Content c1 To c8 For Student

PERCENT, RATIO, VARIATION 1
CHAPTER 1
PERCENT, RATIO, VARIATION
Upon successful completion of the chapter, you should be able to:

convert percent to decimal
convert decimal to percent
calculate the ratio, percentage and variation
1.1 PERCENT
The word percent means per hundred. The symbol % is used to represent
percent, thus means to divide by one hundred. For example:
1.1.1 Changing percent into decimal:

To change percent into decimal, divide the percentage by 100%.
Example1.1:
Change each of the following percentage into decimal form.
1. 70% =
2. 5% =
3. 5.75% =
4. 11 % =
5. 6.3% =
1.1.2 Changing decimals into percent:

To change decimal number into a percent, multiply the decimal number by
100%.
Example1.2:
Change each of the following decimal number into percent.
1. 0.055 x 100% =
2. 0.354 x 100% =
3. 0.173 x 100% =
4. 0.025 x 100% =
5. 0.15 x 100% =
2 CHAPTER 1
1.2 RATIO
Ratio is used to compare two or more quantities of the same kind. It is
usually written in the simplest form. The ratio of a to b is written as: a : b
or , where b 0 and b must be the same unit.
Example 1.3:
Find the ratio and simplify to the lowest term.
a) 6 : 10 : 20
b) 24 : 60 : 36
Example 1.4:
Last semester 550 students enrolled in KPTM Bangi and 150 students in KPTM
Alor Setar and 350 in KPTM Kuantan. What is the ratio of number of students
in KPTM Bangi, Alor Setar and Kuantan?
Solution:
Example 1.5:
Rohana and Rohani divided RM306 between themselves at a ratio of 7 : 10.
How much money each of them will get?
Solution:
Example 1.6:
Ain, Aini and Aina shared a packet of sweets in the ratio of 3 : 2 : 4 . If the
total sweets in a packet are 540, how many sweets each of them get?
Solution:
Example 1.7:
Mariam, Kamal and Rohai set up a company with total capital investment of
RM30,000 in the ratio 2 : 5 : x. If Kamal invest RM15,000, find x.
Solution:
4 CHAPTER 1
Example 1.8:
Three siblings Hisham, Helmi and Intan planned to start a business in the
ratio of 3 : x : 7. If Hisham invested RM3000 and Helmi RM5000. Find:
a) The value of x.
Solution:
b) The total investment.
Solution:
Example 1.9:
Opah has RM126,000 to give to their grandchildren Kak Sal, Upin and Ipin in
the ratio of 4 : x : 5. If Ipin received RM52,500, find:
a) The value of x.
Solution:
b) The amount received by Kak Sal and Upin.
Solution:
1.3 VARIATION
Direct variation:
If two quantities change in the same way such that when one of them is
multiplied by a then the other is also multiplied by a, we say that the two
quantities are directly proportional to one another. Alternatively, we could
say that one quantity varies directly as the other.
If two quantities y and x are directly proportional, we write y x . The
symbol reads varies as .
Thus, if y x , then y cx , where c is a constant.
Example 1.10:
If y varies directly to x, and y = 10 when x = 5, find:
a) y in term of x.
Solution:
b) y if x = 15
Solution:
c) x if y = 50
Solution:
6 CHAPTER 1
Example 1.11:
Nana and Lily invested in the same stock. Nana received a return of RM2000
on her RM1000 investment. What was Lilys return if she invested RM6000?
Solution:
EXERCISES
1.1 Change each of the following percentage into decimal form.

a) 6% b) 40% c) 85% d ) 9.5%
1 1
e) 12 % f ) 25% g ) 2.56% h) 3 %
2 4
i) 96% j ) 6.5% k ) 7.83% l ) 9%
m) 10.9% n) 17.2% o) 42.69% p) 53.73%
q) 16% r ) 55% s) 8.7% t ) 16%
1.2 Change each of the following decimal number into percent.

a) 0.17 b) 0.93 c) 0.123 d ) 0.367
e) 0.4359 f ) 0.6709 g ) 0.8215 h) 0.9213
i) 0.38 j ) 0.39325 k ) 0.75164 l ) 0.23017
m) 0.962 n) 0.58423 o) 0.10709 p) 0.37599
1.3 Find the ratio and simplify into the lowest term.
a) 10 : 15 : 25 b) 12 : 28 : 18 c) 9 : 15 : 27
d) 49 : 28 : 70 e) 45 : 75 : 105 f) 40 : 56 : 96
1.4 There are 100 black marbles, 120 blue marbles and 160 red marbles in a
box. What is the ratio of the number of marbles in the box?
1.5 Ali and Bakar shared a profit in the ratio of 3 : 2. If the total profit is
RM4500, how much does each of them get?
1.6 Syazwan and Farhan shared the profits of a joint venture in the ratio of
7 : 5. If Syazwan received RM2450, how much did Farhan received?
1.7 The ratio of lecturers to students in a college is 3 : 65. If the total number
of lecturers and students in the college is 1020, find the number of
students.
1.8 The ratio of boys to girls in the mathematics society is 3 : 5. If there are 21
boys in the society, find the number of girls.
1.9 In 2013, the profit made by Radziah Radzi Enterprise was RM1,210,000. The
profit was divided among Radziah, Radzi and Ridhwan at a ratio of 2 : 6 : 3.
Find the profit received by each of them.
8 CHAPTER 1
1.10 A basket of guavas is shared among Fatimah, Marlina and Salmiah at a ratio
of 3 : 5 : 9. If Salmiah gets 18 guavas, how many guavas were there in the
basket?
1.11 A sum of money is divided among Maya, Irfan and Borhan in the ratio of 3 :
5 : 2. If Borhan received is RM450. Calculate the amount received by Irfan.
1.12 Azmi, Azam and Azman shared RM14,400 in the ratio of 4 : x : 9. If Azman
share was RM8100, find:
a) the value of x.
b) the amount received by Azmi and Azam.
1.13 The total profit from sales at three stalls A, B and C were distributed in the
ratio of 3 : 4 : x. If stall A received RM1500 and stall C received RM3500,
find:
a) the value of x.
b) the total profit.
1.14 90 new students registered in Bangi Tuition Centre and the ratio of students
according to their exam; SPM, PMR and UPSR is 7 : x : 2. If a total of 54
students registered for tuition SPM and UPSR, find x.
1.15 Mr Teoh owned 1500 units of shares. He intended to give to their children
Eric, Ah Hou and Mei Lin in the ratio x : 3 : 5. If Me Lin received 500 unit of
shares, find:
a) the value of x.
b) the total shares received by Eric
1.16 The total commission of a company were distributed among three partners:
Ibrahim, Hashim and Aziz in the ratio 3 : 4 : x. If Ibrahim received RM2400
and Aziz received RM1600, find the value of x.
1.17 Pak Su and his wife intends to save RM13,500 into their three children
account Along, Angah and Alang in the ratio 3 : x : 2. If Alang gets RM3000,
find :
a) the value of x.
b) the total amount received by Angah.
1.18 Hasnah has RM28,000 to invest. She wants to invest in three stocks A , B and
C in the ratio 1 : 4 : 2 respectively. Find the amount that should be invested
in each stock.
1.19 Dina, Lina and Liza shared RM4500 in the ratio 3 : x : 8. If Dinas share was
RM900, find x.
1.20 If y x and y 12 when x 4 , find

(a) y in terms of x
(b) y if x 2
(c) x if y 15

(a) y in terms of x
(b) y if x 11
(c) x if y 40

(a) y in terms of x
(b) x if y 10
(c) y if x 10

(a) y in terms of x
(b) x if y 6
(c) y if x 14
1.24 Amni earns RM108 if she works for 9 hours. Find the ringgit earned by Amni if
she worked for 24 hours.
1.25 If Adnan can buy 6 cookies with RM1.50, how much Adnan has to pay for 50
cookies?
1.26 The amount of sale taxes on a new car is direct proportional to purchase
price of the car, if a RM25,000 car pays RM1750 in sales taxes. What is the
purchase price of a new car which has a RM3500 sale taxes?
1.27 A 2850-square-foot house cost RM182,400, then what is the cost of a 3640-
square foot house?
1.28 There are three best friends, Aman, Amen and Bun working at a factory. Bun
earned RM896 after working for 280 hours. Find
(a) the ringgit earned by Amen if he works for 296 hours.
(b) the number of hours if Aman earned RM800.
10 CHAPTER 2
CHAPTER 2
TRADE AND CASH DISCOUNT

explain trade discount terms
calculate trade discount and the net price of goods purchased
explain chain discount
find a single discount that is equivalent to a chain discount
explain cash discount terms
solve problems involving trade and cash discount
LETS SURF THE INTERNET!
Before you learn this chapter, you must watch a

video from YouTube. You can refer to the address
listed below.
url trade discount part 1:
https://www.youtube.com/watch?v=eX2Otpa_xxw
url trade discount part 2:

https://www.youtube.com/watch?v=tM8_QyRDVy
TRADE AND CASH DISCOUNT 11
2.1 TRADE DISCOUNT

The process of trade discount is between retailers and wholesalers.
2.1.1 Definition:
The amount by which a manufacturer reduces the retail price of a product
when it sells to a reseller, rather than to the end customer.
Trade discount is the difference between the list price and the net price.
Amount of trade discount = list price x trade discount rate

TD = L x r%
Trade discount = list price net price
TD = L - NP
Formula for calculating net price:
Net price = list price trade discount

NP = L - TD
NP = L - Lr
NP = L(1 - r)
where
NP - net price
L - list price
r - trade discount rate (%)
Notes:
Net price - The price after deducting the discounts
List price - The basic price of an item as published in a catalog, price list, or
advertisement before any discounts are taken
- The original price of the item that we bought without any
chargers, e.g.; transportation cost, freight charge, insurance,
etc.
Invoice - The list price of goods sold or services provided with price charged.
Example 2.1:
The list price of a leather shoes is RM340. A trade discount of 12% is offered.
a) What is the amount of a trade discount?
Solution:
b) What is the net price?
Solution:
12 CHAPTER 2
Example 2.2:
The net price of XY camera with 20% trade discount is RM880. What is the
list price?
Solution:
Example 2.3:
An invoice of RM1800 including transportation cost of RM120 is offered a
trade discount of 8%. What is the net payment?
Solution:
2.2 CHAIN DISCOUNT

2.2.1 Definition:
A series of trade discounts.
A multiple of discounts which offered on the same item by
manufacturers.
Each discount rate is calculated on the successive net amount.
Formula for calculating the net price for a chain discount:

NP = L (1-r1)(1-r 2)(1-r 3)..(1-r n)
Example 2.4:
A wooden table with a list price of RM900 is offered a chain discount of 10%
and 5%. Calculate the net price.
Solution:
Example 2.5:
A computer with a net price after discount of 8%, 5% and 2% is RM2800. Find
the price before discount.
Solution:
Example 2.6:
The net price of an item listed for RM1500 after deducting trade discounts
of 20%, 15% and x% is RM969. Find x.
Solution:
2.3 SINGLE DISCOUNT EQUIVALENT

2.3.1 Definition:
A single discount which is equivalent to chain discount.
The bigger the single discount rate equivalent, the lesser the given net price.
Formula:
r = 1 - (1-r1)(1-r2)(1-r3)..(1-rn)
Example 2.7:
Find the single discount equivalent of 20%, 10% and 5%.
Solution:
14 CHAPTER 2
Example 2.8:
A manufacturer sells kayaks to dealers at a list price of RM2100 less 40%,
10%, and 5%. Determine the
a) single equivalent rate of discount.
Solution:
b) net price.
Solution:
Example 2.9:
Galaxy Jewellers offer trade discounts of 15% and 12 % on a diamond
necklace while Brilliant Jewellers offer 10%, 9 % and 8% on the same
necklace. Which offers a better discount?
Solution:
2.4 CASH DISCOUNT

2.4.1 Definition:
A reduction in the amount of an invoice that the seller allows the buyer pays
their bills within stipulated period of time.
The discount is given in exchange for paying the invoice earlier than the normal
payment date of the invoice.
The cash discount is also to encourage prompt payment of bills.
For example, given a cash discount terms 8/10, 3/25 and n/40:
This term means 8% of the net price may be deducted if the invoice is paid
within 10 days of the date of the invoice; 3% of the net price may be
deducted if the invoice is paid between 11th and 25th day; and full amount
must be paid by the 40th day. After the 40th day, the bill is overdue.
Example 2.10:
Hakimi received an invoice of RM1350 with cash discount terms of 10/6,
n/30. If he paid the invoice five days after the date of the invoice, what is
the payment amount?
Solution:
Example 2.11:
An invoice dated 9th February 2013 for RM5200 was offered cash discount
terms of 8/10, 5/25, n/40. Find
a) the last date to get 8% cash discount.

Solution:
b) the payment if the invoice is paid on 26th February 2013.

Solution:
16 CHAPTER 2
2.5 TRADE AND CASH DISCOUNT

Those are offered simultaneously to a buyer.
Example 2.12:
An invoice amounting to RM8500 including delivery charge of RM80 and
dated 11th July 2012 offers 12%, 10% trade discount and cash terms of 8/15,
6/30, n/50. If the buyer pays on 20th July 2013, find
a) the total payment made.
Solution:
b) the last date to settle the invoice.
Solution:
c) the single discount equivalent to the trade discount given.
Solution:
Example 2.13:
A retailer received an invoice dated 20th March 2013 for RM3000. The trade
discounts offered was 13% and cash terms 4/10, n/20. If the invoice was
paid on 28th March 2013, find:
a) the trade discount offered.
Solution:
b) the cash discount offered.
Solution:
c) the net payment.
Solution:
18 CHAPTER 2
EXERCISES
2.1 Find the amount of trade discounts and the net prices for the following:
List Price Rate of trade discount

a) RM 250 5%
b) RM 45 20%
c) RM3500 45%
d) RM 400 15%
2.2 An item with a list price of RM125 is offered a trade discount of 7%. What is
the net price?
2.3 The net price of a pair of shoes after a discount of 16% is RM252. What is the
list price?
2.4 A mountain bike listed for RM1500 is sold for RM1200. What rate of discount
was allowed?
2.5 A bill of RM1400 including delivery charge of RM100 is offered a trade

discount of 15%. What is the payment to settle the invoice?
2.6 Find the amount of trade discounts and the net prices for the following:
List Price Rate of trade discount
a) RM7500 10%, 5%
b) RM2100 15%, 10%, 5%
c) RM680 12%, 8%, 5%
d) RM450 8%, 3%
2.7 A home theatre system is listed for RM2130 less 15% and 8%. What is the net
price?
2.8 The net price of a barbeque grill after trade discounts of 12% and 5% is
RM760. Find the list price.
2.9 The list price of a washing machine is RM800. After deducting a trade
discount of 10% and x%, the net price is RM662.40. Find the value of x.
2.10 Firdaus bought the following items from a furniture shop which offers trade
discounts of 15% and 8%.
Items List price per set
Sofa set RM1800
Bedroom set RM2200
Bookshelf RM900
a) Find the net price of each item.

b) Find the total payment if Firdaus bought one sofa set, two bedroom set
and three bookshelves.
2.11 Find the single discount equivalent for the following:

a) 10% and 5%
b) 25%, 15% and 5%
c) 30%, 20% and 10%
2.12 A camera listed for RM599 less 20% and 12%.

a) What is the net price?
b) Find the single discount equivalent
2.13 Kevin paid RM775.20 after a trade discount of 20%, 15% and x%. If the total
discounts were RM424.80, find
a) the list price.
b) the value of x.
2.14 The net price of an item after deducting trade discount of 15% and 5% is
RM2180.25. Find the list price and single trade discount equivalent.
2.15 Dania paid RM4370 after a trade discount of 8% and x%. If the amount of
total discount were RM630, find
a) the list price.
b) the value of x.
2.16 FS Company offers a series discount of 20% and 5% on a mountain bike while
RS Company offers 15%, 8% and 2% on the same type of mountain bike.
Which company offers a better discount on its merchandise?
2.17 An invoice dated 21st January 2014 for RM2890 offered cash discount terms
of 5/10, 3/20, n/30. If the invoice was paid on 29th January 2014, find
a) the net payment to be paid.
b) the last date to settle the payment.
2.18 XYZ Sports bought some products worth RM15840 including handling charged
RM220 dated 10th July 2013 with a trade discount of 18% and cash discount
terms of 10/15, 5/20 and n/40. Determine the total amount due if the
invoice was paid on 28th July 2013.
2.19 A retailer received an invoice of RM5200 dated 12th November 2012 with a
trade discount of 12% and cash discount terms of 8/15, 3/25, n/60. If the
invoice was settled on 22nd November 2012, find
a) trade discount offered.
b) the cash discount offered.
c) the net payment.
20 CHAPTER 2
2.20
Merlin Enterprise
Jalan USJ 6,
47600 Subang Jaya, Selangor.
Tel/Fax: 03-56306177
Red Sdn. Bhd.
Taman Permai,
34600 Taiping, Perak. 3rd March 2014
Items:
1. Five units of office tables RM 1400
2. Five units of office chairs RM 1050
3. Four units cabinets RM 600
Transportation cost : RM150

Trade discounts : 15%, 10%
Cash discounts : 8/10, 5/20, n/40
Red Sdn. Bhd. received an invoice as shown above. Find
a) the last date to receive 5% cash discounts.

b) the payment made if the invoice was settled on 13th March 2014.
MARKUP & MARKDOW 21
CHAPTER 3
MARKUP AND MARKDOWN

explain retail price, cost price, mark-up and markdown
calculate markup / gross profit, retail price, cash price ,
operating expenses , net profit / loss, breakeven price. (based
on cost price / retail price)
calculate markdown , maximum markdown and new selling
price
calculate markup percent, markdown percent and maximum
markdown percent.
Before you learn this chapter, you must

watch the video from YouTube. You can
refer to the address listed below.
url markup markdown:
https://www.youtube.com/watch?v=
a1ewWlUgsY
22 CHAPTER 3
3.1 INTRODUCTION
There are many retail businesses can be seen anywhere. However, to sustain
the business is not an easy matter. Retailer must have the understanding on
how to determine the price of their goods. For sure the retailer wishes to
obtain profit and does not want to face any loss. Therefore, a proper pricing
may avoid heavy loss from happen. It is also may cause the retailer gain
huge profit rather than just covering all the costs. Sometimes, the retailer
has to markdown the price in order to attract more customers and to clear
stocks.
3.2 MARKUP
Retailer bought some goods and paid at one price.The amount paid by the
retailer is called the cost price of the goods. Those goods purchased will
then be sold at a higher price than the cost price namely selling price or
retail price. The difference between retail price and cost price is called
markup or gross profit. Markup is important to cover business expenses and
to generate profit.
RCM
where
R - retail price or selling price
C - cost price
M - markup or gross profit.
Example 3.1:
Using the equation above, find:
a) the selling price if the cost price is RM24 and the markup is RM13.
Solution:
b) the gross profit if the retail price is RM425.50 and the cost price is
RM87.70.
Solution:
MARKUP & MARKDOW 23
c) the cost price if the selling price is RM2340 and the gross profit is
RM1892.
Solution:
3.2.1 Markup Percent

Markup is usually expressed in percentage form either based on cost price or
retail price.
A) Markup percent based on cost price
M
%MC 100%
C
B) Markup percent based on retail price
M
%MR 100%
R
Example 3.2:
Given that the retail price of an item is RM75, the cost price is RM60 and the
markup is RM15. Find the markup rate based on:
a) cost price.
Solution:
b) selling price.
Solution:
24 CHAPTER 3
Example 3.3:
Cost price of a notebook is RM2520. If the notebook was sold at 35% markup
based on cost price, find
a) the markup.
Solution:
b) the selling price.
Solution:
Example 3.4:
Retail price of a netbook is RM2520. If the netbook was sold at 35% markup
based on selling price, find
a) the markup.
Solution:
b) the cost price.
Solution:
MARKUP & MARKDOW 25
Example 3.5:
A retailer sold a TV cabinet at RM14,280. He set to get a gross profit of 40%
on cost price. Determine the cost price.
Solution:
Example 3.6:
A retailer bought a kitchen cabinet at RM14,280. He set to get a gross profit
of 40% on retail price. Determine the selling price.
Solution:
3.3 MARKDOWN
Markdown is a decrease in the selling price.A retailer may reduce its
original selling price due to such reasons:
to clear old or damaged or obsolete stocks
to increase sales by bulk purchases
to compete with other competitors
After the original selling price being reduced, the retailer sells its goods at a
new selling price which is lower than the original selling price.The
difference between the new selling price and the original selling price is
called markdown.
MD OP NP
where
OP - original retail or selling price
NP - new retail or selling price
MD - markdown
26 CHAPTER 3
Example 3.7:
a) the markdown if the original retail price is RM482 and the new retail
price is RM399.
Solution:
b) the original selling price if the new retail price is RM97.20 and the
markdown is RM5.30.
Solution:
c) the new selling price if the markdown is RM1512.95 and the original
retail price is RM4971.35.
Solution:
3.3.1 Markdown Percent

Markdown percent is always based on the original selling price that is:
MD
%MD 100%
OP
where
MD - markdown
MARKUP & MARKDOW 27
Example 3.8:
Given that the original retail price of an item is RM846. The item was given
a markdown of RM44. Find the percentage of markdown.
Solution:
Example 3.9:
A tablet of RM2499 was being markdown to RM1999.20. Find:
a) the markdown.
Solution:
b) the markdown rate.
Solution:
Sometimes, it is quite difficult to determine the new selling price or the

original selling price using these two equations:
MD
MD OP NP and %MD 100%
OP
Combining both equations will help to solve this problem. Thus, it generates
another equation that is:
NP OP(1 %MD)
where
NP - new retail or selling price
MD - markdown
28 CHAPTER 3
Example 3.10:
a) the new selling price if the original selling price is RM4321 and the
markdown percent is 24%.
Solution:
b) the original retail price if the markdown rate is 15% and the new
retail price is RM858.50.
Solution:
3.4 PROFIT AND LOSS

In doing a business, there are several expenses namely operating expenses
need to be covered such as rent, utilities, salaries, transportation, etc. If
the markup or gross profit is greater than the operating expenses then the
business gain net profit.Otherwise, the business will suffer net loss if the
markup is less than the operating expenses.
M OE NP
where
M - markup or gross profit
OE - operating expenses
NP - net profit
If the business just can cover the cost price (C) and the operating expenses
(OE), the business will not gain any profit nor suffer any loss.This selling
price is called breakeven price (BP).
BP C OE
where
BP - breakeven price
C cost price
MARKUP & MARKDOW 29
Combining these two equations: R C M and M OE NP

Will generates another equation that is:
R C OE NP
where
C cost price
NP - net profit
Sometimes, retailer may want to reduce its selling price. The maximum
deduction that the retailer may allow without incurring any loss is:
MaxMD R BP
where
MaxMD maximum markdown or maximum
deduction
BP - breakeven price
In the percentage form, the equation is:

MaxMD
%MaxMD 100%
R
where
MaxMD maximum markdown or maximum
deduction
Example 3.11:
A set of sofa was purchased at RM7500. The operating expenses were 10% on
cost and the net profit was 25% on cost. Find:
a) the selling price.
Solution:
b) the gross profit.
Solution:
30 CHAPTER 3
c) the breakeven price.
Solution:
d) the maximum markdown that could be offered without incurring any

loss.
Solution:
e) the maximum markdown rate that could be offered without incurring

any loss.
Solution:
f) the net profit or loss if the retail price was RM8000.
Solution:
MARKUP & MARKDOW 31
EXERCISES
3.1 Find the retail price and the markup for the following questions below.
Cost Price Markup
a) RM 64 25% on cost
b) RM 420 12% on cost
c) RM2039 6% on cost
d) RM 64 25% on retail
e) RM 420 12% on retail
f) RM2039 6% on retail
3.2 Find the cost price and the markup for the following questions below.
Retail Price Markup
a) RM 64 25% on cost
b) RM 420 12% on cost
c) RM2039 6% on cost
d) RM 64 25% on retail
e) RM 420 12% on retail
f) RM2039 6% on retail
3.3 Given that cost price and gross profit of a dining table are RM436.20 and
RM120. Determine:
a) the markup rate based on retail price.
b) the new selling price if the markup is 30.5% on cost price.
3.4 Find the new selling price if the markdown rate for a blender is 14% and the
original selling price is RM69.90.
3.5 A storage box was sold at RM43.49 after 20% discount. Determine the retail
price before discount.
3.6 The gross profit of selling a mattress is RM83.70 and the markup percent is
18% of the cost price. Calculate:
a) the cost price.
b) the retail price.
c) the markdown percent if the mattress was sold at RM500.
3.7 An umbrella was bought at RM14.50. The retailer wishes to obtain RM 5.51
as a gross profit. Calculate:
a) the percentage of markup based on cost price.
c) the new selling price if the umbrella was sold at 24% markdown.
3.8 Am bought 30 ABBA files that cost RM162. He sold each file at a markup of
20% based on retail price.
a) How much is the selling price for each file?
b) Find the gross profit.
c) What is the markdown rate if Am reduced the selling price to RM6.05
each?
32 CHAPTER 3
3.9 5 units of school bags were sold at discounted price of RM151.80. If the
discount rate was 12%, find:
a) the old retail price of a school bag.
b) the total markup if the total cost was RM120.
c) themarkup rate based on cost price.
3.10 8 packs of Oat Cookies were sold at RM30.40. The gross profit was 25% on
cost. Determine:
a) the cost price per pack.
b) the total gross profit.
c) the amount of markdown if the price is reduced to RM3.49 per pack.
3.11 Find the retail price or the cost price for the following questions below.
Retail Price Cost Price Operating Expenses Net Profit
a) ? RM 75.10 5% on cost 10% on cost
b) ? RM 316 12% on cost 8% on retail
c) ? RM1090 6% on retail 4% on retail
d) ? RM 453.80 20% on retail 15% on cost
e) RM 99.90 ? 5% on cost 10% on cost
f) RM 572 ? 12% on cost 8% on retail
g) RM 8005 ? 6% on retail 4% on retail
h) RM 610.30 ? 20% on retail 15% on cost
3.12 A printer was sold at RM550. The operating expenses were 14% of the cost
price and the net profit was 22% on retail price. Calculate:
a) the cost price.
b) the breakeven price.
c) the markdown rate if the printer was sold at RM490.
d) the net profit or loss if the printer was sold at RM425.
3.13 Amna bought 12 packets of AsamBoi at RM12.60 per packet. She then sold
the AsamBoi at a markup 55% based on cost price.
a) Find the selling price per packet of the AsamBoi.
b) Assuming the operating expenses are 18% based on the retail price, find
the total net profit.
3.14 A company bought 500kg of cauliflowers for RM1050. The net profit was 30%
on the cost price and the operating expenses were 16% based on the selling
price. For each kilogram of cauliflowers, find:
a) the cost price.
c) the gross profit.
d) the breakeven price.
e) the maximum markdown that can be given without incurring any loss.
f) the net profit or loss if the selling price is RM2.80 per kg.
MARKUP & MARKDOW 33
3.15 A gas stove was bought for RM195. It was sold at RM329 with a net profit of
RM84. Find:
a) the operating expenses.
b) the breakeven price.
c) the net profit or loss if the price was reduced to RM244.
3.16 Six units of hair dryer were sold at 40% markup based on selling price. The
net profit of the hair dryer is 25% based on selling price. The total operating
expenses were RM291.60.
a) Calculate the retail price and the cost price for each hair dryer.
b) Find the breakeven price of the hair dryer.
c) Determine the new selling price if a hair dryer is given 20% discount.
Was there a profit or loss?
3.17 Man sold two units of mini bar at RM940. He will get 24% net profit based on
selling price. The operating expenses were 5% on selling price. Determine:
a) the cost price of each mini bar.
b) the breakeven price of a mini bar.
c) the total gross profit.
d) the markdown rate if a mini bar was sold at RM 370.
e) the profit or loss if a mini bar was sold at RM 370.
34 CHAPTER 4
CHAPTER 4
LINEAR FUNCTION AND GRAPHS

recall Cartesian coordinate system and plotting points.
calculate slope from two points or from equation.
calculate x-intercept and y-intercept.
convert from ax + by +c =0 to y = mx +c and vice versa.
find equation of line that is given slope and y-intercept , given slope
and one point and given two points.
find the intersection of two lines.
sketch one line or two lines with intersection points.
able to write equation of demand or supply when statements are
given.
solve for equilibrium price and quantity using simultaneous equation
only.
sketch demand and supply equation.
4.1 CARTESIAN COORDINATE SYSTEM

A similar representation for points in a plane (a two-dimensional space) is
realized through the Cartesian (rectangular) coordinate system, which is
constructed as follows: Take two perpendicular lines, one of which is usually
chosen to be horizontal. These lines intersect at a point 0, called the origin
(Figure 1). The horizontal line is called the x-axis, and the vertical line is
called the y-axis.
A number scale is set up along the x-axis, with the positive numbers
lying to the right of the origin and the negative numbers lying to the left of
it. Similarly a number scale is set up along the y-axis, with the positive
numbers lying above the origin and the negative numbers lying below it.
y
Quadrant II Quadrant I
(-,+) (+,+)
Origin
Quadrant III Quadrant IV

(-,-) (+,-)
Figure 4-1. The Cartesian Coordinate System

LINEAR FUNCTION AND GRAPH 35
4.2 LINEAR SLOPE, INTERCEPTS

4.2.1 Slope of a Line
Let ( x1 , y1 ) and ( x 2 , y 2 ) be two different points on a non-vertical line.
The slope of the line is
y y1
m 2
x 2 x1
A vertical line does not have a slope, because any two points on it must
have x1 x2 (see Figure 4-2(i)), which gives a denominator of zero. For
horizontal line, any two points must have y1 y 2 (see Figure 4-2(ii)). This
gives a numerator of zero and hence, the slope of the line is zero.
y y
( x1 , y1 )
( x2 , y 2 )
y1 y 2 ( x2 , y 2 )
( x1 , y1 )
x x
x1 x2
(i) No Slope (ii) Slope of zero
Figure 4-2. Vertical and Horizontal Lines
In summary, we can characterize the orientation of a line by its slope:

Zero slope : horizontal line
Undefined slope : vertical line
Positive slope : line rises from left to right
Negative slope : line falls from left to right
4.2.2 Forms of Lines

If we know a point on a line and the slope of the line, we can find an
equation whose graph is that line. Suppose that line L has slope m and
passes through the point ( x1, y1 ) . If ( x1, y1 ) is any other point on line L (see
Figure 4-3), we can find an algebraic relationship between x and y. Using
the slope formula on the points ( x1, y1 ) and ( x , y) gives
y y1
m
x x1
y y1 m( x x1 )
y y1 m( x x1 ) is a point-slope form of an equation of the line through
( x1 , y1 ) with slope m
36 CHAPTER 4
( x , y)
Slope = m
( x1 , y1 )
x
Figure 4-3. Line Through ( x1 , y1 ) With Slope m
Example 4.1:
Find an equation of the line that has slope 2 and passes through (1, -3).
Solution:
Example 4.2:
Find an equation of the line passing through (-3, 8) and (4, -2).
Solution:
Recall that a point (0,c) where a graph intersects the y-axis is called
a y-intercept (Figure 4-4). If the slope m and y-intercept, c of a line are
known, an equation for the line is [by using a point-slope form with ( x1 , y1 ) =
(0, c)].
y c m( x 0)
Solving for y gives y mx c , called the slope-intercept form of an

equation of the line:
y mx c
Is the slope-intercept form of an equation of the line with slope m and y-

intercept, c.
Example 4.3:
Find an equation of the line with slope and y-intercept -4.
Solution:
Example 4.4:
Find the slope and y-intercept of the line with equation y 5(3 2 x)
Solution:
If a vertical line passes through (a,b) (see Figure 4-4(i)), then any
other point (x,y) lies on the line if and only if x = a. Similarly, an equation
of the horizontal line passing through (a, b) is y = b. (see Figure 4-4(ii)).
Here the x-coordinate can have any value.
38 CHAPTER 4
y y
( a, b)
yb ( x, y)
xa
b ( a, b)
( x, y)
x
x
a
Figure 4-4(i). Vertical Line Through (a,b) Figure 4-4(ii). Horizontal Line Through (a,b)
From our discussions, we can show that every straight line is the
graph of an equation of the form Ax By C 0 , where A, B, and C are
constants and A and B are not both x = zero. We call this a general linear
equation in the variables x and y, and x and y are said to be linearly
related. For example, a general linear equation for y 7 x 2 is
(-7)x + (1)y + (2) = 0 . Conversely, the graph of a general linear equation is a
straight line. Table 1 below gives the various forms of equations of straight
lines.
Point-slope form : y y1 m( x x1 )
Slope-intercept form : y mx c
General linear form : Ax By C 0
Vertical line : xa
Horizontal line : yb
Table 1. Forms of equations of straight lines
Example 4.5:
a) Find a general linear form of the line whose slope-intercept form is
2
y x4
3
Solution:
b) Find the slope intercept form of the line having a general linear form
3x 4 y 2 0
Solution:
4.2.3 Intercepts
The graphical concept of x- and y-intercepts is pretty simple. The x-
intercepts are where the graph crosses the x-axis, and the y-intercepts are
where the graph crosses the y-axis. The problems start when we try to deal
with intercepts algebraically.
To clarify the algebraic part, think again about axes. When you were
first introduced to the Cartesian plane, you were shown the regular number
line from elementary school (the x-axis), and then shown how you could
draw a perpendicular number line (the y-axis) through the zero point on the
first number line. So the y-axis is really the line x=0. In the same way, the
x-axis is really the line y=0.
Then, algebraically,
an x-intercept is a point on the graph where y is zero, and
a y-intercept is a point on the graph where x is a zero.
More specifically,
an x-intercept is a point in the equation where the y-value is zero, and
a y-intercept is a point in the equation where the x-value is zero.
y
y-intercept, x = 0
x-intercept, y = 0
x
40 CHAPTER 4
Definition
The x-intercept of a line is the point at which the line crosses the x-
axis. (i.e. where the y value equals 0)
x-intercepts = (x, 0)
The y-intercept of a line is the point at which the line crosses the y-
axis. (i.e. where the x value equals 0)
y-intercept = (0, y)
Example 4.6:
Find the x and y intercepts of the equation 3x 4 y 12
Solution:
4.3 INTERSECTION OF TWO LINES ALGEBRAICALLY

1. To find the point of intersection of two straight lines means to find the
point where the two lines meet. This means, the two lines must not be
parallel.
2. The point of intersection of two straight lines can be determined by
a) Drawing the two lines on the same axes, extending the lines if
necessary/graphical method.
b) Algebra method-substitution or elimination.
4.3.1 Using Substitution Method
Example 4.7:
a) Find the point of intersection of lines y 2 x 1 and x y 7 by using
substitution method.
Solution:
b) Find the point of intersection of lines y 2 x 9 and x 3 y 8 by

using substitution method.
Solution:
42 CHAPTER 4
4.3.2 Using Elimination Method
Example 4.8:
Find the point of intersection of lines y 2 x 9 and x 3 y 8 by using
elimination method.
Solution:
4.4 SKECTH GRAPH OF STRAIGHT LINES

To sketch the graph when given an equation in the form y mx c , follow
the steps below.
1. Pick two suitable values of x and calculate the corresponding values of y.
2. Plot the two points on the Cartesian plane.
3. Joint the two points plotted by drawing a straight line through them.
Example 4.9:
Sketch a straight line y 2 x 3
Solution:
Example 4.10:
Find the point of intersection of lines y 2 x 1 and x y 7 by using
graphical method.
Solution:
4.5 APPLICATION OF STRAIGHT LINES DEMAND AND SUPPLY, EQUILIBRIUM

POINT.
4.5.1 Demand and Supply equation
For each price level of a product, there is corresponding quantity of that
product which consumers will demand (that is, purchase) during some time
period. Usually, the higher the price, the smaller is the quantity
demanded; as the price falls, the quantity demanded increases. If the
price per unit of the product is given by p and the corresponding quantity
(in units) is given by q, then an equation relating p and q is called a
demand equation. Its graph is called a demand curve.
Figure 4-5(i) shows a demand curve. In keeping with the practice of

most economists, the horizontal axis is the q-axis and vertical axis is the p-
axis. We shall assume that the price per unit is given in dollars and the
period is one week. Thus the point (a,b) in Figure 4-5(i) indicates that, at a
price of b dollars per unit, consumers will demand a units per week. Since
negative prices or quantities are not meaningful, both a and b must be
non-negative. For most products, an increase in the quantity demanded
correseponds to a decrease in price. Thus, a demand curve typically falls
from left to right, as in Figure 4-5(i).
44 CHAPTER 4
p p
Demand curve Supply curve
(a,b) (c,d)
q q
(i) (ii)
Figure 4-5. Demand And Supply Curves
In response to various prices, there is a corresponding quantity of

product that producers are willing to supply to the market during some time
period. Usually, the higher the price per unit, the larger is the quantity that
producers are willing to supply; as the price falls, so will the quantity
supplied. If p denotes the price per unit and q denotes the corresponding
quantity, then an equation relating p and q is called supply equation, and
its graph is called a supply curve.
Figure 4-5(ii) shows a supply curve. If p is dollars and the period is

one week, then the point (c,d) indicates that, at a price of d dollars each,
producers will supply c units per week. As before, c and d are non-negative.
A supply curve usually rises from left to right, as in Figure 4-5(ii). This
indicates that a producer will supply more of a product at higher prices.
We shall now focus on demand and supply curves that are straight
lines (Figure 4-6). They are called linear demand and linear supply curves.
Such curves have equations in which p and q are linearly related. Because a
demand curve typically falls from left to right, a linear demand curve has a
negative slope. (See Figure 4-6 (i)). However, the slope of a linear supply
curve is positive, because the curve rises from left to right. (see Figure 4-6
(ii)).
p p
Linear demand curve Linear supply slope
Negative slope
Positive slope
q q
(i) (ii)
Figure 4-6. Linear Demand And Supply Curves

Example 4.11: Finding a Demand Equation

Suppose the demand per week for a product is 100 units when the price is
RM58 per unit and 200 units at RM51 each. Determine the demand equation,
assuming that it is linear.
Solution:
4.5.2 Equilibrium Point

When the demand and supply curves of a product are represented on the
same coordinate plane, the point (m,n) where the curves intersect is called
the point of equilibrium. (See Figure 4-7), the price n, called the
equilibrium price, is the price at which consumers will purchase the same
quantity of a product that producers wish to sell at that price. In short, n is
the price at which stability in the producer-consumer relationship occurs.
The quantity m is called the equilibrium quantity.
p
Supply curve
n (m,n) equilibrium point
Demand curve
m q
Figure 4-7. Equilibrium

46 CHAPTER 4
To determine precisely the equilibrium point, we solve the system formed

by the supply and demand equations.
1
p q 12 (demand equation )
180

p 1 q 8 (sup ply equation )

300
1
By substituting q 8 for p in the demand equation, we get
300
1 1
q8 q 12
300 800
1 1
q 4
300 180
q 450 (equilibriu m quantity )
Thus,
1
p (450) 8
300
9.50 (equilibriu m price)
and the equilibrium point is (450, 9.50). Therefore, at the price of RM9.50
per unit, manufacturers will produce exactly the quantity (450) of units per
week that consumers will purchase at that price. See Figure 4-8.
1
p q 8
300
12
Equilibrium
point (450, 9.50) Equilibrium point
9.50
8 1
p q 12
800
450
Equilibrium quantity
Figure 4-8. Equilibrium

EXERCISES
4.1 In problem 1-6, find the slope of the straight line that passes through the
given points.
a) (4, 1) (7, 10) d) (2, 4) (3, -4)
b) (5, -2) (4, 2) e) (7, 3) (5, -8)
c) (-3, 11) (2, 1) f) (1, -6) (1,0)
4.2 In problem 4.2(a-f), find a general linear equation ( Ax By C 0 ) of the

straight line that has the indicated properties.
a) Passes through (2, 8) and has slope 6.
b) Passes through origin and has slope -5.
c) Passes through (-2, 5) and slope -1/4
d) Passes through (-6, 1) and (1,4).
e) Passes through (0, 0) and (2, 3).
f) Passes through (7, 1) and (6, 2).
4.3 In problems 4.3(a-d), find a general linear form and the slope-intercept form
of the given equation.
a) 2x 5 3 y c) 3x 2 y 6
b) 4x 9 y 5 0 d) y 2x 7
4.4 In problems 4.4(a-f), solve each system by using substitution and elimination
method.
x y 4 2 x 3 y 13
a) d)
y 3x y 2x 7
x 3y 5 x 2y 5
b) e)
4 x 5 y 13 2 x y 15
2 x y 5 2 x 3 y 11
c) f)
x 5 y 14 x 4y 0
SUPPLY AND DEMAND EQUATION:
4.5 Suppose consumers will demand 40 units of a product when the price is RM12
per unit and 25 units when the price is RM18 each. Find the demand equation
assuming that it is linear. Find the price per unit when 30 units are
demanded.
4.6 The demand per week for best-selling book is 26,000 books when the price is
RM16 each and 10,000 books when the price RM24. Find the demand eqaution
for the book, assuming that it is linear.
4.7 A refrigerator manufacturer will produce 300 units when the price is RM840,
and 220 units when the price is RM640. Assuming that the price p and the
quantity q produced are linearly related and find the supply equation.
48 CHAPTER 4
4.8 In problems 4.8(a - c), find the equilibrium price, Pe and quantity Qe for each
of the following markets, using equations
a) Supply : p 5q 10 ; Demand : p 3q 50
2 1
b) Supply : p q 150 ; Demand : p q 450
3 3
c) Supply : p 25q 185 ; Demand : p 32q 1240
LINEAR PROGRAMMING 49
CHAPTER 5
LINEAR PROGRAMMING
Uponsuccessful completion of the chapter, you should be able to:

sketch the line and shade the region.
understand the concept of linear programming
know how to express linear programming problem.
understand the meaning of the objective function and constrains.
know how to formulate and solve maximizing and minimizing
problems.
know how to solve a problem using graphical method.
know how to shade the correct region.
5.1 INTRODUCTION
Linear programming is a way of solving some problem of constrained
optimisation.
Constrained optimisation has:
An aim of optimising either maximising or minimising.
A set of constraints that limit the possible solutions.
5.2 LINEAR INEQUALITIES IN TWO VARIABLES: GRAPH

A linear inequality is a linear equation with the equal symbol, = ;
replaced with any one of (less than or equal to) or (greater than
or equal to)
The solution set to an inequality in two variables is best represented by its
graph.
50 CHAPTER 5
Example 5.1:
Sketch the following inequalities:
a) b)
Solution: Solution:
c) d)
Solution: Solution:
e) f)
Solution: Solution:
g)
Solution:
h)
Solution:
i)
Solution:
j)
Solution:
52 CHAPTER 5
5.3 LINEAR PROGRAMMING: MAXIMIZE /MINIMIZE

Properties of linear programming.
1. One objective function.
2. One or more constraints.
3. Alternative courses of action.
4. Objective function and constraints are linear.
5. Nonnegative variables
Example 5.2:
Graph the following and find the feasible region.
a) i) Objective Function:
Minimize,
ii) Constraints:
iii) Construct a graph and feasible region

b) Maximize,
Solution:
54 CHAPTER 5
c) Maximize,
Solution:
d) Minimize,
Solution:
56 CHAPTER 5
PROBLEM SOLVING:
Example 5.3:
During Chinese New Year, Rashid Workshop has a lot of cars to be repaired.
There are at least 5 Preve , 12 Saga and 18 MyVi cars. The workshop
employs two part time mechanics for a certain weeks. The cost per week
hiring the two mechanics, Mechanics A and Mechanics B are RM250 and
RM300 respectively. The number of cars each mechanics can repair and the
cost per week are given in the following Table:
Type Mechanics A Mechanics B
Preve 1 1
Saga 2 3
MyVi 6 3
By using the linear programming model,

a) Write the objective function, Z
b) Write the problem constraints and the non-negative constraints,
c) Graph the feasible region
d) What is the minimum cost and how many weeks should each of the
mechanics need to employed
Solution:
58 CHAPTER 5
Example 5.4:
A company manufacturers two type of patio furniture: rockers and chaise
lounges. Each unit of the furniture requires wood, plastic and aluminium as
shown in the table below.
Type Rockers Chaise Lounges
Wood 2 units 1 unit
Plastic 2 units 3 units
Aluminium 1 unit 1 unit
The company has 80 units of wood, 120 units of plastics and 45 units of
aluminium available. Each rockers and chaise lounges sells at RM280 and
RM340. By using linear programming, graph the feasible region and
determine the production order so that total revenue will be maximized.
Solution:
60 CHAPTER 5
EXERCISES
5.1 Sketch the following inequalities:
a) f) k)
b) g) l)
c) h) m)
d) i) n)
e) j) o)
5.2 Graph the following and find the feasible region:
a) Minimize: b) Maximize:
Constraints: Constraints:
b) Maximize: d) Minimize:
Constraints: Constraints:
5.3 Problem Solving.
a) Teletubbies (x) Hello Kitty (y) Available Employee

Machine A 4 hours 2 hour 140 hours
Machine B 6 hours 8 hours 240 hours
Finishing 2 hour 6 hours 150 hours
Profit RM8 RM12
A toy manufacturer produces two new soft toys; Teletubbies and Hello
Kitty. Each toy must be processed in Machine A, Machine B and
Finishing. The hours required are given in the table above. By using the
linear programming model,
i. Write the objective function, Z.
ii. Write the problem constraints and the non-negative constraints.
iii. Graph the feasible region.
iv. Find how many of each toy should be made per week in order to
maximize the profit.
a) A soft drink company has two bottling plants located in Sabah and
Kedah. Each plant produces three different kind of soft drinks; A, B and
C. the number of bottles produce per day is as shown in the table 1
below:
Soft Drinks Plant Location Demand
Sabah Kedah
A 480 bottles 160 bottles 3840 bottles
B 200 bottles 200 bottles 3200 bottles
C 300 bottles 720 bottles 7200 bottles
Operating Cost RM850 RM650
A market survey indicates that during the month of May there will be
minimum demands for 3840 bottles of soft drink A, 3200 bottles of soft
drink B and 7200 bottles of soft drinks C. The operating cost per day of
running the plants in Sabah and Kedah are respectively RM850 and
RM650. Using the linear programming model,
iv. How many days should the company run each plant in the month of
May so that the production cost is minimized?
b) A company produces two types of steel, Type A and Type B. Each type
and hours available for melting, cutting and rolling as shown in the table
below.
Type A (x) Type B (y) Hours available
Melting 4 6 96
Cutting 8 24 336
Rolling 16 12 288
Profit RM150 RM200
By using the information given and linear programming model:

iv. How many types should the company produces so that the production
profit is maximized?
62 CHAPTER 5
c) An appliance repair shop has 10 washing machine, 36 DVD Player and 24

microwave to be repaired. The stored employs two part-time repairmen.
The number of appliance each repairman can repair and the salary per
week is as follow:
Repairman 1 Repairman 2
Washing Machine 2 2
DVD Player 6 12
Microwave 6 4
Salary RM280 RM210
Let X= number of weeks for repairman 1

Let y= number of weeks for repairman 2

iv. To minimize the cost, how many weeks should each of the two
repairman be employed and the cost.
d) Golden Hawk Company manufacturers two types of dining table,

rectangle and oval shapes. The company wants to maximize its profit
when the tables are sold. The production requirements and the
department capacities are as in table below:
Department Production Requirements by Departmental
Product (Hours) Capacity (Total
Rectangle (x) Oval (y) Hours)
Assembling 6 10 450
Painting 8 4 360
Finishing 4 4 220
Profits RM300 RM400
By using the linear programming model,

i. Write the objective function.
iv. Determine the maximum profit.
e) Puan Ainun has a stall. She sells variety of kuih-muih. Her customers very
like Vanilla Donut and Strawberry Donut. These donuts go through three
main processes; preparing, frying and toping. The table below show the
time spends on making the two donuts.
Vanilla Donut (x) Strawberry Donut (y) Time available
Preparing 8 minutes 4 minutes 80 minutes
Frying 5 minutes 5 minutes 60 minutes
Toping 6 minutes 9 minutes 90 minutes
Profit RM1.20 RM1.50
Using the linear programming:

iv. Determine the maximum profit.
f) A farmer wants to customize his fertilizer for his current crop. He can
buy plant food mix A and plant food mix B. the number of each cubic
yard contains as below:
Food Mix A (kg) Food Mix B (kg)
Potassium 20 10
Nitrogen 30 30
Corn gluten 5 10
He requires a minimum of 460kg of potassium, 960 kg of Nitrogen, and

220 kg of Corn gluten. The cost of food mix A RM50 per cubic yard and
food mix B RM65 per cubic yard.
Let x= no. of cubic yards of plants food mix A
Let y=no. of cubic yards of plants food mix B

iv. How many cubic yards of each food should the farmer blend to meet
the minimum chemical requirements at a minimal cost?
64 CHAPTER 5
g) Rhino Company manufacturers two products of toy for children named

Kitty and Stich. Each toy must be processed in each of three
department: machinery, assembly and finishing. The hours needed to
produce one unit of product per department and the maximum possible
hours per department are as follows
Department Kitty (x) Stich (y) Maximum capacity of Hours
Machinery 4 2 840
Assembly 4 4 1000
Finishing 4 6 1200
Each unit of Kitty gives a profit RM 11, while each unit of Stich gives
profit RM 10. How many units Kitty and Stich should be produced in order
to get the maximum profit?
iv. How many units Kitty and Stich should be produced in order to get
the maximum profit?
SIMPLE INTEREST 65
CHAPTER 6
SIMPLE INTEREST
Uponsuccessful completion of the chapter, you should be able to:

find the value of time(t) in year using exact time only.
findthe beginning or ending date when the term is given.
explain the concept of simple interest.
Use the simple interest formula to calculate interest, interest
rate, time and date with data provided.
Use the simple amount formula to calculate the present and
future values of some investments or loan.
Before you learn this chapter, you must watch

the video from YouTube. You can refer to the
address listed below.
url simple interest introduction:
https://www.youtube.com/watch?v=m
rYGhMKeOYs
url simple amount part 1-2:
https://www.youtube.com/watch?v=o
7gCbyAS3Ho
url simple amount part 2-2:
https://www.youtube.com/watch?v=y
_GpBvS2Rb0
66 CHAPTER 6
6.1 DEFINITION
Interest is defined as the cost of borrowing money or money earned
when a loan or credit is obtained.
For example, you borrowed RM2000 from a Bank for 2 years. After 2
years you paid back RM2100. The additional amount of RM100 is the interest
you need to pay. So, when you borrow money, you have to repay the loan
with a little extra.
Interest is defined as the money earned when money is invested.
For example, you deposited RM500 in a saving account. After 2 years you
found that in your account is RM570. The additional amount RM70 is the
interest you earned when you invested RM500. So, you can take your original
deposit out along with your interest earnings.
6.2 SIMPLE INTEREST (Formula (I))

Simple Interest (I) is the interest calculated on the original principal for the
entire period it is borrowed or invested. The formula for simple interest is
given as follows.
I = Prt
where
I - Simple interest (RM)
P - amount borrowed/Present Value/Principal
(RM)
r - interest rate (%)
t - term in years/interest period
The Principal/Present Value (P) is the value that is invested or amount of

loan at the beginning of the investment period.
6.2.1 Interest period ( t )

Duration of the investment or loan in years
1 year is equivalent to 365 days

52 weeks
12 months
Example 6.1:
Find the interest period (t) for the following duration of investment:
a) for 3 years.
Solution:
SIMPLE INTEREST 67
b) for 2 year 3 months.
Solution:
c) for 18 months.
Solution:
d) for 130 weeks.
Solution:
e) for 520 days.
Solution:
f) from 2nd Jun 2014 until 26th Jun 2014.
Solution:
g) from 16 March 2014 until 1 July 2014.
Solution:
h) from 28 September 2014 until 11 November 2014.
Solution:
68 CHAPTER 6
Example 6.2:
RM3500 was invested for 2 years in a bank that pays 7.5% simple interest per
annum. Find the simple interest earned.
Solution:
Example 6.3:
Azmi gets a student loan from the MARA to pay for her educational
expenses. Find the interest on the loan if Azmi borrowed RM2000 at 8%
simple interest rate for 6months.
Solution:
Example 6.4:
Rahayu deposited RM2200 into a savings account that gives r% simple
interest. The interest earned after 50 days was RM15.07. Calculate the
interest rate given.
Solution:
Example 6.5:
Zaharah deposited RM P into a bank that offered 5.3% simple interest. The
interest earned after 5years is RM500. Find the value of P.
Solution:
SIMPLE INTEREST 69
Example 6.6:
Ros Shahadah deposited RM2500 into a bank that offered 6% simple interest.
After t years the interest amount is RM300, find the value of t.
Solution:
6.3 SIMPLE AMOUNT (Formula(S))

The simple amount (S) is the sum of the original principal and the interest
earned.
1. S = P + I
2. S = P ( 1 + rt )
Example 6.7:
Puan Hamidah deposited RM3000 into a saving account that offer 8% simple
interest on the account. Find:
a) the simple interest earned after 6 years.
Solution:
b) the simple amount of the investment.
Solution:
Example 6.8:
On 15th May 2014, Encik Firdaus invested RM4500 at 3% simple interest in a
bank. Find the amount in the bank on 28th Jun 2008.
Solution:
70 CHAPTER 6
Example 6.9:
The amount paid for a personal loan taken for four months was RM5621.78.
The loan was charged a simple interest rate of 3.88%. How much was the
loan?
Solution:
Example 6.10:
How long does it take for RM8500 to accumulate to RM9775 at a simple
interest rate of 5% per annum?
Solution:
Example 6.11:
Elia saved RM5500 in a bank account that gives r% simple interest. The
money accumulated to RM5534.36 after 57 days.
a) Calculate the interest earned.
Solution:
b) Calculate the interest rate given.
Solution:
SIMPLE INTEREST 71
EXERCISES
6.1 Thaqif borrowed RM 5000 from Fathi to buy a Laptop. They have agreed that
Thaqif should pay a simple interest of 5% per year. How much is the interest
paid if Thaqif borrowed for three years?
6.2 On 15 Feb 2013, Salamah borrowed RM3350 from a bank and was charged 7%
simple interest. After 70 days, she paid the loan. Find
a) the repayment date.
b) the amount she has to pay.
6.3 Define the period of investment if a principal RM975 invested in an account

paying 15% simple interest accumulated to RM1238.25.
6.4 RM6788 was invested by En. Roslan into CIMB Bank. After 4 years 3 months,
the money in his account bank amounted to RM7456. Find the simple
interest rate that was offered by the bank.
6.5 Kasmidiana takea a loan worth RM2500 for 72 days. On 8th August 2010, she
settled the loan at 3.1% per annum simple interest. Find
a) the amount he has to pay.
b) the date she borrowed the money.
6.6 Aiman deposited RM x in an account at the rate 6% simple interest. After 2

years the total amount in the account was RM4567.09. Find x .
6.7 On 8thMay 2012 Siti Khadijah borrowed a certain amount of money from a
bank and was charged 9.5% simple interest. On 10th July 2012 she settled
the loan by paying RM6606.58. Find
a) The period of the loan (in days).
b) The amount borrowed.
c) The interest earned.
6.8 On 2nd march 2013, NurAin borrowed RM1800 from a bank that charged 4.6%
simple interest. She paid back the loan on 15th Jun 2013. Find
a) The term of the loan (in days).
b) The amount of payment on 15th July 2013.
c) The interest earned.
6.9 Adam Fitri invested a sum of money at 6.5% simple interest. After 5 years
the accumulated amount was RM5600. Find
a) The amount of money invested.
b) The amount of interest earned.
6.10 Azman deposited RM3550 into account that pays 7.5% simple interest. After
t years, the amount was worth RM5680. Find the value of t.
6.11 Ramlan needed money to buy lawn equipment. He borrowed RM500 for
seven months and paid RM53.96 in interest. What was the rate of interest?
72 CHAPTER 6
6.12 Siti borrowed RM1500 and agreed to repay the loan in 60 days at 7% per
annum simple interest. If she settle the loan on 9th June 2014, find
a) the date she borrowed the money.
b) the simple amount of the loan.
6.13 En Zahari borrowed RM15,000 at 4.2% simple interest. The total interest
payable over the period of the loan is RM4410. How many years will it take
her to repay the loan.
6.14 Pn Aini deposited RM3300 in a saving account. What simple interest rate
must she get to have RM5115 in her account in 10 years.
6.15 On 19th October 2014, Ariana borrowed RM2500 from a bank for 63days. The
bank charged a simple interest rate of 4.5% per annum. Find
a) the payment date.
b) the amount of interest.
c) the simple amount she has to pay.
6.16 En. Mohd Zailani starting her own small business with borrow RM10,000 from
the Islamic Bank at a 6.6% simple interest rate for 3 years. Find the amount
of interest he will pay on this loan.
6.17 Nur Aliah borrowed a sum of money to buy a personal computer from her
parents. To tech financial accountability, her parents charge at 2.5% simple
interest. If she borrow RM2700 and pays it back in 16months. How much
should she return to her parents?
COMPOUND INTEREST 73
CHAPTER 7
COMPOUND INTEREST

use the compound Interest formula to find the future value,
compound interest amount and present value of investments and
loans.
determine the equivalent effective rate.
Before you learn this chapter, you must watch

the video from YouTube. You can refer to the
address listed below.
url part 1-2:
https://www.youtube.com/watch?v=y
9qzQ782FFI
url part 2-2:
https://www.youtube.com/watch?v=G
b_oABFQAWQ
74 CHAPTER 8
7.1 DEFINITION
Interest calculated on the initial principal and also on the accumulated
interest of previous periods of a deposit or loan.
Compound interest can be thought of as interest on interest, and will
make a deposit or loan grow at a faster rate than simple interest, which
is interest calculated only on the principal amount.
7.2 COMPOUND INTEREST

The formula used to calculate compound interest is:
where
- future value/compound amount after n interest periods
- original principal
- periodic interest rate where
- annual nominal rate
- frequency of conversions
- number of compounding periods where
The compound interest, is the difference between the future value and
the original principal where;
The following table contains the commonly used of frequency of

conversions.
Terms Frequency of conversions ( )

Annually 1
Semi-annually 2
Quarterly 4
Monthly 12
Weekly 52
Daily 365
Every 6 months 2
Every 4 months 3
Every 3 months 4
Every 2 months 6
Example 7.1:
Find the future value of RM13,500 which was invested for
a) 3 years 6 months at 9.8% compounded semi-annually.
Solution:
b) 3 years 6 months at 9.8% compounded quarterly.
Solution:
c) 3 years 6 months at 9.8% compounded monthly.
Solution:
d) 3 years 6 months at 9.8% compounded every 2 months.
Solution:
76 CHAPTER 8
Example 7.2:
Seroja borrowed RM7900 at 3.78% compounded quarterly for five years. Find
the amount of interest charged.
Solution:
Example 7.3:
Robin saved RM30,000 in a bank at an interest rate of 4.25% compounded
every 4 months. Eight years later, he withdrew RM15,000 from the account.
Calculate the amount left in the Robins account just after the withdrawal.
Solution:
Example 7.4:
Ten years ago, Tajul Fahin invested RM10,000 into his account at
compounded quarterly. Now the account balance has accumulated to
RM18,140.18. Find the interest rate compounded quarterly.
Solution:
7.3 PRESENT VALUE

Present value, also known as present discounted value, is a future amount
of money that has been discounted to reflect its current value, as if it
existed today.
The formula used to calculate the present value is:
Example 7.5:
Five years ago, RM was invested at a bank that offered an interest rate of
7% compounded every 6 months. If the balance in the account today is
RM31,033.17, find the value of .
Solution:
Example 7.6:
A new model of smart phone is estimated to cost RM2199 in 12 months
time. If Frodo intends to buy this smart phone in 12 months time, how
much must he save now in an account that pays 8.2% compounded
quarterly?
Solution:
78 CHAPTER 8
Example 7.7:
If Arween invested RM9000 and after years, she got RM21,705.43 with
interest 9% compounded semi-annually. How long was the investment?
Solution:
7.4 EFFECTIVE RATE

Effective rate is an actual interest paid on a loan, or earned on a deposit
account, depending on the frequency of compounding or effect of inflation.
It is used to compare the annual interest between loans with different
compounding terms.
The formula used to calculate the effective rate is:
Example 7.8:
Find the effective rate which is equivalent to 9.35% compounded quarterly.
Solution:
Example 7.9:
Which yields more interest, 7.2% compounded weekly or 7.25% compounded
monthly?
Solution:
Example 7.10:
Farish wishes to invest a sum of money in a fixed deposit account for one
year. He has two options:
1) United Bank which offers 3.89% interest compounded quarterly.
2) Commercial Bank which offers 3.92% interest compounded semi-
annually.
Which bank should Farish choose?
Solution:
80 CHAPTER 8
EXERCISES
7.1 Find the future value of RM50,300 which was invested for:
a) 7 years at 4.35% compounded semi-annually,
b) 8 years 3 months at 6.8% compounded quarterly,
c) 6 years 9 months at 9.6% compounded monthly,
d) 20 weeks at 5.7% compounded weekly,
e) 150 days at 4.23% compounded daily.
7.2 Putri invested RM5350 on 28th September 2008 into an account that pays
4.24% compounded semi-annually. Find the interest that was earned on 28th
September 2014.
7.3 Lana wishes to have RM9000 in the account in five years. How much should
she save in an account now if the bank pays 8.9% interest compounded
monthly?
7.4 On Rezas 13th birthday, his mother deposited RM3000 in a fixed deposit
scheme that earned 6.35% interest compounded every 2 months. What
would be the amount on his 18th birthday and the interest earned?
7.5 A savings account which was opened 260 weeks ago is now worth
RM43,182.16. If the account offers interest at 5.2% compounded weekly,
find
a) the original investment
b) the interest earned.
7.6 Indah Harlina deposited a sum of money in a Kitty Account that offered
interest 12.5% compounded semi-annually. After 7 years the accumulated
amount in the account is RM103,516.33. Find;
a) the amount of money invested.
b) the effective rate which is equivalent to the nominal rate given.
7.7 Find the effective rate that is equivalent to 8.32% compounded quarterly.
7.8 Samuel can invest his money either in Bank P that gives 4.62% compounded
monthly or in Bank Q that gives 4.6% compounded weekly. If Samuel wishes
to invest RM20,000 for one year, which bank do you suggest him to invest in?
Show your workings.
7.9 Eastern Bank offers two interest rates for fixed deposits:
Option 1: 9.55% compounded every six months
Option 2: 9.45% compounded every two months
If you want to invest for one year, which offer would you choose? Show your
calculation.
7.10 Roberto invested RM3880 into an account that paid 11.2% compounded
monthly. He intends to keep the account untouched for five years.
However, after 2 years he is in need of money and had to withdraw RM1500
from the account.
a) Find the amount left just after the withdrawal.

b) Find the effective rate which is equivalent to the nominal rate above.
7.11 If Syakir invested RM9000 and after years, he got RM10,981.71 with
interest at 4% compounded quarterly. How long was the investment?
7.12 Ten years ago, Diana invested RM12,000 into his account at compounded
every 2 months. Now the account balance has accumulated to RM21,800.36.
Find the interest rate compounded every 2 months
7.13 At what rate compounded semi-annually will RM6000 become RM34,460.95

in 15 years.
7.14 Alicia wishes to invest RM9500 in a fixed deposit account for one year. She
has two options:
Option 1: Frozen Fund offers 4.45% interest compounded every 4 months.
Option 2: Hello Kitty Fund offers 4.42% interest compounded every 2
months.
Which fund should Alicia choose? Give your reason.
7.15 Faiz deposited RM14,000 in a savings account at 3% compounded quarterly

for 4 years. Find the future value and the interest earned.
7.16 Find the interest on RM2525 for five years at 7.25% compounded every
month.
7.17 Aiman invests RM5800 in a savings account. Calculate the amount in the
account at the end of six years if the interest rate is 7.2% compounded
weekly.
7.18 RM was deposited in savings account at 3% compounded every four months.

Three years later, RM1950 was withdrawn from the account and the balance
was RM3281.06. Find the value of .
7.19 Seven years ago, RM was invested at a bank that offered an interest rate
of 4% compounded semi-annually. If the balance in the account today is
RM9236.35, find the value of .
7.20 East Bank offers an interest of 6.5% compounded semi-annually while West
Bank offers an interest of 6% compounded monthly. Find the effective
interest rate corresponding to the given nominal interest rate for each bank.
If Razzin wants to invest his money, which bank should he invests his money?
82 CHAPTER 8
CHAPTER 8
ANNUITY

find the future value of Annuity
find the present value of annuity
solve the annuity payment R using formula future value and
present value.
Before you learn this chapter, you must

watch the video from YouTube. You can
refer to the address listed below.
url annuity part 1-4:
https://www.youtube.com/watch?
v=gAC7kIcw9eY
url annuity part 4-4:
https://www.youtube.com/watch?
v=1zMKd3EKW_s
ANNUITY 83
8.1 DEFINITION
An annuity may be defined as a series of payments/deposits made normally
at equal intervals of time over a defined period of time.Annuities are very
common and vital in our economic life such as house/shop rent, instalment
payments on automobiles and houses, mortgage payments and interest
payments on money invested.
There are two basic types of annuities which are ordinary annuity and
annuity due. We only consider to ORDINARY ANNUITY where the
payments/deposits are made at the end of the payment or investment
period.
8.2 FUTURE VALUE OF AN ORDINARY ANNUITY

Lets say, you deposited RM100 into an account at the end of every month
for 2 years at a rate of 5% compounded monthly. You want to know the
amount accumulated in your account at the end of 6 months. As you know
(you already learned from the previous chapter), in order to get the future
value of an investment you have to use .
0 100 100 100 100 100 100
R R R R R R
100 = 100
If we use formula to calculate the amount accumulated you

may need a few sheet of papers just to solve one problem! Therefore,
instead of using Compound Interest Formula, we may use Annuity formula to
get the answer (much easier).
Future Value Formula
where
- the future value of annuity
- periodic deposit/investment
- the interest rate per period
- the number of deposits invested
84 CHAPTER 8
By using the same scenario, we can find the lump sum at the end of 6
months with this annuity formula directly,
Example 8.1:
Amin intends to buy a tablet 5 years from now. In order to let his dream
comes true, he has to save RM150 into a bank that offered 3.5%
compounded semi-annually. Find his total amount of money in his account
at the end of 5 years.
Solution :
ANNUITY 85
DO IT YOURSELF!
Upin invested RM300 every week into an investment account. He was
offered 4% compounded weekly. Calculate the accumulated amount in his
account at the end of 100 weeks.
Solution :
86 CHAPTER 8
8.3 PRESENT VALUE OF AN ORDINARY ANNUITY

An example of an annuity with a present value is a loan from a bank and
repayments for the term of the loan such as housing loan and car loan. Bank
gives you the lump sum now at present and you need to pay back bank after
that in periodic payments.
Lets say, Ah Leong has to pay RM200 every 2 months for a year to settle a
loan at 10% compounded every 2 months. Determine the original value of
the loan.
0 200 200 200 200 200 200
R R R R R R
2 193.496
2
2
Instead of using Compound Interest Formula, we can generate the present

value of annuity formula by adding up all the present values of the
repayments.
Present Value Formula
where
- the present value of annuity
- periodic payments
- the interest rate per period
- the number of payments paid
Lets solve Ah Leongs case by using annuity formula,

ANNUITY 87
Example 8.2:
Alia borrowed a certain amount from ABC Bank that offered 6% compounded
quarterly for 5 years. She needed to pay RM375 every 3 months to settle all
of the loan. Find the total amount of loan.
Solution:
DO IT YOURSELF!
You plan to buy a car and make an instalment for 7 years. You can commit
RM350 of your monthly salary to pay the instalment of the car every month.
Bank offers you 4% compounded monthly. How much loan can you take in
order to buy yourdream car?
Solution:
88 CHAPTER 8
NOTES:
Present Value of annuity, is not only for a loan. It can be a savings as
well. Once you have an amount of money in your account, you can simply
withdraw it at any time but if it is in adefined period of time or regular,
annuity concept could be applied.
Savings =
0

0
will be the withdrawals years
8.4 PERIODIC PAYMENTS/ DEPOSITS/ WITHDRAWALS

We have already learned the two formulae,
FUTURE VALUE PRESENT VALUE
where we solve for and . We will discuss on how to find the periodic
payments or amount of deposits or amount of withdrawals in the following
section.
could be found by using both formulae. Lets transform the respective
formula and make as the subject. It will be
Both formulae can be used to find the but it depends on the questions and
cases given.
ANNUITY 89
Example 8.3:
Haziq intends to get married in 3 years time and the cost of the wedding is
RM13,500. Haziq deposits to a bank that offers 3% compounded monthly.
How much should he deposit in order to fulfill his intention?
Solution:
90 CHAPTER 8
Example 8.4:
ANNUITY 91
Example 8.5:
Aqil purchased a house for RM400,000 from BNC Bank. He pays RM35,000
down payment and the balance need to be paid for 25 years in monthly
basis. If bank charged 7.5% compounded monthly, determine the monthly
payment that Aqil should pay to the bank.
Solution:
92 CHAPTER 8
EXERCISES
8.1 Find the future value of the following ordinary annuity.

a) RM640 per year for 7 years at the rate of 5% compounded annually.
b) RM455 every 3 months for 3 years at the rate of 4% compounded
quarterly.
c) RM680 every month for 6.75 years at the rate of 6.5% compounded
monthly.
d) RM100 every day for 250 days at the rate of 3% compounded daily.
e) RM540 every six months for 7 years at the rate of 2% compounded
semi-annually.
8.2 Find the present valueof the given ordinary annuity.

a) RM470 every 3 months at the rate of 3.5% compounded quarterly for 5
years.
b) RM550 every day at the rate of 4% compoundeddaily for 300 days.
c) RM830 every 6 months at the rate of 6.5% compounded semi-annuallyfor
6.5 years.
d) RM180 every week at the rate of 5% compounded weekly for 125 weeks.
e) RM540 every 2 months for 7 years at the rate of 2% compounded every
2 months.
8.3 Afrina opened a savings account by making deposits of RM200 every month
for 5 years. The account earns interest at 5% compounded monthly.
Calculate
a) the accumulated amount in the account at the end of the investment
period.
b) After 5 years of investment, Afrina intends to withdraw RMY every month
for 2 years. Find the value of Y.
8.4 MARA wants to provide a scholarship of RM4500 each year over 3 years to
the best student in KPTM Bangi. The money is worth 2.5% compounded
annually, determine the amount that must be invested now so that the
scholarship is provided for over the three years.
8.5 Rahinah bought a house at a price of RM500,000. She paid 10% down
payment and the balance was settled by making equal monthly payments at
4.5% compounded monthly for 30 years. Calculate
a) the amount of loan.
b) the monthly payment.
8.6 Faizal deposited RM150 at the end of every 6 months for the next eight
years and he was offered 6% compounded semi-annually. How much amount
in his account at the end of the investment period.
8.7 Fairuz wants to go to a university to complete a diploma course in three

years time. It will be estimated RM27,000 to finish the course. If he invests
in an account every month for the next 3 years that offered 4% compounded
monthly, determine the amount should he saves in the account every
month.
ANNUITY 93
8.8 Huda purchased a land by making a down payment of RM23,000. The

balance was borrowed from a bank which charged interest of 4.2%
compounded monthly for 25 years with monthly payment of RM2200.
a) Find the amount borrowed.
b) Find the cash price of the house.
8.9 Alya plans to get married in 4 years from now. She needs RM25,000 for the
reception. How much should Alya saves every 2 months into her account
that gives 5.6% compounded every 2 months to accumulate the amount.
8.10 Iffah invests RM650 every 3 months, paid in savings account for 15 years.
What is the balance of the account at the end of the investment period
assuming an interest rate of 7% compounded quarterly was offered.
8.11 Zakwan amortizes a loan of RM90,000 for a new car by obtaining a 9 years
loan at a rate of 12% compounded monthly. Determine the monthly
payment.
Final Examination May 2014 SETC/TBM1063
8.12 Mr. & Mrs Choo wants to purchase a new house and need a down payment of
RM40,000. If they want to buy the house in 2 years, how much should they
save each month in their savings account that pays 3% per annum
compounded monthly?
8.13 Lydia is investing RM300 at the end of every three months in a scheme which
pays 6% compounded quarterly. The accumulated amount at the end of five
years will be enough for down payment for a new car. What is the value of
this down payment?
8.14 Garcia wants to buy a cabinet for RM7000. She pays RM2000 down payment
and agrees to pay the balance in 15 equal payments. If the seller charges
5% compounded monthly, find her monthly payment.
Final Examination May 2014 SETA/TBM1063
8.15 What is the present value of an annuity if the size of each payment is RM300
payable at the end of each quarter for 5 years and interest rate is 4%
compounded quarterly?
8.16 Adam have just purchased a condominium for RM350,000. He obtains

financing with the following term: a 10% down payment and the balance is
at 9% interest compounded monthly for 30 years.
a) What is his down payment?
b) What is the loan amount?
c) How much is their monthly payment on the loan?
8.17 Mr. Harith plans to invest RM300 at the end of each year for 12 years in a
savings account. If the account pays 8% compounded annually, how much
will he have at the end of the 12 years?
94 CHAPTER 8
8.18 Ariana wants to invest a certain amount of money every 3 months so that
she will have RM15,000 in 3 years for a down payment of her new car. The
account pays 7% compounded quarterly. How much should she deposit each
quarter?
ANNUITY 95
ANSWERS:
CHAPTER 1
1.4. 5:6:8 b) r = 29.6%
1.5. Ali RM2700, Bakar RM1800 2.13. a) List Price = RM1200
1.6. RM1750 b) x = 5%
1.7. 975 2.14. List Price = RM2700, r = 19.25%
1.8. 35 2.15. a) List Price = RM5000
1.9. Radziah RM220 000, Radzi RM660 000, b) x = 5%
Ridhwan RM330 000 2.16. r(FS) = 24%, r(RS) = 23.36%,
1.10. 34 FS Company offers a better discount on
1.11. RM1125 its merchandise
1.12. a) 3 2.17. a) RM2745.50
b) Azmi RM3600, Azam RM2700 b) 20th February 2014
1.13. a) 7 b) RM7000 2.18. RM12387.98
1.14. 6 2.19. a) trade discount = RM624
1.15. a) 7 b) RM700 b) cash discount = RM366.08
1.16. 2 c) net payment = RM4209.92
1.17. a) 4 b) RM6000 2.20. a) 23rd March 2014
1.18. Stok A RM4000, Stok B RM16 000, b) RM2296.59
Stok C RM8000
1.19. 4 CHAPTER 3
1.20. a) y=3x b) y=6 c) x=5 3.1. a) RM 80 b) RM 470.40
1.21. a) y=4x b) y=44 c) x=10 c) RM 2161.34 d) RM 85.33
1.22. a) y=2/5x b)x=25 c) y=4 e) RM 477.27 f) RM 2169.15
1.23. a) y=1/7x b) x=42 c) y=2 3.2. a) RM 51.20 b) RM 375
1.24. RM288 c) RM 1923.58 d) RM 48
1.25. RM12.50 e) RM 369.60 f) RM 1794.32
1.26. RM50 000 3.3. a) 21.57 % b) RM569.24
1.27. RM232 960 3.4. RM 60.11
1.28. a) RM947.20 b) 250 hours 3.5. RM 54.36
3.6. a) RM 465 b) RM 548.70 c) 8.88%
CHAPTER 2 3.7. a) 38 % b) RM 20.01 c) RM 15.21
2.1. amount of trade Net Price 3.8. a) RM 6.75 b) RM 1.35 c) 10.37 %
discount 3.9. a) RM 34.50 b) RM 52.50 c) 43.75 %
a) RM12.50 RM237.50 3.10. a) RM 3.04 b) RM6.08 c) RM 0.31
b) RM9 RM36 3.11. a) RM 86.37 b) RM 384.70
c) RM1575 RM1925 c) RM 1211.11 d) RM 652.34
d) RM60 RM340 e) RM 86.87 f) RM 469.86
2.2. Net Price = RM116.25 g) RM 7204.50 h) RM 424.56
3.12. a) RM 376.32 b) RM 429 c) 10.91 % d)
2.3. List Price = RM300 Net Loss RM 4
2.4. r = 20% 3.13. a) RM 19.53 b) RM 40.98
2.5. RM1205 3.14. a) RM 2.10 b) RM 3.25
2.6. amount of trade Net Price c) RM 1.15 d) RM 2.62
discount e) RM 0.63 f) Net Profit RM 0.18
a) RM1087.50 RM6412.50 3.15. a) RM 50 b) RM 245 c) Net Loss RM 1
b) RM573.82 RM1526.18 3.16. a) RM 324, RM 194.40 b) RM 243
c) RM157 RM523 c) RM 259.20, Net Profit RM16.20
d) RM48.42 RM401.58 3.17. a) RM 333.70 b) RM 357.20
2.7. Net Price = RM1665.66 c) RM 272.60 d) 21.28 %
2.8. List Price = RM909.09 e) Net Profit RM 12.80
2.9. x = 8%
2.10. a) sofa set = RM1407.60, bedroom set =
RM1720.40, bookshelves = RM 703.80 CHAPTER 4
b) RM6959.80 4.1. a) 3 b) -4 c)-2 d) -8 e) 1 f)
2.11. a) r = 14.5% 4.2. a) 6 x y 4 0
b) r = 39.44%
c) r = 49.6% b)
5x y 0
2.12. a) Net Price = RM421.70
96 ANSWER
1 9 b)
c) 4 x y 2 0
x 0 5/4
3x 7 y 25 0 y -5 0
d)
3
e) 2 x y 0
f) x y 8 0 c)
4.3. a) General : 2 x 3 y 5 0 ;Slope
x 0 25/2
2 5 y 20 0
intercept form : y x
3 3
1. b) General : 3x 2 x 6 0 ;Slope
3 d)
intercept form : y x 3
2 x 0 -2
4 x 9 y 5 0 ;Slope
3/2
2. c) General : y 3/2 0
4 5
intercept form : y x
9 9 e)
d) General : 2 x y 7 0 ;Slope
intercept form : y 2 x 7 x 0 3/2
y -3 0
4.4. a) ( x, y) (1, 3)
b)
( x, y) (2, 3)
f)
c)
( x, y) (2, 1)
x 0 4/5
d)
( x, y) (5, 5) y -2 0
e)
( x, y) (1, 3)
f)
( x, y) (4,1)
4.5. 2 g)
p q 28
5
x 0 5
4.6. 8
p q 29 y 5/7 0
16000 5 x
4.7. 5
p q 90
2 h)
4.8. a) Qe:5, Pe :35
x 0 5
b) Qe: 300, Pe : 350
y -10 0
c) Qe: 25, Pe : 440
CHAPTER 5
5.1. a)
i)
x 0 -3
y 6 0 x 0 10/3
y 20 0
x
ANSWER 97
j) x 0 5
y 5 0
x 0 10/3 c) y
y 20 0
x 0 20 20
y 10 0
10
k) x 0 10
y 20 0 x
x 0 4 10 20
y -3 0 d)
x 0 65 y
l) y
y 26 0
90
x 0 50 50
x
y 50 0 26
x
m) y
30 50 65
x 0 30
y 90 0
5.3 a)
a) i) max:
b) ii)
n)
x
iii)
y= -1 c)
x 0 35
y 70 0
o) y
x 0 40
y 30 0
x 0 75
y 25 0
y
5.2 a) y
70
x 0 30 50
y 15 0 30
15
25
x 0 25 x
y 50 0 25 30 35 40 75
x
b) y
8 iv) Max profit, RM348 at (12,21)
x 0 4
5
y 8 0 b)
4 a) i) min:
x 0 8 x b) ii)
y 4 0 4 5 8
98 ANSWER
iii)
c) iii)
x 0 8 c)
y 24 0 x 0 5
y 5 0
x 0 16
y 16 0 x 0 6
y 3 0
x 0 24
y 10 0 x 0 4
y
y 6 0
y
24 6
16 5
10 3
x
8 16 24 6 x
4 5
iv)Min Cost: RM9638 at (5.42,7.74)
d) iv)Min Cost: RM1190 at (2,3)
c)
e)
a) i) max:
a) i) max:
b) ii)
b) ii)
iii)
iii)
c)
x 0 24 c)
x 0 75
y 16 0
y 45 0
x 0 42
x 0 45
y 14 0
y 90 0
x 0 18
x 0 55
y 24 0
y 55 0
y
y
24
90
16 55
14
45
x x
45 55 75
18 24 42
iv) Max Profit: RM3400 at (12,8)
d) iv) Max Profit : RM19500 at (25,30)
d)
f)
a) i) min:
a) i) max:
b) ii)
b) ii)
ANSWER 99
h)
a) i) max:
b) ii)
iii)
x 0 10 c)
y 20 0 iii)
c)
x 0 210
x 0 12 y 420 0
y 12 0
x 0 250
x 0 15 y 500 0
y 10 0
y
x 0 300
y 200 0
y
20
500
12
10
420
x
10 12 15 200
iv) Max Profit: RM16.20 at (6,6) x
210 250 300
g)
a) i) min: iv) Max Profit: RM2670 at (170,180)
b) ii)
CHAPTER 6
6.1 I = RM750
6.2 a) 26 April 2013 b) S=RM3394.97
iii) 6.3 t=1.8
6.4 r=2.07%
x 0 23 c) 6.5 a) S=2515.29 b) 28th May 2010
y 46 0 6.6 P=RM4077.76
6.7 a) 63 days b) P=RM6500
c) I=RM106.58
x 0 32 6.8 a) 105 days b) S=RM1823.82
y 32 0 c) I=RM23.82
6.9 a) P=RM4226.42 b) I = RM1373.58
6.10 t=8
x 0 44 6.11 r=18.5%
y 22 0 6.12 a) 10th April 2014
y b) S=RM1517.26
6.13 t=7
46 6.14 r=5.5%
32 6.15 a) 21 December 2014
b) I=RM19.42
22 c) S=RM2519.42
6.16 RM1980
6.17 S=RM2790
23 32 44 x
iv)Min Cost: RM1780 at (20,12) CHAPTER 7
7.11. a) RM67,981.86 b) RM87,732.28
c) RM95,911.59 d) RM51,414.29
100 ANSWER
e) RM51,181.99 b) b) RM 315,000.00
7.2 S = RM6,881.51 I= c) c) RM 2,363.28
RM1,531.51 8.17
9) RM 5,693.14
7.3 P = RM5,776.90 8.18
10) RM 1,134.21
7.4 S = RM4,114.20 I= 11)
RM1,114.20 12)
7.5a) a) P = RM44,300.00 b) 12.89%
7.6 a) P = RM44,300.00 b) 12.89%
7.7 8.58%
7.8 Bank P: 4.72% Bank Q: 4.71%
7.9 Option 1: 9.78% Option 2:
9.83%
7.10 a) S = RM4,849.12
Balance =RM3,349.12
b) 11.79%
7.11 5 years
7.12 6%
7.13 12%
7.14 Frozen Fund: 4.52%
Hello Kitty Fund: 4.51%
7.15 S = RM15,777.89 I = RM1,777.89
7.16 S = RM3,624.26 I=
RM1,099.26
7.17 S = RM8,931.27
7.18 P = RM3,000.00
7.19 P = RM7,000.00
7.20 East Bank: 6.61%
West Bank: 6.17%
CHAPTER 8
8.1a) a) RM5,210.89
b) b) RM6,801.08
c) c) RM68,912.14
d) d) RM25,261.17
e) RM8,692.32
8.2a) a) RM 8,980.54
b) b) RM162,271.44
c) c) RM 8,687.53
d) d) RM 21,190.83
e) e) RM 22,530.52
8.3a) a) RM 13,601.22
b) b) RM 483.24
8.41) RM 12,852.11
8.5a) a) RM 450,000.00
b) b) RM 2,280.08
8.62) RM 3,023.53
8.73) RM 707.15
8.8a) a) RM 408,206.95
b) b) RM 431,206.95
8.94) RM 818.45
8.10 RM 68,038.89
8.11
c) RM 1,366.58
8.12
5) RM 1,619.25
8.13
6) RM 6,937.10
8.14
7) RM 344.55
8.15
8) RM 5,413.67
8.16a) a) RM 35,000.00

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PERCENT, RATIO, VARIATION 1

PERCENT, RATIO, VARIATION

Upon successful completion of the chapter, you should be able to:

1.1.1 Changing percent into decimal:

1.1.2 Changing decimals into percent:

b) The total investment.

b) The amount received by Kak Sal and Upin.

1.1 Change each of the following percentage into decimal form.

i) 96% j ) 6.5% k ) 7.83% l ) 9%

m) 10.9% n) 17.2% o) 42.69% p) 53.73%

q) 16% r ) 55% s) 8.7% t ) 16%

1.2 Change each of the following decimal number into percent.

e) 0.4359 f ) 0.6709 g ) 0.8215 h) 0.9213

i) 0.38 j ) 0.39325 k ) 0.75164 l ) 0.23017

m) 0.962 n) 0.58423 o) 0.10709 p) 0.37599

1.20 If y x and y 12 when x 4 , find

1.21 If y x and y 16 when x 4 , find

1.22 If y x and y 2 when x 5 , find

1.23 If y x and y 3 when x 21 , find

TRADE AND CASH DISCOUNT

Upon successful completion of the chapter, you should be able to:

LETS SURF THE INTERNET!

Before you learn this chapter, you must watch a

url trade discount part 2:

2.1 TRADE DISCOUNT

Amount of trade discount = list price x trade discount rate

Formula for calculating net price:

Net price = list price trade discount

a) What is the amount of a trade discount?

b) What is the net price?

2.2 CHAIN DISCOUNT

Formula for calculating the net price for a chain discount:

2.3 SINGLE DISCOUNT EQUIVALENT

a) single equivalent rate of discount.

2.4 CASH DISCOUNT

a) the last date to get 8% cash discount.

b) the payment if the invoice is paid on 26th February 2013.

2.5 TRADE AND CASH DISCOUNT

a) the total payment made.

b) the last date to settle the invoice.

c) the single discount equivalent to the trade discount given.

a) the trade discount offered.

b) the cash discount offered.

c) the net payment.

List Price Rate of trade discount

2.5 A bill of RM1400 including delivery charge of RM100 is offered a trade

a) Find the net price of each item.

2.11 Find the single discount equivalent for the following:

2.12 A camera listed for RM599 less 20% and 12%.

Transportation cost : RM150

Red Sdn. Bhd. received an invoice as shown above. Find

a) the last date to receive 5% cash discounts.

MARKUP AND MARKDOWN

Upon successful completion of the chapter, you should be able to:

LETS SURF THE INTERNET!

Before you learn this chapter, you must

3.2.1 Markup Percent

b) the selling price.

b) the cost price.

3.3.1 Markdown Percent

b) the markdown rate.

Sometimes, it is quite difficult to determine the new selling price or the