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Mathematics questions, chapter 3
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Consumer Mathematics: Savings and Investments, Credit and Debt

44 marks. Use Practice to check each answer as you go, or Exam to answer everything first. Show your working for Section B. Use a calculator and round money to the nearest sen.

Section A: objective questions

12 marks
Choose the correct answer. Each question carries 1 mark.
1

Question 1

Which type of bank account normally pays no interest and allows the holder to take out more than the balance (an overdraft)?
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A
A current account is used for payments by cheque and usually earns no interest. It can have an overdraft facility, with interest charged on the amount overdrawn. A savings account and a fixed deposit earn interest.
For the teacher: Remembering, low difficulty, standard 3.1.1
Textbook p. 52
2

Question 2

Encik Samad puts RM10 000 in a 12-month fixed deposit. After 5 months he needs the money. What happens if he withdraws it?
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C
Money in a fixed deposit is meant to stay until the maturity date. Withdrawing earlier means the interest rate is reduced or the interest is cancelled.
For the teacher: Understanding, low difficulty, standard 3.1.1
Textbook p. 52
3

Question 3

Which of the following is a capital gain?
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D
A capital gain is the increase in value of an asset when it is sold for more than its purchase price. Rent and dividends are current income; bonus shares are free extra shares.
For the teacher: Remembering, low difficulty, standard 3.1.1
Textbook p. 53
4

Question 4

Puan Zaini deposits RM6 000 at 4% per annum simple interest. How much interest does she earn in 9 months?
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B
I = Prt = 6 000 × 0.04 × 912 = RM180. RM240 is the interest for a full year. RM2 160 forgets to change 9 months into years.
For the teacher: Applying, low difficulty, standard 3.1.2
Textbook p. 55
5

Question 5

RM5 000 is saved at 6% per annum, compounded every 3 months. What is the matured value after 2 years?
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C
n = 4 and t = 2, so MV = 5 000 (1 + 0.064)8 = 5 000 (1.015)8 = RM5 632.46. RM5 618.00 is compounded once a year. RM5 600.00 is simple interest. RM5 151.13 uses only 2 periods.
For the teacher: Applying, medium difficulty, standard 3.1.2
Textbook p. 58
6

Question 6

Which statement correctly describes compound interest?
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A
Compound interest is worked out on the principal plus the accumulated interest, so it grows each period. Interest on the original principal only is simple interest.
For the teacher: Understanding, low difficulty, standard 3.1.2
Textbook p. 57
7

Question 7

Diagram 1 shows how RM5 000 grows at 4% per annum under simple interest and under compound interest (once a year). At the end of year 5, by how much is the compound-interest savings more than the simple-interest savings?
Line graph of RM5 000 at 4% per annum over 5 years. At year 5 the compound savings are RM6 083.26 and the simple savings are RM6 000.00
Diagram 1
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D
6 083.26 − 6 000.00 = RM83.26. RM1 083.26 is the compound interest, not the difference between the two amounts. RM6 000.00 is the simple-interest savings.
For the teacher: Understanding, low difficulty, standard 3.1.2
Textbook p. 57
8

Question 8

Encik Ramli owns 2 000 unit trust units valued at RM1.50 each. The fund declares a dividend of 8%. How much dividend does he receive?
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B
Value of units = 2 000 × RM1.50 = RM3 000. Dividend = 8% × RM3 000 = RM240. RM120 is 4%, and RM3 000 is the value of the units, not the dividend.
For the teacher: Applying, low difficulty, standard 3.1.3
Textbook p. 61
9

Question 9

According to the textbook's comparison table, which investment has a low risk level, a moderate return level and high liquidity?
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C
Unit trust: risk low, return moderate, liquidity high. Real estate has low liquidity; company shares have high risk; a fixed deposit is risk free with low return.
For the teacher: Understanding, low difficulty, standard 3.1.4
Textbook p. 66
10

Question 10

Siti uses the cost averaging strategy and invests RM600 each month for 3 months.
MonthUnit price
JanuaryRM2.00
FebruaryRM1.50
MarchRM1.20
What is her average cost per unit?
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D
Units: 600 ÷ 2.00 = 300, 600 ÷ 1.50 = 400, 600 ÷ 1.20 = 500, total 1 200. Average cost = 1 8001 200 = RM1.50. RM1.57 is the average of the three prices, which is not the average cost.
For the teacher: Applying, medium difficulty, standard 3.1.5
Textbook p. 67
11

Question 11

A credit card statement shows a balance of RM800. The minimum payment is 5% of the balance or RM50, whichever is more. What is the minimum payment?
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A
5% of RM800 = RM40, which is less than RM50. The minimum payment is therefore RM50.
For the teacher: Applying, low difficulty, standard 3.2.3
Textbook p. 76
12

Question 12

A loan of RM12 000 charges 6% per annum interest on the balance. The monthly instalment is RM200. What is the interest charged in the second month?
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B
Month 1: interest = 12 000 × 0.06 ÷ 12 = RM60.00; balance = 12 000 + 60 − 200 = RM11 860. Month 2: interest = 11 860 × 0.06 ÷ 12 = RM59.30. RM60.00 is the first month's interest; RM119.30 is the total for two months.
For the teacher: Analysing, medium difficulty, standard 3.2.5
Textbook p. 79

Section B: structured questions

32 marks
Answer all questions. Show your working.
13

Question 13

Mr Rahman places RM10 000 in a fixed deposit account for 3 years at 6% per annum. He compares simple interest with compound interest (compounded once a year).
[1 mark] (a)Calculate the simple interest for 3 years.
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Tick each point you got.
[2 marks] (b)Calculate the compound interest for 3 years.
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Tick each point you got.
[2 marks] (c)How much more does he earn with compound interest? Explain why it is more.
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Tick each point you got.
For the teacher: Applying, low difficulty, standard 3.1.2
Textbook p. 59
14

Question 14

Puan Maria saves RM20 000 in a wadiah savings account in an Islamic bank. After 1 year the bank pays her RM20 460. The extra amount is a hibah (gift) from the bank.
[2 marks] (a)Calculate the hibah as a percentage of her savings.
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Tick each point you got.
For the teacher: Understanding, low difficulty, standard 3.1.2
Textbook p. 60
15

Question 15

Encik Zamri bought a shoplot for RM300 000 on 1 January 2015 and paid a 10% down payment (RM30 000). He collected RM48 000 in rent in total. On 31 December 2024 he sold it for RM450 000. The loan repaid to the bank (including interest) was RM300 000. Other costs: stamp duty RM3 000, agent's commission RM2 000 and legal cost RM3 000. He expected a return of 50%.
[2 marks] (a)Calculate the capital gain.
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Tick each point you got.
[2 marks] (b)Calculate the return on investment.
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Tick each point you got.
[1 mark] (c)Did Encik Zamri achieve the return he expected?
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Yes
For the teacher: Applying, medium difficulty, standard 3.1.3
Textbook p. 63
16

Question 16

Puan Salmah invests RM2 000 in the same shares in March, June, September and December. Diagram 2 shows the number of units she buys each time and the price per unit.
Bar chart of units bought with RM2 000: March 1 000 units at RM2.00, June 800 units at RM2.50, September 1 250 units at RM1.60, December 1 000 units at RM2.00
Diagram 2
[1 mark] (a)Find the total number of units she owns.
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Tick each point you got.
[2 marks] (b)Calculate the average cost per unit, correct to the nearest sen.
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Tick each point you got.
[2 marks] (c)If she had put the whole RM8 000 in March at RM2.00 per unit, how many units would she own? State one advantage of cost averaging shown by your answers.
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Tick each point you got.
For the teacher: Analysing, medium difficulty, standard 3.1.5
Textbook p. 68
17

Question 17

Encik Hamid and Puan Rosnah each have RM100 000 to invest for 1 year. Encik Hamid buys a flat for RM60 000 and rents it out at RM300 a month. He puts the other RM40 000 in a fixed deposit at 3.5% per annum. Puan Rosnah buys shares worth RM100 000 which pay a 7% dividend.
[2 marks] (a)Calculate the return on investment for Encik Hamid.
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Tick each point you got.
[1 mark] (b)Calculate the return on investment for Puan Rosnah.
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Tick each point you got.
[2 marks] (c)Puan Rosnah's ROI is higher. Give two reasons why Encik Hamid's choice may still be wiser for a retired person.
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Tick each point you got.
For the teacher: Evaluating, high difficulty, standard 3.1.6
Textbook p. 71
18

Question 18

Puan Aminah's credit card statement shows a balance of RM3 600. The minimum payment is 5% of the balance or RM50, whichever is more. The bank charges 18% per annum on the unpaid balance for the next 20 days (use 365 days a year).
[1 mark] (a)Find the minimum payment.
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Tick each point you got.
[2 marks] (b)She pays only the minimum payment. Calculate the balance shown on her next statement.
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Tick each point you got.
[2 marks] (c)If she makes no payment at all, the finance charge is RM35.51 and a late payment charge of 1% of the outstanding balance (including the finance charge) is added. Calculate the balance on the next statement.
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Tick each point you got.
For the teacher: Applying, low difficulty, standard 3.2.3
Textbook p. 76
19

Question 19

Encik Kamal buys a motorcycle for RM8 000. He pays a 10% down payment and settles the balance with a loan at 5% flat interest per annum over 3 years.
[2 marks] (a)Calculate the amount of the loan and the total interest.
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Tick each point you got.
[1 mark] (b)Calculate his monthly instalment.
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Tick each point you got.
For the teacher: Applying, low difficulty, standard 3.2.5
Textbook p. 78
20

Question 20

Encik Dollah has RM50 000 to invest for 1 year. A fixed deposit pays 4% per annum and a unit trust is expected to pay a 6% dividend. He wants a return of at least 4.6% (RM2 300) and wants at least RM25 000 kept in the fixed deposit.
[2 marks] (a)Plan how he can split the RM50 000 between the two. Show by calculation that your plan gives a return of at least RM2 300.
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e.g. RM30 000 in the fixed deposit and RM20 000 in the unit trust: 1 200 + 1 200 = RM2 400, which is 4.8%
Tick each point you got.
For the teacher: Creating, medium difficulty, standard 3.1.6
Textbook p. 71