ANSWER_ASSIGNMENT_SAVINGS AND INTEREST_10 SEPT 2021

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Page 61 : Question c

Kasturi’s sister won RM 12 750 in a short story writing
competition. She saved the money in her savings account and
was given an interest rate of 2.5% per year. How much will she
have after 2 years?
Key words:
a. Amount received RM 12 750
b. Save in a bank
c. Interest rate 2.5% per year
d. Total amount after 2 years ?

Operations:
Multiplication x
Division ÷
Addition +

Working steps: (using Method 1)

Balance at Total savings
Year beginning of Interest rate Interest value end of the
the year year

1 RM 12 750 2.5 % ? ?

2 ? 2.5% ? ?

Interest value for the 1st year

Interest value = savings x interest rate

RM 12 750 x 2.5
100

= RM 12 750 x 2.50.25
100 1

= RM 1275 x 0.25
1

= RM 1275 x 0.25 = RM 318.75

2

Find the total savings for the 1st year
Total savings
= saving at the beginning 1st year + interest value 1st year
= RM 12750 + RM 318.75
= RM 13 068.75

Fill in the table. Interest Interest value Total savings end of
Balance at rate the year
2.5 %
Year beginning of the 2.5% RM 318.75 RM 13 068.75
year
??
1 RM 12750

2 RM 13068.75

Find the interest value for the 2nd year.

Interest value = savings x interest rate 1306875
X 25
RM 13 068.75 x 2.5
100 6534375
2613750
2.5 0.025 32671875
100 32671875 (5 d.p)--> 326.71875
= RM 13 068.75 x 1
Round off to 2 d.p (represent cent)
= RM 13 068.75 x 0.025
1 RM 326.71875 --> RM 326.72

= RM 13 068.75 x 0.025 = RM 326.72

Find the total savings for the 2nd year.

Total savings
= saving at the beginning 2nd year + interest value 2n year
= RM 13 068.75 + RM 326.72
= RM 13 395.47

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Page 62 : Question 1e

The table shows the savings and yearly dividend received by Irfan and Li Suan from
different financial agencies. Whose savings is more after 2 years.
Name Savings Yearly dividend
Irfan RM 4800 5%

Li Suan RM 5000 3.5%

Working steps: (using Method 2)
Table for Irfan

Year Balance at beginning Interest rate Total savings end of the year
of the year ?
?
1 RM 4800 5%
5%
2? 5%

Total savings for 1st year
RM 4800 x 100% + 5%
100 %
RM 4800

105%

= RM 4800 x 105%

= RM 4800 x 105
100

= RM 4800 x 105
100

= RM 48 x 105
1

= RM 48 x 105 = RM 5040

4

Total savings for 2nd year 5%
RM 5040 x 100% + 5%
100 %
RM 5040
105%

RM 5040 x 105
100

= RM 5040 x 105
100

= RM 504 x 10.5
1

= RM 504 x 10.5 = RM 5292

Balance at
Year beginning of Interest rate Total savings end of the year

the year

1 RM 4800 5% RM 5040

2 RM 5040 5% RM 5292

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Table for Li Suan

Year Balance at beginning Interest rate Total savings end of the year
of the year ?
?
1 RM 5000 3.5 %
3.5%
2? 3.5%

Total savings for 1st year
RM 5000 x 100% + 3.5%

100 %
RM 5000

103.5%

= RM 5000 x 103.5%

= RM 5000 x 103.5
100

= RM 5000 x 103.5
100

= RM 50 x 103.5
1

= RM 50 x 103.5 = RM 5175

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Total savings for 2nd year 3.5%
RM 5175 x 100% + 3.5%
100 %
RM 5175
103.5%

RM 5175 x 103.5
100

= RM 5175 x 103.5
100

= RM 5175 x 1.035
1

= RM 5175 x 1.035 = RM 5356.125 (Round off to 2 d.p. --> RM 5356.13)

Balance at
Year beginning of Interest rate Total savings end of the year

the year

1 RM 5000 3.5 % RM 5175

2 RM 5175 3.5% RM 5356.13

ANSWER :

Name Savings Yearly dividend Balance savings after 2 years
Irfan RM 4800 5% RM 5292.00
Li Suan RM 5000 3.5% RM 5356.13

Therefore, Li Suan has more savings money after 2 years.

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