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Consumer Mathematics: Financial Management · Form 4

Consumer Mathematics: Financial Management: Practice Questions

Original SPM-style practice questions for Consumer Mathematics: Financial Management, each with full worked solutions, Paper 1 multiple-choice and Paper 2 structured.

Written by the spmmath.com.my editorial team.

Original practice questions for Consumer Mathematics: Financial Management, in the style of Mathematics Paper 1 (Objective) and Mathematics Paper 2 (Subjective). Each answer is worked so you can check your method, not just the result.

Multiple-choice (Paper 1 style)

Question 1

Aisyah deposits RM2000 in an account paying simple interest at 3.5% per annum. Find the interest earned after 3 years.

  1. A. RM70
  2. B. RM210
  3. C. RM630
  4. D. RM105

Question 2

RM1500 is invested at 4% per annum compound interest for 2 years. Find the interest earned.

  1. A. RM120.00
  2. B. RM122.40
  3. C. RM1622.40
  4. D. RM124.86

Question 3

Brand A rice: 900 g for RM12.60. Brand B rice: 500 g for RM8.50.

Which brand is the better buy (lower price per gram)?

  1. A. Brand A
  2. B. Brand B
  3. C. Both the same
  4. D. Cannot be determined

Question 4

A principal of RM1200 earns RM192 in simple interest over 4 years. Find the annual interest rate.

  1. A. 3%
  2. B. 4%
  3. C. 5%
  4. D. 8%

Question 5

RM800 is saved at 5% per annum compound interest for 3 years. Find the total amount at the end of 3 years.

  1. A. RM920.00
  2. B. RM926.10
  3. C. RM926.00
  4. D. RM924.00

Question 6

A backpack priced at RM250 is sold with a 15% discount. Find the selling price after the discount.

  1. A. RM235.00
  2. B. RM212.50
  3. C. RM37.50
  4. D. RM215.00

Question 7

RM5000 is deposited at 2.8% per annum simple interest for 5 years. Find the total amount (principal plus interest).

  1. A. RM700
  2. B. RM5700
  3. C. RM5140
  4. D. RM6400

Question 8

Pack X juice: 4 litres for RM9.60. Pack Y juice: 3 litres for RM7.50.

Which pack gives the lower price per litre?

  1. A. Pack X
  2. B. Pack Y
  3. C. Both the same
  4. D. More information needed

Question 9

RM2500 is invested at 3% per annum compound interest for 2 years. Find the interest earned.

  1. A. RM150.00
  2. B. RM152.25
  3. C. RM2652.25
  4. D. RM75.00

Question 10

A sum of money earns RM360 in simple interest at 6% per annum over 2 years. Find the principal.

  1. A. RM3000
  2. B. RM6000
  3. C. RM300
  4. D. RM1000

Structured (Paper 2 style)

Question 1 (4 marks)

Rahman deposits RM4000 into a savings account that pays simple interest at 3.5% per annum. (a) Calculate the interest earned after 4 years.

(b) Find the total amount in the account at the end of 4 years.

  1. Write the simple interest formula: I = Prt, with P = 4000, r = 0.035, t = 4.
  2. (a) I = 4000 × 0.035 × 4 = RM560.
  3. (b) Total amount = principal + interest = 4000 + 560 = RM4560.

Question 2 (7 marks)

Siti invests RM6000 at 4% per annum compound interest for 3 years. (a) Calculate the total amount at the end of 3 years.

(b) State the compound interest earned. (c) If the same money had earned simple interest at 4% per annum for 3 years instead, how much more interest does the compound investment give?

  1. (a) Compound amount A = P(1 + r)n = 6000(1.04)³ = 6000 × 1.124864 = RM6749.18.
  2. (b) Compound interest = A − P = 6749.18 − 6000 = RM749.18.
  3. (c) Simple interest = Prt = 6000 × 0.04 × 3 = RM720.
  4. Difference = 749.18 − 720 = RM29.18 more from the compound investment.

Question 3 (5 marks)

A shop sells cooking oil in two brands. Brand P: 1200 g for RM15.00.

Brand Q: 500 g for RM6.75. (a) Calculate the price per gram for each brand.

(b) State which brand is the better buy. (c) Using the cheaper brand, find the cost of buying 2 kg of cooking oil.

  1. (a) Brand P: 15.00 ÷ 1200 = RM0.0125 per g; Brand Q: 6.75 ÷ 500 = RM0.0135 per g.
  2. (b) Since RM0.0125 < RM0.0135, Brand P is the better buy.
  3. (c) 2 kg = 2000 g; cost = 2000 × 0.0125 = RM25.00.

Question 4 (6 marks)

Farid keeps RM10 000 in a fixed deposit that pays 3% per annum compound interest for 2 years. (a) Calculate the total amount at the end of 2 years.

(b) Find the compound interest earned. (c) A friend keeps the same RM10 000 at 3% per annum simple interest for 2 years.

Determine how much more interest Farid earns than his friend.

  1. (a) A = P(1 + r)n = 10000(1.03)² = 10000 × 1.0609 = RM10 609.00.
  2. (b) Compound interest = 10 609.00 − 10 000 = RM609.00.
  3. (c) Simple interest = Prt = 10000 × 0.03 × 2 = RM600.00.
  4. Difference = 609.00 − 600.00 = RM9.00 more for Farid.

Source:SPM: Format Pentaksiran mulai 2021, Matematik (1449)

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Frequently asked questions

How is this practice set organised between Paper 1 and Paper 2?

Paper 1 questions are multiple-choice, testing quick calculations such as interest, instalments, or savings growth. Paper 2 questions are structured, often a multi-part scenario about budgeting, loan repayment, or comparing savings plans, where you must show each step of the financial calculation clearly.

Why attempt the financial management questions before checking the solution?

Financial questions often hide the tricky part in reading the scenario correctly, which rate applies, over what period, or what is being compared. Working it out yourself first shows whether your setup was wrong before you calculate, which the answer alone will not reveal.

What common pitfalls appear in consumer mathematics financial management questions?

Students often mix up simple and compound growth, apply an annual rate to a monthly period without converting it, or forget to account for fees and charges stated in the question. Rounding too early in a multi-step calculation is another common cause of a wrong final answer.

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