ADDITIONAL MATHEMATICS PROJECT WORK 1/2012

NAME: CLASS: IC NUMBER: TEACHER: SCHOOL:

OBJECTIVES

The aims of carrying this project works are: To apply and adapt a variety of problem-solving strategies to solve problems To improve thinking skills To promote effective mathematical communication To develop mathematical knowledge to problem solving in a way that increases students interest and confidence To use the language of mathematics to express mathematical ideas precisely To develop positive attitude towards mathematics

ACKNOWLEDGEMENT
First and foremost I would like to thank God that finally, I have succeeded in finishing this project work. I would like to thank my beloved Additional Mathematics teacher, .................................... for all the guidance she had provided me during the process in finishing this project work. I also appreciate her patience in guiding me completing this project work. I would like to give a thousand thanks to my father and mother for giving me their full support in this project work, financially and mentally. They gave me moral support when I needed it. I would also like to give my thanks to my fellow friends who had help me in finding the information that Im clueless of and the time we spent together in study groups on finishing this project work. Last but not least, I would like to express my highest gratitude to all those who gave me the possibility to complete this task. I really appreciate all the help I got. Again, thank you very much.

CONTENTS

No. 1 2 3 4

Title Objectives Acknowledgement Introduction Part 1 Part 1 (a) Part 1 (b)(i)

Pages 2 3 4 5-9

5 6 7 8 9 .

Part 1 (b)(ii) Part 2 Part 3 Further Exploration Conclusion Reflection

10 11 11 12 13

INTRODUCTION

The most common types of loans come from bank which exists to lend money. So it not surprise that banks offer a wide variety of ways to fund a business growth. Heres look at how lenders generally structure loans with some common variations: Line of credit loan: The most useful type of loans for a small business is the line of credit loan. This is a short term loans that extend the cash available in your businesss checking account to upper limit of the loans. Balloons loans: These loans only the interest to be paid off during the life of the loan with the final balloon payment of the principal due to last day. Interim loans: Interim financing is often used by contractors building new facilities. When the building is finished a mortgage on the property will be used to pay off the interim loan.

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MELAKA EDUCATION DEPARTMENT

ADDITIONAL MATHEMATICS PROJECT WORK 1/2012

PART 1
Banks are always competing to give the best offer of loans to potential customers. (a) Get personal loan brochures from at least three banks in home town. You can even get them from the internet. Construct a table of comparison between three brochures. Your table should include: Total loan Interest rate Monthly payment Years/months of loan (b) Find the meaning of the following terms (i) Interest rate (ii) Monthly payment

Personal loans brochures/info

Personal loan brochure from Bank Simpanan Malaysia (BSN) Personal loan brochure from Maybank Personal loan brochure from CIMB Bank (a) Table of comparison between the banks : TYPE OF BANKS Bank Simpanan Nasional (BSN) Maybank CIMB Bank (b)(i) An interest rate is the rate charged or paid for using money. You are charged an interest rate when you borrow money and paid an interest rate when you loan money (placing it in a savings or investment account is like a loan to the bank).With credit cards and loans, the interest rate directly influences the cost of borrowing. Lower interest rates mean you'll pay a lower cost, while higher interest rates mean a higher cost. You'll see the cost reflected in your finance charges. Interest rate is typically influenced by your credit score. Low credit scores lead to high interest rates and vice versa. Interest rates are typically expressed as an annual percentage rate -the yearly cost (or benefit) of borrowing (or loaning) money. (b)(ii) Monthly instalment is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. Equated monthly instalments are used to pay off both interest and principal each month, so that over a specified number of years, the loan is paid off in full. TOTAL LOAN RM5000 RM5000 RM5000 YEARS OF LOAN 5 Years 5 Years 5 Years INTEREST RATE 4.10% 11% 24% MONTHLY PAYMENT RM 101.00 RM 129.17 RM 184.00

PART 2

Encik Ahmad plans to take a personal loan of RM 100000 for duration of 156 months. As a friend of Encik Ahmad and by comparing the instalment rates and the monthly instalment from the three brochures, which bank would you suggest Encik Ahmad get his personal loan? Give your reason why. As a friend of Encik Ahmad, I would suggest him to get his personal loan from Bank Simpanan Nasional (BSN). I have constructed a table to show comparison between the banks if Encik Ahmad plans to take a personal loan of RM 100,000 for duration of 156 months (13 Years) TYPE OF BANK TOTAL LOAN YEARS OF LOAN Bank Simpanan Nasional (BSN) Maybank CIMB Bank RM100000 RM100000 RM100000 13 Years 13 Years 13 Years INTEREST RATE 4.8% 9% 24% MONTHLY PAYMENT RM 1042.00 RM 1391.03 RM 2641.03

Based on the table I have constructed, the lowest interest rate is from Bank Simpanan Nasional which is only 4.8 %. Encik Ahmad does not have to pay more on interest as the money can be used for other expenses. For monthly payment, Encik Ahmad only has to pay RM 1042 per month. Compared to Maybank and CIMB Bank. Bank Simpanan Nasional monthly payment is the lowest. So there is no doubt why I suggest Encik Ahmad to get his personal loan from Bank Simpanan Nasional as the bank offers the best rate to their customers.

PART 3

Find the number of months that Encik Ahmad would take to have paid at least RM 40,000. 156 months RM100, 000 = 1.56 x 10^ (-3) = 1.56 x 10(-3) x RM 40,000 = 62.4 = 63 months.

FURTHER INFORMATION Calculate how much Encik Ahmad would save if he makes the loan repayment in 10 years. 10 years RM1, 234.00 x 120 months = RM 148, 080 13 years RM 1, 042x 156 months = RM162, 552.00 = RM162, 552.00- RM148, 080.00 = RM14, 472.00

CONCLUSION

After I accomplished this project, I have found that the mathematics is fun and very useful in daily life. I have learnt the important of perseverance as time will be inverted to ensure the completion and excellence of this project. On the other hand, I have learnt the virtue to making together as I have helped and received help from my fellow peers in the production of this project. I realised the important to be thankful and appreciative during completing this task. This is because I able to apply my mathematical knowledge in daily life and appreciate the beauty of mathematic. This project is a several training stage for me to prepare myself for the demands of my future undertaking in the university and work life.

REFLECTION

While I conduct this project, there is a lot of information that I have found. I have learnt how loan is calculated. Apart from that, this project encourages the student to work together and share their knowledge. It is also encourages student to gather information from the internet, improve thinking skills and promote effective mathematical communication. Not only that, I had learned some moral values that I can practice. This project had taught me to responsible on the works that are given to me to be completed. This project also had made me felt more confidence to do works and not to give easily when we could not find the solution for the question. I also learned to be more discipline on time, which I was given only 3 weeks to complete this project and pass up to my teacher just in time. I also enjoy doing this project as I need to spend my time with friends to complete this project and it had tighten our friendship