# ADDITIONAL MATHEMATICS PROJECT WORK 2/2012

GROUP 5

USES OF STATISTICS IN OUR DAILY ECONOMIC ACTIVITY

Presented by…

KHO LIK FA (K)

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**CINDY anak BARE
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**CHRISYE STEPHANE ANAK NINGKAN
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**ELVERNA PRESNEY ANAK JABANG
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**SELIA SELIANA CHANDU ANAK DEPA
**

()

MR. JASON LEE YEONG CHERNG

CONTENT

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CHAPTERS 1 2 3 4 5 6 7 8 9 10 11

TITLES CONTENT APPRECIATION OBJECTIVES INTRODUCTION PART A PART B PART C PART D FURTHER EXPLORATION CONCLUSION REFLECTION

PAGES 2 4 6 8 11 15 19 24 26 28 30

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APPRECIATION
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We help each other until we finished this project work. we would like to thank our classmates who shared ideas and providing some help on solving problems. he will try his best to teach us patiently until we have done the project work. we would like to thank the proprietor of the shop who was willing to share their experience on business activity and the experience on saving money with us. When we face some difficulties on doing tasks. Then. After that. such as money. Mr Jason Lee Yeong Cherng for guiding us throughout this project. They contribute their time and spirit on sharing their experience with us. School also provides us space to discuss and carry out this project work. Next.First of all. we would like to thank our school for giving us the chance to create this project work. we would like to thank our Additional Mathematics teacher. strength and health to carry out this project work. books. Not forgetting our beloved parents who provided everything needed in this project work. Lastly. computer and so on.
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. Internet. we would like to thank God for giving us energy. Their support may raise the spirit in us to do this project work smoothly.

OBJECTIVES
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and to share knowledge in an engaging and healthy environment. Realise that mathematics is an important and powerful tool in solving real-life problems and hence develop positive attitude towards mathematics. to cooperate. Stimulates and enhances effective learning. Train ourselves not only to be independent learners but also to collaborate. This project is done in groups of four. Enhance acquisition of mathematical knowledge and skills through problem-solving in ways that increase interest and confidence. Practise our self to complete a report for the use when we reach Form 5 next year.
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. Acquire effective mathematical communication through oral and writing and to use the language of mathematics to express mathematical ideas correctly and precisely.All of our students in 5 Science 1 are required to carry out an Additional Mathematics Project Work during mid-term holiday. Knowledge and skills are applied in meaningful ways in solving real-life problems. we are to gain valuable experiences and able to: Solve routine and non-routine problems. Use technology especially the ICT appropriately and effectively. Improve our thinking skills. Prepare ourselves for the demand of our future undertakings and in workplace. Upon completion of the Additional Mathematics Project Work. Expressing ones mathematical thinking. reasoning and communication are highly encouraged and expected. Realize the importance and the beauty of mathematics. Train ourselves to appreciate the intrinsic values of mathematics and to become more creative and innovative.

INTRODUCTION
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and the NASDAQ Composite track the performance of selected large and powerful companies in order to evaluate and predict economic trends. prices. or real GDP. bond interest rates. and is integral to calculations used to adjust salaries. For example. and employment. price or both. Influential global financial indices such as the Global Dow. dollar (estimated: $3. markets. The Big
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. Index numbers are also differentiated according to the number of commodities or products included in the comparison. or $1. A very famous example of a composite index is the Retail Prices Index (RPI).57). Some indices display market variations that cannot be captured in other ways.S. Economic indices (index. an index is a statistical measure of changes in a representative group of individual data points. including company performance.5725 U. productivity. prices. which measures the changes in costs in the items of expenditure of the average household.S. or $6. A price index measures the change in the money value of an item (or group of items) over time whereas a quantity index measures the non-monetary value of an item (or a group of items) over time. The least relatively expensive Big Mac price occurs in Hong Kong. prices. These data may be derived from any number of sources. a value index is one that represents a comparison of the total value of production or sales in two time periods without regard to whether the observed difference is a result of differences in quantity. The Consumer Price Index tracks the variation in prices for different consumer goods and services over time in a constant geographical location. In economics and finance. A price index represents a comparison of prices between two time periods and. domestically produced. finally.S. though some legacy international companies are included.S. Market performance indices include the labour market index / job index and proprietary stock market index investment instruments offered by brokerage houses. The GDP Deflator Index. The Dow Jones Industrial Average and the S&P 500 primarily track U. and tax thresholds for inflation. measures the level of prices of all new. also known as a relative. quantities or values comparing two time periods or two points in time. with a U. the Economist provides a Big Mac Index that expresses the adjusted cost of a globally ubiquitous Big Mac as a percentage over or under the cost of a Big Mac in the U. at a 52% reduction from U.S.S. is a comparison involving only one item but an index whose calculation is based on several items is known as an aggregate or composite index. final goods and services in an economy. The time period that serves as a basis for the comparison is called the base period and the period that is compared to the base period is called the given or current period. at an 84% increase over U. An index number that represents a percentage comparison of the number of cars sold in a given month as compared with that of a base month is a quantity index.S. Norway prices reflect most relatively expensive Big Mac. A simple index.71 U.INDEX An index number is a percentage ratio of prices. plural) track economic health from different perspectives.

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.Mac index is used to predict currency values. finally. and provides a currency investment opportunity. An index number that represents a percentage comparison of the number of cars sold in a given month as compared with that of a base month is a quantity index. Index numbers are also differentiated according to the number of commodities or products included in the comparison. quantities or values comparing two time periods or two points in time. A price index represents a comparison of prices between two time periods and. which measures the changes in costs in the items of expenditure of the average household. The time period that serves as a basis for the comparison is called the base period and the period that is compared to the base period is called the given or current period. A simple index. it would be assumed that Hong Kong currency is undervalued. From this example. An index number is a percentage ratio of prices. is a comparison involving only one item but an index whose calculation is based on several items is known as an aggregate or composite index. A very famous example of a composite index is the Retail Prices Index (RPI). A price index measures the change in the money value of an item (or group of items) over time whereas a quantity index measures the non-monetary value of an item (or a group of items) over time. also known as a relative. price or both. a value index is one that represents a comparison of the total value of production or sales in two time periods without regard to whether the observed difference is a result of differences in quantity.

PART A
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05 3.00 3.10 3.20
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.10 3.10 3. three months auto renewable.05 3.15 3.a. Bank B and Bank C. Given below are the interest rates offered by 3 different banks: Bank A.10 3.15 3.10 3. You are to calculate the interest that can be obtained based on the given rates.10 3.10 3.00 3.10 3.05 3.10 3.10 3.20 3.) 3. Compare and discuss which bank will you choose and explain why.The school Cooperative in one of the schools in your area made a profit of RM 50 000 in the year 2011.20 3.20 3. The interest collected at the end of this period will be the poor students in the school.10 3.25 BANK B (% p.20 3.05 3. PERIOD 1 MONTH 2 MONTH 3 MONTH 4 MONTH 5 MONTH 6 MONTH 7 MONTH 8 MONTH 9 MONTH 10 MONTH 11 MONTH 12 MONTH BANK A (% p. if the money is to be kept in the bank for a period of one year for monthly auto renewable.10 3.10 3.a.20 3.00 3.15 3.a. The cooperative plans to keep the money in a fixed deposit account in a bank for one year.05 3.15 BANK C (% p.) 3.20 3.10 3.) 3. As a member of Board of Cooperative you are to find the total interest which can be collected from different banks. six months auto renewable and twelve months auto renewable without withdrawal.10 3.00 3.

20 T5 = = = = 50 50 56 56 000 x 1.0300 Three months auto renewable r = = = 1.03054 384.80 T13 = = = = 50 50 71 71 000 x 1.031013-1 000 x 1.9754 604.00 T2 = 50 000 x 1.0320 Twelve months without withdrawal r = = = 1.03397 123.79279 384.04434 288.03155-1 000 x 1.03252-1 = 50 000 x 1.0325 Bank B Monthly auto renewable r = = = 1.03202 = 53 251.03251 = 51 625.030012 288.Solution by Geometric Progression Solution Tn = arn–1 BANK A Monthly auto renewable r = = = 1.00 T3 = 50 000 x 1.0310 Three months auto renewable r = = = 1.030013-1 000 x 1.03055-1 000 x 1.00 r= a = 50 000
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.03154 603.031012 123.0315 T5 = = = = 50 50 56 56 000 x 1.00 T13 = = = = 50 50 72 72 000 x 1.0315 Six months auto renewable r = = = 1.03203-1 = 50 000 x 1.

03103-1 000 x 1.03054 384.03102 148.0300 Three months auto renewable r = = = 1.0310 Twelve months without withdrawal r = = = 1.80 53 148.00 56 384.03103-1 000 x 1.00
BANK C Monthly auto renewable r = = = 1.80 53 148.03151 = 51 575.00 51 575.03055-1 000 x 1.00
BANK B (RM) 71 288.03152-1 = 50 000 x 1.00
BANK C (RM) 71 288.0310 T3 = = = = 50 50 53 53 000 x 1.00 53 251.030013-1 000 x 1.00 56 384.05 148.00 T3 = = = = 50 50 53 53 000 x 1.79279 384.80 T13 = = = = 50 50 71 71 000 x 1.04434 288.05 148.030012 288.00 51 575.00
PERIOD MONTHLY RENEWABLE THREE MONTHS RENEWABLE SIX MONTHS RENEWABLE TWELVE MONTHS RENEWABLE
BANK A (RM) 72 123.03152-1 = 50 000 x 1.0315 Six months auto renewable r = = = 1.
Six months auto renewable r = = = 1.20 51 625.
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. I will choose Bank A because the interest of Bank A is higher than Bank B and Bank C.0325 T2 = 50 000 x 1.03151 = 51 575.0325 T2 = 50 000 x 1.00 56 604.00
Therefore.03102 148.00 T5 = = = = 50 50 56 56 000 x 1.00
Twelve months without withdrawal r = = = 1.

PART B
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076 Cost for a rim of paper (500 pieces) = RM 10 Price of a bottle of toner (10 000 pieces) = RM 80
(ii) If your school cooperative can photocopy an average of 10 000 pieces per month and charges a price of 10 cent per piece.10 – RM 0.(a) The Cooperative of your school plans to provide photocopy service to the students of your school.10 Cost for a photocopy of a piece of paper = RM 0. (i) What is the cost to photocopy a piece of paper? Solution by Mathematical Solution Rental for photocopy Cost for a photocopy of a piece of paper ) machine/month ( )( = = RM 480 = RM 0.076
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. Solution by Mathematical Method Charge of a piece of photocopy Profit obtained = (RM 0. A survey was conducted and it is found out that rental for a photo copy machine is RM 480 per month. cost for a rim of paper (500 pieces) is RM 10 and the price of a bottle of toner is RM 80 which can be used to photocopy 10 000 pieces of paper. calculate the profit which can be obtained by the school cooperative.076)(10 000) of a paper = RM 240 = RM 0.

toner and paper as shown in table below: (i) Calculate the percentage increase in photocopying a piece of paper based on the year 2012. the cost for photocopying 10 000 pieces of paper increased due to the increase in the price of rental.1x – 840 = 240 x = = 10 800
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.084 METHOD 2 by Price Index Solution I= Price Index. Solution METHOD 1 by Mathematical Solution Cost of photocopy of a piece of Percentage increase paper in 2013 = x 100% = = RM 0.1(x) – 10 000 (0. I Rental Toner Paper Ῑ =
( )( ) ( )( ) ( )( )
= 10.5263%
Ῑ=
∑ ∑
125 120
Weightage. how many pieces of paper should the cooperative photocopy in order to get the same amount of profit? Solution by Quadratic Equation Solution Pieces of paper should cooperative photocopy 0. W 25 5 12 Percentage increase =
( )–
x 100%
= = 111.5263%
(ii) If the school cooperative still charge the same amount for photocopying a piece of paper.(b) For the year 2013.17
= 10. using two different methods.084) = 240 0.

084)(10 000) = RM 160
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.10)(10 000) – (RM 0. how much profit can Cooperative obtain? Solution by Mathematical Solution Profit obtained = (RM 0.(iii) If the cooperative still maintain to photocopy the same amount of paper per month.

PART C
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(You can give your solution in table form. and withdraw monthly to pay for the hire purchase every beginning of a month. Excel or graph)
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. the school cooperative needs more space for keeping the increasing amount of stock.a. As a result.8% p. Therefore the school cooperative plans to expand the store-room.The population of the school is increasing. in a bank then borrow the RM 150 000 from a bank and pay for the hire purchase for a period of 10 years with a interest rate of 4. Make a conjecture on which is a better way for the school cooperative to pay.a. It is estimated that cost for renovation is RM 150 000. whether to pay the whole lump sum in cash or keep the RM 150 000 in a fixed deposit account at a rate of 6% p. Make a conclusion and give your reason.

84 188 671.84 223 821.84 196 071.00 1 850.84 201 621.00 1 850.84 244 171.00
178 652.00 1 850.00 1 850.00 1 850.84 212 721.00
4.84 221 971.84 214 571.00 1 850.40
4.84 240 471.00 1 850.00 1 850.00 Money Left (RM) 251 571.00 1 850.00 1 850.84 249 721.84 216 421.84 210 871.00 1 850.84
6.84 199 771.84 236 771.84 229 371.84 192 371.00 1 850.00 1 850.00 1 850.00 1 850.80
6.00 1 850.00 1 850.00 1 850.80
6.84 233 071.84 207 171.00 1 850.84 183 121.00 1 850.00 1 850.00 1 850.00 1 850.00 1 850.84 246 021.00 1 850.84 247 871.00 1 850.00 1 850.84 225 671.00
159 000.84 227 521.84 194 221.00 1 850.00
150 000
4.84 238 621.00 1 850.Solution by Excel Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 Interest (%) Total Money (RM) Interest Rate/year (%) Loan/month (RM) 1 850.00 1 850.84 220 121.00 1 850.00 1 850.84 231 221.00 1 850.84 205 321.84 218 271.00 1 850.00
168 540.84 186 821.84 234 921.84 242 321.84 184 971.00
4.80
6.00 1 850.84 190 521.00 1 850.84 203 471.00 1 850.80
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.84 197 921.84 209 021.

84 172 021.00 1 850.84 153 521.00 1 850.00 1 850.80
1 850.54
4.84 179 421.84 122 071.84 159 071.00 1 850.84 170 171.84 123 921.84 168 321.84 166 471.84 146 121.00 1 850.84 118 371.00 1 850.84 116 521.84
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.80
6.00 1 850.84 109 121.00 1 850.00
200 733.00 1 850.84 112 821.00
189 371.84 155 371.84 151 671.00 1 850.00 1 850.84 103 571.84 162 771.00 1 850.00 1 850.84 114 671.84 110 971.00
181 271.00 1 850.00 1 850.00 1 850.84 149 821.00 1 850.84 120 221.39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 81
6.84 138 721.84
4.00 1 850.00 1 850.84 144 271.84 101 721.00 1 850.00 1 850.84 125 771.84 131 321.84 177 571.00 1 850.00 1 850.00 1 850.84 129 471.84 140 571.00 1 850.84 107 271.00 1 850.00 1 850.84 160 921.84 164 621.00 1 850.84 147 971.00 1 850.00 1 850.00 1 850.00 1 850.84 173 871.84 142 421.84 127 621.84 133 171.00 1 850.84 136 871.00 1 850.00 1 850.00 1 850.00 1 850.00 1 850.00 1 850.00 1 850.84 175 721.00 1 850.00 1 850.80
6.87
4.84 135 021.00
212 777.00 1 850.84 105 421.84 157 221.

84 33 271.00 1 850.00 1 850.84
4.00 1 850.00 1 850.00 1 850.84 90 621.84 96 171.84 98 021.84 66 571.84 62 871.00 1 850.84 88 771.00 1 850.84 81 371.00 1 850.84 51 771.00 1 850.00 1 850.
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.84 72 121.00 1 850.00 1 850.00 1 850.84 68 421.00
253 421.84 73 971.00 1 850.84 48 071.84 38 821.84 57 321.84 92 471.00 1 850.00 1 850.84 40 671.00 1 850.00 1 850.00 1 850.21
4.00
239 077.00 1 850.84 75 821.80
1 850.84 59 171. That mean.84 85 071.00 1 850.84 35 121.00 1 850.54
4.00 1 850.00 1 850.84 70 271.00 1 850.84 79 521.00 1 850.83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120
6.00 1 850.00 1 850.84 44 371.00 1 850.84 55 471.84 64 721.00
225 544.00 1 850. keeping the RM 150 000 in a fixed deposit account then borrow the RM 150 000 from a bank is better way to expand the store-room.84 94 321.84 77 671.00 1 850.00 1 850.00 1 850.84 49 921.84 42 521.00
99 871.80
6.84 61 021.84
∴ Money is still left after the loan has been paid-out for the period of 10 years.84 31 421.84 36 971.84 46 221.84 53 621.00 1 850.80
6.00 1 850.00 1 850.84 86 921.00 1 850.84 83 221.

PART D
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. So the total amount in the bank is RM 53 561. then you will gain RM 5 000 after two years. When one keeps RM 50 000 with the interest of 3.69 in our saving account. Suggest a better way of keeping the money in this bank. and not on any interest that is earned.
Solution by Dictionary (source: Oxford Advanced Learner’s Dictionary 6th Edition) Compound interest Interest that is paid both on the original amount of money saved and on the interest that has been added to it.25 after two years. For example.The cooperative of the school also has another amount of RM 50 000.
Simple interest Interest that is paid only on the original amount of money that you invested. then we will only have RM 125 000 in our savings account.5% per annum and a simple interest rate of 5% per annum. For example. Compound interest is suitable for savings in a long period. Therefore. Explain the meaning of “compound interest” and “simple interest”.5 % of compound interest plan for 30 years then we will have RM 140 339.25. then you will gain RM3 561. when you keep RM50 000 with an interest of 5% for 2 years. It is because of its interest is higher than compound interest and it is paid only on the original amount of money that you invested. But when one keeps RM 50 000 for the plan of 5 % of simple interest for 30 years. State a suitable period for keeping the money for each plan. RM50 000 for the plan of 3.
Simple interest is suitable for savings in a short period. The bank offered a compound interest rate of 3. The cooperative plans to keep the money in a bank. and not on any interest that is earned. it is better to save in the compound interest plan account for long-term savings and simple interest for short-term savings.5 % of compound interest for 2 years. It is because of the original amount of money saved and on the interest that has been added to it. Explain why. So the total amount in the bank is RM 55 000 after two years.

FURTHER EXPLORATION
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023136 10794.71322 18500.08 a = 5 000 Tn = arn-1 Let.
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.90369 34242.5053 23304.62499 11658. 31 – 1 = 30.640384 7934.
∴ Ahmad will have a saving of RM 50 000 at the age of 30.08n-1) ∴ 1.When Ahmad was born.85058 13598.a.651051 9995.4448 7346. The interest rate offered was 8. At what age will Ahmad have a saving of RM 50 000.56 6802.78572 25169.08n-1 log 1.08 Terms.121344 9254.30734 43135.371615 8569. Tn 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 by Excel Value of saves 5000 5400 5832 6298.16858 27182.92 n > 30.08n-1 (n-1) log 1.0975 21578.11863 14685.19499 12590.28445 Age of Ahmad 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
> > > >
50 000 10 log 10 log 10
n-1 > n-1 > 29. Tn > 50 000 5 000 (1.09027 19980.31823 31705. his parents invested an amount of RM 5 000 in the Amanah Saham Bumiputera (ASB) for him.0% p.37449 50313.70206 29357.37598 36981.76606 39940. if he keeps the money without withdrawal?
Solution by Geometric Progression Tn = 50 000 r = = 1.92 The least value of n is 31.84557 17129.96812 15860.53193 46586.

CONCLUSION
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It is not just widely use in the business segment but also in banking skills. answering the questions. plan a table and some problem solving. we saw that usage of index number is important in our daily business activity. loaning technique. predict the future plans of money and so on. We would like to thanks the one who contribute the idea of index number to help us a lot in our business activity together in our daily life.After doing research.
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. Without this. shopkeeper will get a lot of loses in the business activity. counting the cost of a product. We learnt a lot of lesson from this Additional Mathematics Project Work such as banking account skills.

REFLECTION
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And now. We realized something important from it! We really love Additional Mathematics. You are our real friend. You are our family. The killer subject. And you are our life… WE LOVE ADDITIONAL MATHEMATICS!
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. It was so easy to understand… Additional Mathematics. days and night to finish this project and also sacrificing our time for chatting and movies in this few weeks. there are several things that we want to say…
Additional Mathematics. Additional Mathematics. So unique from the other subject. But when we study hard. Spirit and energy for this project. You look so interest. That’s why we like you so much… After sacrificing our precious time.After by spending countless hours.

BYE..
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