2022621622) (2022679708)
(2022478954)
(2022451708)
 Question 1
a) Zahara borrowed a sum money
from a financial company and had to
pay equal monthly payments of RM
985.65 for eight years at an interest
rate og 6% coumpounded monthly. Find
the amount borrowed by Zahara.
 Answer
Question 1
Find the amount borrowed by Zahara

a) R= RM 985.65 -n
t= 8 years A= R 1- (1 + i) = 1- 0.619523908
r= 0.06 = 0.380476091
m= 12
i 0.06
-96 12
A= 985.65 1- 0.06 = 26.09521825 x 985.65
12 A = RM 75003.25#
0.06
12
 Question 1
b) Borhan took personal loan of RM 5000and paid
equal monthly payments for five years at an interest
rate of 4.5% compounded monthly.

i) Find the monthly payment

ii) If Borhan fails to pay the first five monthly

payments, find the amount he has to pay on the sixth
payment in order to settle the outstanding arrears.

iii)Find the outstanding principal balance if hr decided

to settle the loan immidietly after the 50th payment
.
 Answer
Question 1
i) Find the monthly payment ii) Find the amount he has to pay on the
sixth payment in order to settle the
A = RM 50,000 -n outstanding arrears.
A= R 1- (1 + i)
m = 12 month
t = 5 years i n
A = R (1+ i) - 1
r = 4.5% -60 i
50,000 = R 1-(1+ 0.045)
R=? 6
0.045
i=k A = 932.15 (1 + 0.045) -1
12
m 0.045
= 53.64 R 12
R = 50,000 R = RM 5645.60#
53.64
= RM 932.15#
 Answer
Question 1

iii) Find the outstanding principal balance if hr

decided to settle the loan immidietly after the 50th
payment.

-n
A = R 1- ( 1+ i)
i
-10
932.15 1- (1 + 0.045)

A = RM 9132.10#
 Question 2
NFT Technology ordered 20 units of monitors
and received an invoice dated 28 January 2020
for RM18,000 (excluding transportation cost)
with cash discount terms of 7/15, n/30 and trade
discount 8% and 10%. The transportation cost
was RM1,630.

i)Find the last date to receive the cash discount.

ii) Find the single discount rate equivalent to the

given trade discounts.

iii) Explainthecashdiscountterms7/15,n/30.
 Answer Question 2
i))Find the last date to receive the cash
discount.
January 31 - 28 = 3
15 day - 3 days = 12
(cash discount term 7/15)
= The last date to received cash
discount is 12 February 2020.
ii) Find the single discount rate
equivalent to the given trade discounts.
Single discount = 1-( 1 - r 1) (1 - r2)
= 1-(1 - 0.08) (1-0.1)
= 0.172 X 100
= 17.2%
 Answer
Question 2
iii) Explainthecashdiscountterms7/15,n/30.

If the buyer pay the invoice within 15 days of the invoice

date the buyer entitled to receive a 7% discount.
n30 or sometimes written as net30 means the creadit
period is 30 days
 Question 2

iv) Find the net price after trade

discount.

v) Find the total payment if NFT

Technology pays the invoice on
10th February 2022
 Answer question 2
iv) Find the net price after trade discount.

List Price = RM 1 800- RM1 630

= RM 16 370

Net Price = List Price (1-r)

Net Price = RM 16 370 (1-0.172)
= RM 13 554.36#
 Answer question 2
v) Find the total payment if NFT Technology pays the invoice on 10th
February 2022
January (31-28) = 3 Entitled 7% cash discount
February = 10
Net Payment = Net price (1-c) + other cash
=13 days Net Price = RM 13 554.36 (1-0.07) + RM 1 630
= RM 14 235.55#

Entitled