FACULTY OF MANAGEMENT AND ENTREPRENEURSHIP

MBB2203 BUSINESS MATHEMATICS

INDIVIDUAL ASSIGNMENT I

This assignment carries a 10% weightage towards final grade.

Your assignment must be submitted on 21st October 2022 (FRIDAY) ON-LINE via the Google
Classroom before 12midnight. Late of submission will incur a penalty of 2 percent deduction of marks
(including Saturday and Sunday). Plagiarism will cause zero marks to this assignment. The report
MUST include Cover page that consists of your information (Name, Matric Number, Course Code,
Course Name, Lecturer Name, name of assignment & etc)

INSTRUCTION: Answer ALL questions.

1. RM20,000 was invested on 23 March 2012 at 5% per annum. Find the interest earned on 27
November 2012 using the Banker’s Rule.
2. The amount in an account which was opened 180 days ago in RM205. If the account was
offered a simple interest of 5% per annum, find the original principal.
3. A debt of RM720 on 30 November 2012 will amount to RM750 on 20 February 2013. Find the
rate of ordinary simple interest being charged using the approximate time.
4. On 5 July 2012, Ah Wong borrows RM900 and agrees to repay the loan in 100 days at 10% per
annum simple interest. Find the simple amount of the loan and the settlement date of the
loan, using the Banker’s Rule.
5. How long does it take for a sum of money to double itself at a simple interest rate of 6% per
annum?
6. On 2 November 2006, Hilmi saved RM1,200 in an account that pays 8.6% per annum simple
interest. Three years later, he added another RM500 into the account. Find the amount in his
account on 2 November 2012.
7. Eighteen months ago, a sum of money was invested. Now the investment is worth RM10,900.
If the investment is extended for another 20 months, it will become RM11,900. Find the
original principal and the simple interest rate that offered.
8. A certain sum of money is invested now. This investment will be worth RM5,500 after 15
months and RM5,800 after 24 months. Find the original principal and the simple interest rate
was offered.
9. A TV commercial from a loan company states, ‘You only pay 50 cents a day for each RM100
borrowed’. If you borrow RM2000 for 100 days, what annual interest rate you paying?
10. A debt of RM3,000 due six months ago and another RM5,000 due in 18 months are to be
settled by two equal payments, one at the end of four months and the other at the end of ten
months. Find the size of the payments using
a. The present as the focal date,
b. The end of 18 months as the focal date,

Assuming money is worth 9% per annum simple interest.

 Q1: RM20,000 was invested on 23 March 2012 at 5% per annum. Find the interest earned on
27November 2012 using the Banker’s Rule ?

P = 20,000
R=5% (5/100) = 0.05
T= between 23 march to 27 November

NUMBER OF THE DAY’S = 249 DAY’S

MONTH’S NUMBER
0F 2012 OF DAY’S
23
MARCH 249 DAY’S
TO 27
November

SO LIKE WE SEE FROM 23 MARCH 2012 TO 27 November 2012 IT’S HAS 249 DAY’S

SO THE INTEREST = 20,000 X 5% X (249/ 366) = 680.33

(INTEREST = principal X INTEREST RATE X TIME )

Q2: The amount in an account which was opened 180 days ago in RM205. If the account was
offered a simple interest of 5% per annum, find the original principal?

SI = P x R x T
100

WE KNOW THAT:

T = 180 DAY’S
R = 5%
F = 205 RM


T = 180
F = 205 IN THE FORMULAR
Xx ( 365 + 0.05 x 180 ) = 205
R = 5% 365

 F= P + Prt
 205= p+ Prt  X x ( 365 + 9 )= 205
 365
 X x 374 = 205
365
 X = 205 x (365 / 374 ) =

 X = 74825 / 374 = 200.06689

Q3: A debt of RM720 on 30 November 2012 will amount to RM750 on 20 February 2013. Find the
rate of ordinary simple interest being charged using the approximate time?

( from 30 November 2012 to 20 February 2013 approximate time is 80 day’s )

Daily interest : ( 750 -720 ) / 80 = 0.375

Daily interest rate : 0.375 / 720 = 0.000521
Annual interest rate : 0.375/ 720 x 365 = 0.1901

( interest rate calculation formula )

Q4 : On 5 July 2012, Ah Wong borrows RM900 and agrees to repay the loan in 100 days at 10% per
annum simple interest. Find the simple amount of the loan and the settlement date of the
loan, using the Banker’s Rule?

( the simple amount of the loan )

Rm 900 x ( 1+10% x (100/365) )

The calculation
of the simple
= RM 924.66 interest

AND THE SETTLEMENT DATE OF THE LOAN : 15TH October 2012 ( 102) DAY’S

Q5 : How long does it take for a sum of money to double itself at a simple interest rate of 6% per
annum?

BASED ON THE GIVEN CONDITIONS FORMULATE :

 Let sum of money=Rs. X

 Therefore amount=Rs. 2x
 Interest=sum∗ time ∗R/100
=x∗ time ∗6 /100
=6x∗ time /100
Amount=sum +interest
2x=x+6x∗ time /100
2x=100x+6x∗ time/100
200x=100x+ 6x∗ time
100x=6x∗ time
time=100x.
time=16. 6years
Q6: On 2 November 2006, Hilmi saved RM1,200 in an account that pays 8.6% per annum simple
interest. Three years later, he added another RM500 into the account. Find the amount in hisaccount
on 2 November 2012?
 BASED ON THE GIVEN :
1,200 x 8.6% = 103.2 ( interest for the three year’s )
 1,200 + 103.2 x 3 =1509.6
 ( 1509.6+ 500 ) x 8.6% = 172.82 ( the amount on 1 November 2009)
 1509.6 + 172.82 x 3 = 2028.06
 2012 – 2009 = 3 year’s

Q7: Eighteen months ago, a sum of money was invested. Now the investment is worth RM10,900.If
the investment is extended for another 20 months, it will become RM11,900. Find the original
principal and the simple interest rate that offered?

Then x*1+ 1.5y => 10900

X* (1+19/ 6y ) = 11900

So the p = 10,000
R = 6%
Q8: A certain sum of money is invested now. This investment will be worth RM5,500 after 15
months and RM5,800 after 24 months. Find the original principal and the simple interest ratewas
offered?

5800 -5500 = 300 = 100

1 – find the original principal ? 24-15 9 3
2 – the rate that was offered ?
 5500 - 15 X 100/3 = 5500 -500 = { RM 5000} ( OP )
So set the original principal is X
And the rate is Y  (100/3) / 5000 X 100% = 0.67 %

Q9: A TV commercial from a loan company states, ‘You only pay 50 cents a day for each RM100
borrowed’. If you borrow RM2000 for 100 days, what annual interest rate you paying?

2000/ 100 X 50 X100 = 100000/ 100 = 1000

1000/2000 = 0.5 = 50%

Q10: A debt of RM3,000 due six months ago and another RM5,000 due in 18 months are to be
settled by two equal payments, one at the end of four months and the other at the end of ten
months Assuming money is worth 9% per annum simple interest
Find the size of the payments using
a. The present as the focal date,
b. The end of 18 months as the focal date,

Simple interest :
FV= PV x (1+rt ) => PV = FV / (1+r x t )
FV = FUTURE VALUE
PV = PRESENT VALUE
R = INTEREST RATE PER PERIOD
T = NUMBER OF TOTAL PAYMENT

ASSUME THE PAYMENT OF THE DEBT OF RM 3,000 IS RM X

X / (1+9% x ( 6+ 4) ) + X / (1+ 9% x ( 6 + 10 )
12 = 3000
12

X / 1.075 + x 1.12 = 3000

X= 1645.56
ASSUME THE PAYMENT OF THE DEBT OF RM 5000 IS
RM Y
Y / (1+9% x 18+4 ) + Y / ( 1+9% x 18 + 10 ) = 5000
12 12

Y / 1.165 +Y / 1.21 = 500

Y= 2967.68

SO THE SIZE OF THE PAYMENT IS :

1645.56+ 2967.68 = RM 4613.24