EN
Book a Trial Class

Consumer Mathematics: Financial Management · Form 4

Consumer Mathematics: Financial Management: Worked Examples (Medium)

Two- and three-step questions: rearranging I = Prt to find a rate, comparing a simple-interest account with a compound-interest one, and best-buy problems that need a unit change or a discount first. Builds the working habits examiners look for.

General information only, not financial advice.

Written by the spmmath.com.my editorial team.

Worked example 1

Encik Daud saves RM3 000 in an account that pays simple interest. After 3 years the interest earned is RM360.

Find the yearly interest rate, then state the total amount in the account.

  1. Write I = Prt with I = 360, P = 3 000, t = 3; the unknown is r.
  2. Rearrange for r: r = I ÷ (P × t) = 360 ÷ (3 000 × 3).
  3. Compute the bracket then divide: 3 000 × 3 = 9 000, so r = 360 ÷ 9 000 = 0.04.
  4. Change to percentage: 0.04 × 100% = 4% per year.
  5. Total amount = principal + interest = 3 000 + 360 = 3 360.

Worked example 2

Two banks offer RM2 000 savings for 3 years. Bank A pays simple interest at 5% per year.

Bank B pays compound interest, MV = P(1 + r)n, at 5% per year. Find the maturity value in each bank and state which is higher, and by how much.

  1. Bank A interest: I = Prt = 2 000 × 0.05 × 3 = 300.
  2. Bank A maturity value = 2 000 + 300 = RM2 300.
  3. Bank B: MV = 2 000 × (1.05)3; first (1.05)3 = 1.157625.
  4. Bank B maturity value = 2 000 × 1.157625 = RM2 315.25.
  5. Difference = 2 315.25 − 2 300 = 15.25, and Bank B is higher.

Worked example 3

A canteen compares two packs of the same juice. Pack A: 6 bottles of 320 ml for RM8.40.

Pack B: 10 bottles of 320 ml priced RM13.50, now with 10% off. Find the price per litre of each pack (to the nearest sen) and choose the better buy.

  1. Pack A volume: 6 × 320 ml = 1 920 ml = 1.92 L.
  2. Pack A price per litre = RM8.40 ÷ 1.92 = RM4.375 ≈ RM4.38 per L.
  3. Pack B price after discount = RM13.50 × (1 − 0.10) = RM13.50 × 0.9 = RM12.15.
  4. Pack B volume: 10 × 320 ml = 3 200 ml = 3.2 L.
  5. Pack B price per litre = RM12.15 ÷ 3.2 = RM3.796875 ≈ RM3.80 per L.
  6. Compare: RM3.80 < RM4.38, so Pack B is cheaper per litre.

Worked example 4

The simple interest earned on a sum of money after 4 years at 3% per year is RM480. Find the principal and the total amount at the end of 4 years.

  1. Simple interest formula: I = P × r × t, so 480 = P × 0.03 × 4.
  2. Simplify: 480 = 0.12P.
  3. Principal: P = 480 ÷ 0.12 = 4000.
  4. Total amount: 4000 + 480 = 4400.

Worked example 5

RM5000 is invested at 6% per year compound interest for 3 years. Find the interest earned, correct to the nearest sen.

  1. Amount formula: A = P(1 + r)ⁿ = 5000(1.06)³.
  2. (1.06)³ = 1.191016.
  3. A = 5000 × 1.191016 = 5955.08.
  4. Interest = A − P = 5955.08 − 5000 = 955.08.

Worked example 6

Shop A sells 2 kg of rice for RM13.50. Shop B sells 5 kg of rice for RM32.00 with a 10% discount at the counter.

Find the price per kg at each shop and state which shop is cheaper.

  1. Shop A price per kg: RM13.50 ÷ 2 = RM6.75.
  2. Shop B price after discount: RM32.00 × (100% − 10%) = 32 × 0.90 = RM28.80.
  3. Shop B price per kg: RM28.80 ÷ 5 = RM5.76.
  4. Compare: RM5.76 < RM6.75.

Worked example 7

The simple interest earned on RM2 400 invested at 3.6% per year is RM259.20. Find the number of years the money was invested, then state the total amount at the end of that period.

  1. Write the simple interest formula: I = Prt.
  2. Substitute I = 259.20, P = 2 400, r = 0.036: 259.20 = 2 400 × 0.036 × t.
  3. 2 400 × 0.036 = 86.4, so 259.20 = 86.4t.
  4. t = 259.20 ÷ 86.4 = 3 years.
  5. Total amount = 2 400 + 259.20 = RM2 659.20.

Worked example 8

A stationery shop sells notebooks in two deals. Deal A: 3 notebooks for RM10.50.

Deal B: a pack of 5 notebooks priced at RM19.00, with a promotion giving RM3 off the pack. Find the price per notebook for each deal and state which deal is the better buy.

  1. Deal A price per notebook = 10.50 ÷ 3 = RM3.50.
  2. Deal B price after the promotion = 19.00 − 3.00 = RM16.00.
  3. Deal B price per notebook = 16.00 ÷ 5 = RM3.20.
  4. Compare: RM3.20 < RM3.50, so Deal B is the better buy.

Source:DSKP KSSM Mathematics Form 4 and 5 (Versi English)

Book a Trial ClassOne-hour paid trial · Same-day reply · from RM50/hr

Frequently asked questions

What kind of questions appear at the medium level for financial management?

Medium questions combine several steps, like completing a full cash-flow table across multiple months, or comparing two savings or loan options using compound interest over several periods. You may also need to work backwards, finding the principal or rate when the final amount is given.

What does the examiner reward in a medium-level financial-management answer?

Marks are given for each correct step of substitution shown clearly, not just the final figure, so write out the formula, the substituted values, and the calculation separately. Money answers should stay in a consistent format throughout, and intermediate values should not be rounded too early.

What's a common pitfall in medium financial-management questions?

A frequent mistake is rounding money values too early in a multi-step calculation, which throws off the final answer. Another is misreading whether a question wants simple or compound interest, or confusing total income/expense with net cash flow when several transactions are listed.

Book a Trial Class

Book a Trial Class
One-hour paid trial · Same-day replyfrom RM50/hr
Book a Trial Class