PERCENTAGE_SAVINGS AND INTEREST_PART 2

Example 1
Samsul’s received a cheque of RM 2600 payment for his book
sales. He deposited it in his bank account. The bank gives an
annual interest of 5% to every depositor. Calculate Samsul’s
total amount money after 2 years.
Key words:
a. Amount received RM 2600
b. Save in a bank
c. Interest rate 5%
d. Total amount after 2 years ?

Operations:
Multiplication x
Division ÷
Addition +

Working steps:

METHOD 1

1. Draw a table

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

1 RM 2600 5% ? ?

2 ? 5% ? ?

2. Find the interest value for the 1st year

Interest value = savings x interest rate

RM 2600 x 5
100

= RM 2600 x 5
100

= RM 26 x 5
1

= RM 26 x 5 = RM 130

3. Find the total savings for the 1st year
Total savings
= saving at the beginning 1st year + interest value 1st year
= RM 2600 + RM 130
= RM 2730

4. Fill in the table.

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

1 RM 2600 5% RM 130 RM 2730

2 RM 2730 5% ? ?

5. Find the interest value for the 2nd year.

Interest value = savings x interest rate

RM 2730 x 5
100

= RM 2730 x 5
100

= RM 273 x 0.5
1

= RM 273 x 0.5 = RM 136.50

6. Find the total savings for the 2nd year.
Total savings
= saving at the beginning 2nd year + interest value 2n year
= RM 2730 + RM 136.50
= RM 2866.50

7. Complete the table.

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

1 RM 2600 5% RM 130 RM 2730

2 RM 2730 5% RM 136.50 RM
2866.50

METHOD 2

1. Draw a table

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

the year

1 RM 2600 5% ?

2 ? 5% ?

2. Find the total savings for 1st year 5%
RM 2600 x 100% + 5%
100 %
RM 2600
105%

= RM 2600 x 105%

= RM 2600 x 105
100

= RM 2600 x 105
100

= RM 26 x 105
1

= RM 26 x 5 = RM 2730

3. Fill in the table. Interest rate Total savings end of the
year
Balance at 5%
Year beginning of RM 2730
?
the year

1 RM 2600

2 RM 2730 5%

4. Find the total savings for 2nd year 5%
RM 2730 x 100% + 5%
100 %
RM 2730
105%

RM 2730 x 105
100

= RM 2730 x 105
100

= RM 273 x 10.5
1

= RM 273 x 10.5 = RM 2866.50

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

the year

1 RM 2600 5% RM 2730

2 RM 2730 5% RM 2866.50