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    Adds Math Project 2010 (Tugasan 3)

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    Aaron Lai Chin Chen
    This document discusses a company's options for taking out a loan to fund capital investment for increased production. It includes: 1) Tables showing the relationship between selling price and demand for a computer component, and monthly repayment amounts for different loan amounts and periods. 2) Calculations to determine maximum profit based on production costs, demand and selling price. 3) Analysis of different loan options for the company based on interest rates, annual repayments, and allocating 20% of annual profit to loan repayment. 4) A prompt to explore other financial sources and discuss their advantages and disadvantages.

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    Adds Math Project 2010 (Tugasan 3)

    Uploaded by

    Aaron Lai Chin Chen
    477 views5 pages
    This document discusses a company's options for taking out a loan to fund capital investment for increased production. It includes: 1) Tables showing the relationship between selling price and demand for a computer component, and monthly repayment amounts for different loan amounts and periods. 2) Calculations to determine maximum profit based on production costs, demand and selling price. 3) Analysis of different loan options for the company based on interest rates, annual repayments, and allocating 20% of annual profit to loan repayment. 4) A prompt to explore other financial sources and discuss their advantages and disadvantages.

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    Adds math project 2010(tugasan 3)

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    This document discusses a company's options for taking out a loan to fund capital investment for increased production. It includes: 1) Tables showing the relationship between selling price and demand for a computer component, and monthly repayment amounts for different loan amounts and periods. 2) Calculations to determine maximum profit based on production costs, demand and selling price. 3) Analysis of different loan options for the company based on interest rates, annual repayments, and allocating 20% of annual profit to loan repayment. 4) A prompt to explore other financial sources and discuss their advantages and disadvantages.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    477 views5 pages

    Adds Math Project 2010 (Tugasan 3)

    Uploaded by

    Aaron Lai Chin Chen
    This document discusses a company's options for taking out a loan to fund capital investment for increased production. It includes: 1) Tables showing the relationship between selling price and demand for a computer component, and monthly repayment amounts for different loan amounts and periods. 2) Calculations to determine maximum profit based on production costs, demand and selling price. 3) Analysis of different loan options for the company based on interest rates, annual repayments, and allocating 20% of annual profit to loan repayment. 4) A prompt to explore other financial sources and discuss their advantages and disadvantages.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 5

    May 30

    SPM Form 5 Add Maths Project 2010 - Tugasan 3


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    BACKGROUND
    Every business requires some form of investment and a sufficient number of customers to buy its products or services that give profits on a continuous basis. When pricing
    experts set a selling price for a new product, their goal is to maximize profits. They begin by estimating the demand for the product at various selling prices. Generally, the
    demand for a product will increase as the selling price decreases.

    PART 1
    Table 1 shows the various selling prices and estimated demand for a particular computer component manufactured by a company, Warisan RMN.

    (a) Determine the relationship between the demand, d, and the selling price, s, by plotting a graph based on the values displayed in Table 1. Plotting of the graph can be done
    manually, using computer software such as Microsoft Excel or graphing calculator. Interpret the graph, discuss and write a brief explanation on the relationship between the
    demand and the selling price of the computer components manufactured by the company.
    (b) Assuming that the production cost of the computer component is RM50 per unit, express the yearly profit, Y, in terms of the selling price, s. Comment on your answer.
    [Note: Total Profit = Total Sales — Total Cost]
    (c) Use two or more methods to determine the maximum profit and the corresponding selling price. Explain your answers.
    (d) Further, determine the number of the computer components to be manufactured by the company in order to gain maximum profit.
    PART 2
    In year 2009, Warisan RMN made a profit of RM200 000. The company intends to increase its production in year 2010, and therefore needs a substantial amount of money for
    capital
    investment.
    As manager of the company, you have to decide on the amount of loan and the period of the loan to be taken for the purpose mentioned above.
    Table 2 shows part of a monthly repayment schedule for a commercial loan from Bank A:
    (a) Based on Table 2, calculate the total amount of interest incurred for each choice of repayment period and their corresponding amount of loan. Tabulate the values in Table
    3.
    (b) Based on your findings in (a) calculate the average interest rate per month. Tabulate your results and comment on your findings.

    (c) Further, tabulate the amount of yearly repayment for each choice of repayment period up to 5 years for loan amounts from RM10 000 to RM100 000. By observing the total
    annual payment for 12 months, show that the annual payment for loan amount of RM10 000, RM15 000, RM20 000 and so on form a progression.

    (d) The company allocated only 20% of the profit made in the year 2009 on loan repayment period per annum. Assume that the company continues to make an annual profit of
    RM200 000 in the following years.
    (i) Based on your table in (c), determine the maximum amount of loan, in multiples of RM5000, for each choice of repayment period: 1 year, 2 years, 3 years, 4 years and 5
    years.
    (ii) Hence, determine which loan option should the company take, and elaborate on your reasons.

    (e) The company has set aside a reserve fund of RM50 000 in a bank and earns monthly interest beginning 1st January 2010.
    Assuming that the bank gives an annual interest of 2.5%; determine the amount of the reserve fund at the end of each month until 31St December 2010.
    FURTHER EXPLORATION
    Look into other commercial loans or other financial sources available in the market that may be utilized by the company for its capital investment. (Example: Overdraft, Islamic
    Loan) Discuss the advantages and disadvantages of the different types of loans available.

    REFLECTION
    While you were conducting the project, what have you learnt? What moral values did you practise? Represent your opinions or feelings creatively through usage of symbols,
    illustrations, drawings or even in a song.

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