Mathematics form 3 – Chapter 3
Consumer mathematics : saving and
investments, credit and debt
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3.1 saving and investments
Saving definition
• Savings refer to excess money deposited in the safe box, money box or
drawer.
Savings account
• Account holder can save any amount. 储户可按能力存款。
• Interest based on amount and duration. 利息基于存款金额和期限计算。
• Lower interest rates than fixed deposit accounts. 利率低于定期存款账户。
• Withdraw anytime. 可随时提款。
• Use debit card to withdraw via ATM. 可用借记卡通过 ATM 提取存款。
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3.1 saving and investments
Fixed deposit account
• Money saved for a fixed period (e.g., 3 months, 9 months, 1 year). 存款固定期限（如
3 个月、 9 个月或 1 年）。
• Higher interest rates than savings accounts. 利率高于储蓄账户。
• Cannot withdraw before maturity. 不能提前提款。
• Early withdrawal reduces or cancels interest. 提前提款会减少或取消利息。
• Savings certificate issued. 发放储蓄证书。
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3.1 saving and investments
Current account
• Funds in a current account can be used for personal or business purposes. 活
期账户资金可用于个人或商业用途。
• Payments can be made by cheque. 可用支票支付他人。
• Typically, no interest is paid and there are service charges, though some
banks offer interest. 活期账户通常无利息且有服务费，但某些银行会支付利息。
• Applicant needs a referral from an existing current account holder at the
same bank. 申请人需提供同银行现有活期账户持有人的推荐。
• Withdrawals allowed via debit cards, online banking, telephone banking, etc.
除支票外，可用借记卡、网上银行、电话银行等方式提款。
• Account holder can use overdraft facility with interest charges. 账户持有人可使用透支功能，
但需支付利息。
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Example of online banking
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investment
• Definition
• Investment is an alternative step for future returns in the form of current income and
capital gains.
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investment
Shares
• Companies issue shares to raise capital. 公司发行股票筹集资金。
• Shareholders receive returns through dividends and capital gains. 股东通过股息和资本增值获得回报。
Unit Trust
• Trust funds are managed by professional investment managers. 信托基金由专业投资经理管理。
• Unit trust companies pool investor money to invest in potential companies for returns. 单位信托
公司集资投资于潜力公司，以获得投资回报。
Real Estate
• Investments in immovable assets like residential houses, shops, and land. 投资于不动产，如住宅、商铺和
土地。
• Consider economic conditions, rental income potential, location, and future prospects. 房地产投
资需考虑经济状况、租金收益能力、位置和未来前景。 7
Simple interest
• A reward given to depositor at a certain rate on the deposit
amount (principal) for a certain period of times (in years).
Formula
• I = Pr
• Where I is the interest, P is the principal, r is the rate, and is
the time (years).
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Example
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Compound interest
• Interest that is calculated based on the original principal and also the accumulated
interest from the previous period of savings.
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Example
• At the beginning of a year, Encik Ahmad saves RM 10 000 in
his savings account with a rate of 4% per annum and
compounded every 6 months. What is Encik Ahmad’s total
saving at the end of the third year ?
• P = RM 10 000
• r = = 0.04 n=2 =3
• MV = P = 10 000 = 10 000 (1.1262) = RM 11 262
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Islamic banking
• Based on Islamic law (syarak). 基于伊斯兰法律（沙里亚）。
• Risk managed by agreement. 风险按协议管理。
• Principles: justice, halal, profit-sharing, no usury. 原则：公正、合法、利润共享、无利息。
• No fixed early return rate. 无早期固定回报率。
• Actual return rate known at maturity. 到期时实际回报率可知。
Return on investment (ROI)
• Return value per ringgit invested. 每投资一令吉的回报。
• ROI is the ratio of profit or loss from an investment. 投资回报率是收益或损失的比率。
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Mind test 3.1
• 1) Circle the type of investments.
Shares Current Account Savings Account
Unit Trust Bond Real Estate
• 2) Match the following statements with the correct formulae.
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Mind test 3.1
• 3) Calculate the total savings involving simple interest and compound
interest.
• a) Calculate the total saving after 2 years with the initial savings of RM8 000
and the yearly simple interest rate of 2%.
• b) Calculate the matured value for RM15 000 saving for 5 years, with the
interest rate 3.5% per annum, compounded monthly.
• c) Suraya makes a savings of RM5 000 in a bank with the simple interest
rate 2.5% per annum. Calculate her total savings after 10 months.
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3.2 credit and debt management
• Credit is a contractual agreement between the supplier (bank) and the consumer.
• Credit is a postponement of payment facility provided by the supplier to the
consumer.
Advantages of credit Disadvantages of
card credit card
• Credit card holders can • Incur charges such as
enjoy a reward system annual fees, finance
in the form of cash charges (interest),
rebate or point cash advance interest
redemption. charges and late
• Does not require us to payment charges.
carry a lot of cash. • Overspending.
• Easy and efficient • Some stores do not
payment method. accept credit payment.
• Convenience of buying • Debit is an amount
goods and services that has been
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online. borrowed but has not
Flat interest
• The interest rate will be calculated on the original loan amount over the term
of the loan.
• The amount of interest charged per month is fixed.
• Interest on Balance
• The amount of interest charged each month on the loan depends on the
amount of the loan balance of that month.
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Mind test 3.2
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