ADDITIONAL MATHEMATICS

PROJECT WORK 2007

FORM 5

NAME : LOW YING HAO

I/C : 901002-01-6021

CLASS : 5 GEMILANG
 ADDITIONAL MATHEMATICS PROJECT WORK 2007
FORM 5

Ang, Bakar and Chandran are friends and they have just graduated from a
local university. Ang works in a company with a starting pay of RM 2000 per month
.Bakar is a sales executive whose income depends solely on the commission he
receives. He earns a commission of RM1000 for the first month and this commission
increases by RM1000 for each subsequent month. On the other hand, Chandran
decides to go into business. He opens a café and makes a profit of RM100 in the first
month. For the first year, his profit in each subsequent month is 50% more than that
the previous month.

In the second year, Ang receives a 10% increment in his monthly pay. On the
other hand, the commission received by the Bakar is reduced by RM50 for each
subsequent month. In addition, the profit made by Chandran is reduced by 10% for
each subsequent month.
Solution
Question 1
(a) How much does each of them receive at the end of the first year?
(Two or more methods are required for this question.)

Method 1:
Calculation month by month

Answer as shown in table below

Year1 Ang(RM) Bakar(RM) Chandran(RM)

Jan 2000.00 1000.00 100.00
Feb 2000.00 1100.00 150.00
Mar 2000.00 1200.00 225.00
Apr 2000.00 1300.00 337.50
May 2000.00 1400.00 506.25
Jun 2000.00 1500.00 759.38
Jul 2000.00 1600.00 1139.06
Aug 2000.00 1700.00 1708.59
Sep 2000.00 1800.00 2562.89
Oct 2000.00 1900.00 3844.34
Nov 2000.00 2000.00 5766.50
Dec 2000.00 2100.00 8649.76
Toatal 24000.00 18600.00 25749.27

At the end of the 1st year:

Ang : RM24000.00
Bakar : RM18600.00
Chandran : RM25749.27

Method 2:
Arithmetic progression and Geometric progression

For Ang used used arithmetic progression.

Wher
a = fisrt term
Tn = a+(n-1)d e
d = common difference

where ,
a = beginning of month a = 2000
n = no. of month n = 12
d = salary change per month d = 2000

T12 = RM2000+(12-1)(RM2000)
= RM2000+(11)(RM2000)]
= RM 24000

Therefore the total at the end of the 1st year 1 is RM 24000.00 .

For Bakar used arithmetic progression.

n Wher
a = fisrt term
Sn = [2a+(n-1)d] e
2
d = common difference

where ,
a = beginning of month a = 1000
n = no. of month n = 12
d = salary change per month d = 1100 - 1000
= 100

12
S12 = [2(RM1000)+(12-1)(RM100)]
2
= 6 [RM2000+(11)(RM100)]
= RM 18600

Therefore the total at the end of the 1st year 1 is RM 18600.00 .

For Chandran used geometric progression.

a (r n-1) Wher
a = fisrt term
,r> e
Sn =
r-1 1 r = common
ratio

where ,
a = beginning of month a = 100
n = no. of month n = 12
r = ratio of salary change per month r 150
=
100

(RM100) ((150/100) 12 – 1)
S12 =
(150/100) -1
= RM25749.26758

Therefore the total at the end of the 1st year 1 is RM 25749.27 .

(b) What is the percentage change in their total income for the second year compared
to the first year? Comment on the answers.

For 2nd Year the income for Ang, Bakar,Chandran

Year 2 Ang(RM) Bakar(RM) Chandran(RM)

Jan 2200.00 2050.00 7784.78
Feb 2200.00 2000.00 7006.30
Mar 2200.00 1950.00 6305.67
Apr 2200.00 1900.00 5675.10
May 2200.00 1850.00 5107.59
Jun 2200.00 1800.00 4596.83
Jul 2200.00 1750.00 4137.15
Aug 2200.00 1700.00 3723.44
Sep 2200.00 1650.00 3351.09
Oct 2200.00 1600.00 3015.98
Nov 2200.00 1550.00 2714.39
Dec 2200.00 1500.00 2442.95
Total 26400.00 21300.00 55861.28

For Ang, the % of change is

(RM26400.00 – RM24000.00)÷RM24000 X 100%
= 10 %

For Bakar, the % of change is

(RM21300.00 - RM18600.00)÷RM 18600.00 X 100%
= 14.52%

For Chandran, the % of change is

(RM55861.28 – RM25749.27)÷RM 25749.27 X 100%
= 116.94%

Comment:

For the 3 different source of income that are fixed salary for Ang, salary based on
commission for Bakar and business profit for Chandran, the highest percentage of
income change is Chandran which record a change of 116.94% whereas the lowest
percentage change is Ang which is 10% only.
(c) Ang, Bakar and Chandran, each decided to open a fixed deposit account of
RM10 000 for three years without any withdrawal.

- Ang keeps the amount at an interest rate of 2.5% per annum for a duration of
1 month renewable at the end of each month.

- Bakar keeps the amount at an interest rate of 3% per annum for a duration of
3 months renewable at the end of every 3 months.

- Chandran keeps the amount at an interest rate of 3.5% per annum for a
duration of 6 months renewable at the end of every 6 months.

(i) Find the total amount each of them will receive after three years.

Method 1 : Month by month calculation

Fixed Deposit Ang(RM) Bakar(RM) Chandran(RM)
Investment 10000.00 10000.00 10000.00
Year 1
Jan 10020.83
Feb 10041.71
Mar 10062.63 10075.00
Apr 10083.59
May 10104.60
Jun 10125.65 10150.56 10175.00
Jul 10146.75
Aug 10167.89
Sep 10189.07 10226.69
Oct 10210.30
Nov 10234.57
Dec 10252.88 10303.39 10353.06
Year 2
Jan 10274.24
Feb 10295.65
Mar 10317.10 10380.67
Apr 10338.59
May 10360.13
Jun 10381.71 10458.52 10534.24
Jul 10403.34
Aug 10425.02
Sep 10446.74 10536.96
Oct 10468.50
Nov 10490.31
Dec 10512.16 10615.99 10718.59
Year 3
Jan 10534.06
Feb 10556.01
Mar 10578.00 10695.61
Apr 10600.04
May 10622.12
Jun 10644.25 10775.83 10906.17
Jul 10666.43
Aug 10688.65
Sep 10710.92 10856.64
Oct 10733.23
 Nov 10755.59
Dec(total amount for 10778.00 10938.07 11097.02
3years)

Method 2: Geometric progression method

For Ang,

T = arn-1
where ,
a = beginning of the month a = 10000
r = common ratio of interest rate r = 1 + 0.025÷12
n = no. of period n = 37

Total amount = 10000(1 + 0.025÷12)37 – 1

= RM10778.00

For Bakar,

T = arn-1
where ,
a = beginning of the month a = 10000
r = common ratio of interest rate r = 1 + 0.03÷4
n = no. of period n = 13

Total amount = 10000(1 + 0.03÷4)13 – 1

= RM10938.07

For Chandran

T = arn-1
where ,
a = beginning of the month a = 10000
r = common ratio of interest rate r = 1 + 0.035 ÷ 2
n = no. of period n=7

Total amount = 10000(1 + 0.035÷2)7 – 1

= RM11097.02
(ii) Compare and comment on the difference in the interests received. If you were to
invest RM10 000 for the same period of time, which fixed deposit account would you
prefer? Give your reasons.

The difference in the interest receive for

Ang,
RM 10778.00 – RM 10000.00 = RM 778.00

Bakar,
RM 10938.07 – RM 10000.00 = RM 938.07

Chandra,
RM 11097.02 – RM 10000 = RM 1097.02

Thus, comparing the above values for the difference in interest receive
Chandran has the highest value of interest receive at the interest rate of 3.5% per
annum 6 months renewable whereas Ang has the lowest value of interest receive at
the interest rate of 2.5% per annum renewable monthly.

If I were to invest RM10000 for a period a time, I definitely choose Chandran

method because it yield the highest interest earn among the three.
Further Exploration
Question 2

(a)When Chandran's first child, Johan is born, Chandran invested RM300 for
him at 8% compound interest per annum. He continues to invest RM300 on each of
Johan's birthday, up to and including his 18th birthday. What will be the total value
of the investment on Johan's 18th birthday?

Year Saving Chandran’s Son,Johan(RM)

0 300.00
1 324.00
2 673.92
3 1051.83
4 1459.98
5 1900.78
6 2376.84
7 2890.99
8 3446.27
9 4045.97
10 4693.65
11 5393.14
12 6148.59
13 6964.48
14 7845.63
15 8797.28
16 9825.07
17 10935.07
18 12133.88

Tn = (Tn-1 X 1.08%) + RM300

For example,

Year 1 ,
T1 = RM300 X 1.08%
= RM324

As year 1 is the starting year thus Chandran has not invested the additional RM300.

Year 2,
T2 = (RM324 +RM300) X 1.08%
= RM673.92

Year 17,
T17 = (RM9825.07+RM300) X 1.08%
= RM10935.07

Thus, Year 18
T18 = (RM10935.07+RM300) X 1.08%
= RM12133.88

(b) If Chandran starts his investment with RM500 instead of RM300 at the same
interest rate, calculate on which birthday will the total investment be more than
RM25 000 for the first time.

Based on the question , the initial investment of Chandran has changed from
RM300 to RM500 but remain RM300 in the subsequent years of investment.

Year Saving Chandran’s Son,Johan(RM)

0 500.00
1 540.00
2 907.20
3 1,303.78
4 1,732.08
5 2,194.64
6 2,694.22
7 3,233.75
8 3,816.45
9 4,445.77
10 5,125.43
11 5,859.47
12 6,652.22
13 7,508.40
14 8,433.07
15 9,431.72
16 10,510.26
17 11,675.08
18 12,933.08
19 14,291.73
20 15,759.07
21 17,343.79
22 19,055.30
23 20,903.72
24 22,900.02
25 25,056.02

Based on the table constructed, the total investment will be more than RM25000 the
first time is at year 21.