EXERCISE SIMPLE INTEREST

1. On 15th May 2012, Daniel saved RM 6000 in an account which offered a simple
interest rate of 8 % per annum. Find the amount in the account on 1st December
2012 (Use approximate time, exact simple interest)
196 days, RM6257.05

2. A college student deposited RM 1500 in an account when he was 18 years old.

The simple interest rate offered was 4.85%. Calculate the simple interest earned
when the college student is 25 years old.
RM509.25

3. Raju paid RM 8200 on 12 September 2011 for his loan of RM 8000 made on a
certain date. The simple interest rate was 5% per annum. Using Banker’s Rule,
determine the term of the loan (in days) and the date of the loan.
180 days, 16 Mac 2011

4. Mr. Chong invests RM 5000 in an investment fund for two years. At the end of the
investment period, his investment is worth RM 7245. Find the simple interest rate
that is offered.
22.45%

5. On 30 September 2012, Suraya paid RM 3100 for her loan of RM 3000 made on
a certain date. The simple interest rate charged was 10%. Using exact time and
exact simple interest, find
(i) the term of the loan
(ii) the date of the loan
122 days
31 ay2012

6. Delfina deposited RM 6200 in her Leftside Bank account which pays simple interest
at 2.5% per annum. If she had deposited that money in Rightside Bank for 2 years,
she would have earned an interest of RM 124 more than in Leftside Bank.
(i) Find the simple interest rate given by Rightside Bank
(ii) How long would she needs to invest in Rightside Bank to have RM 7285 in
the account?
3.5%
5 years

7. Shiela had saved RM 3000 in an account that offered r% simple interest per annum
on 20 March 2015. If the interest on 6 June 2015 was RM 50, find the value of r
using Banker’s Rule.
7.69%

8. Kevin invested RM4000 in an investment scheme on 18th October 2016. The

investment offered a simple interest rate of 5% per annum. By using approximate
time and exact simple interest, find the total interest received on 20th December
2016.
RM33.88
EXERCISE COMPOUND INTEREST
1. RM 20000 is invested in an investment fund that pays 6% compounded annually
for 10 years.
(i) Find the compound amount. RM35816.95
(ii) Find the interest earned. RM15816.95

2. If Farahin invested RM 2000 and after t years, she got RM 6250 with interest 5.5%
compounded every six months. How long was the investment?
21 years

3. 8 years ago, RM X was invested at a bank that offered an interest rate of 8%

compounded semi-annually. If the balance in the account today is RM 5618.95,
(i) find the value of X RM3000

4. David has an option of investing his money either in Fund A that gives 6% interest
compounded quarterly or in Fund B that gives 6% compounded semi-annually. If
he wishes to invest RM 50000 for 3 years, which fund should he choose?
Fund A because it has higher maturity value than Fund B

5. A sum of money was deposited four years ago at a bank that offered an interest
rate of 7.20%compounded every two months. If the accumulated amount today is
RM 6391.07, calculate the initial deposit.
RM4800

6. Stephen wishes to have RM 6000 in two years’ time to tour Middle East. How much
should he invest today at 8% compounded semi-annually?
RM5128.83

7. RM 5000 was invested for four years. The bank offered 6% compounded monthly
for the first three years and r% compounded annually for the rest of the period. If
the amount in the account at the end of the term was RM 7000, find r.
16.99%

8. Felixia deposited RM 3700 at Bank Cahaya that pays interest k% compounded

semiannually. After 3 years, the amount accumulated was RM 4418.
(i) (a) Find the interest rate k. 6%
(ii) Find the accumulated amount if she deposited the money for 5 years.
RM4972.49
EXERCISE BUYING AND SELLING
1. A retailer ordered 20 sets of dining table and received an invoice dated 25th March
2009 for RM 15000 including the transportation cost with cash discount terms of
7/15, n/30 and trade discount 8 % and 4 %. The transportation cost was RM 1584.
(a) Find the last date of received the cash discount. 9 April 2011
(b) Calculate the net price for 20 sets of dining table. RM13433.01
(c) Determine the total payment if the retailer pays the invoice on 8th April 2009.
RM12603.58

2. A retailer received an invoice dated 7th June 2011 with trade discounts of 15% and
10% and cash discount terms of 5/10, 2/20, n/30. The net price after the trade
discounts including transportation cost of RM 200 was RM 1730.
(a) Explain the cash discount terms of 5/10, 2/20, n/30. Relevant explanation
(b) Find the list price. RM2000
(c) Find the total payment if the payment was made on 27th June 2011.
RM1699.40

3. A dealer bought 50 pieces of pearl bracelets and received an invoice of RM 2350

including transportation cost of RM 250. The date of invoice is 21st November 2012
and the cash discount term is 10/10, 5/20, n/30. If he received trade discounts 8%,
5%, find
(a) the net price after the trade discounts, RM1835.40
(b) the net payment if payment is made on 2nd December 2012. RM1993.63

4. A washing machine that cost RM 3000 is given a trade discounts of 20% and 15%.
A further 3%cash discount will be given if it is paid within 5 days. Find the total
discounts obtained if the payment is made within the cash discount period.
RM1021.20

5. The net price of a smart phone after trade discount of 10% and 5% is RM1,999.
Find the list price.
RM2338.01

6. (b) An invoice dated 21 February 2016 for RM2,500 (including RM200 handling
charges) was offered trade discount of 15%, 7% and cash discount terms of 5/10,
2/20 and n/60. Find
i) The net price after trade discount RM1818.15
ii) The amount paid on 3 March 2016. RM1981.79

7. An owner of a sundry shop received an invoice for the purchase of 200 bottles of
liquid detergent at RM 15.00 each and 300 bottles of liquid fabric softener at RM
8.00 each. The invoice was dated 6th August 2010. He was offered trade discounts
of 10 % and 8 %, and cash discount terms of 10/10, 5/20, n/30. The dealer paid
the invoice on 21st August 2010.the interest charged.
i) Find the total amount of mark up if the dealer wanted a net profit of 10 %
based on cost for all items and operating expenses of 15 % based on cost
for all items. RM1061.91
ii) Find the selling price of a bottle of liquid soap detergent. RM14.75
iii) Find the selling price of a bottle of liquid fabric softener. RM7.86
8. The Strawberry Candy Company wants to produce limited edition special candy
for the New Year celebration. The company decides to produce only 1000 the
limited-edition candy at a cost of RM 12500. The net profit for each candy is 15 %
based on cost and the total operating expense for the candies is RM 555.50.
i) What is the selling price for each candy? RM14.93
ii) Calculate the total gross profit for the candies. RM2430.50
iii) Find the breakeven price for the candies. RM13055.50
iv) What is the maximum percentage of markdown that can be offered without
incurring any loss? 12.56%

9. Talent Company Sdn Bhd bought 20 coffee makers at RM 110 each. They wanted
a gross profit of 45% based on the selling price and the total operating expenses
was RM 500.
i) Find the selling price of a coffee maker. RM200
ii) Find the net profit for a coffee maker. RM65
iii) Find the breakeven price for a coffee maker. RM135
iv) The company only managed to sell 12 coffee makers. The rest of the coffee
makers are sold at 50% markdown. Do they gain profit or loss? RM500

10. Saleha Boutique purchased 50 dresses for RM 3250. Saleha wanted a net profit
of 40% based on the selling price. If the operating expenses were 18% based on
the cost, determine
i) the selling price of a dress, RM127.83
ii) the gross profit for a dress, RM62.83
iii) the breakeven price. RM76.70
EXERCISE HIRE PURCHASE
1. Farid bought a plasma television at RM 4500 using installment payments. He paid
20% for the down payment and the balance was settled by making 24 monthly
installments. If the interest charged was 4.75% per annum on the original balance,
find
i) the total interest charged. RM342
ii) the monthly payment. RM164.25
iii) the installment price. RM4842
iv) the outstanding balance if he decided to settle the balance immediately after
making the 12th payment using the Rule of 78. RM1882.80

2. A series of magazines was purchased by making a down payment of RM 100 and

10 monthly payments of RM 121.50. If the interest charged was 1.5% based on the
original balance, find
i) the installment price of the magazines. RM1315
ii) the cash price of the magazines. RM1300
iii) the amount of outstanding balance just after the 8th payment using Rule of
78. RM242.18

3. The cash price of an electric stove is RM 4200. On an installment plan, a 15%

down payment is required followed by monthly payments for 2 years. If the interest
charged is 9% on the reducing balance, find the
i) interest charged using the Constant Ratio Formula, RM334.69
ii) monthly payment, RM162.70
iii) total amount a customer will eventually pay for the electric stove,
RM4534.69
iv) outstanding balance if the customer decides to settle the loan immediately
after the 8th payment (Use Rule of 78). RM2451.47

4. After paying RM 400 as a down payment for a kitchen cabinet, Sharon paid RM
125 a month for 2 years for the balance. The interest charged on the original
balance was 4%.
i) Determine the cash price of the kitchen cabinet and the total interest paid.
RM3177.78 & RM222.22
ii) Calculate the amount of outstanding balance just after the 15th payment
using the Rule of 78. RM1091.67
iii) Find the interest rate using the Constant Ratio Formula. 7.68%
EXERCISE DEPRECIATION
1. The cost of new HiFi is RM 3850. Its estimated useful life is 5 years with a scrap
value of RM 650. Find
i) the accumulated depreciation for 3 years using the straight-line method.
RM1920
ii) the annual rate of depreciation using reducing balance method.
29.94%

2. The cost of a grass cutter is RM 8000 and its salvage value at the end of 7 years
is RM 1700. Calculate the accumulated depreciation and the book value of the
cutter at the end of 4th year using the straight-line method.
RM4400

3. The cost of a car is RM 50000 with useful life of 7 years. The scrap value is
estimated to be RM 12000. Construct a depreciation schedule by indicating the
annual depreciation and the book value for the first 3 years using declining balance
method. Depreciation Table

4. A plasma television costs RM 5888 and has expected life of 7 years. After 3 years
of usage, the total depreciation of the television using the declining balance method
was RM 1595.65.
i) Find the rate of the depreciation. 10%
ii) Find the scrap value of the television. RM2816.21

5. Delicious Bakery bought a microwave oven at RM 17000. It is estimated to last for

7 years and has a salvage value of RM 3000.
i) Find the book value of that oven after 3 years by using the straight-line
method. RM11000
ii) Find the annual rate of depreciation by using the declining balance method.
21.95%

6. Donald bought a boat which costs RM75689 and the boat is expected to have an
useful life of 7 years. Calculate the book value for the 5th year if the salvage value
is RM 21345 using declining balance method. RM30645.29

7. A sewing machine has a scrap value of RM 3000 at the end of 5 years. The book
value at the end of the third year is RM 4500. Using the straight-line method, find
the cost of the sewing machine. RM6750