INSTITUT PERGURUAN TENGKU AMPUAN AFZAN KUALA LIPIS , PAHANG

FIBONACCI SEQUENCE
NAMA PELAJAR : REKHA A/P RAJENDRAN NO K.P : 911203-08-5946 UNIT : PPISMP SEM 1 ( MT / BI / BM ) NAMA MATA PELAJARAN : BASIC MATHEMATICS NAMA PENSYARAH : ENCIK MOHD NAZRI BIN HASSAN TARIKH SERAHAN : 18 SEPTEMBER 2009

ACKNOWLEDGEMENT

First I would like thank my Basic Mathematics lecturer Encik Mohd Nazri Bin Hassan for his help and guideness to complete this task.Without his help I will not be able to complete this task because he cleared all my doubts throughout completion of this task. Next , I would like to thank all my friends who had helped me to finish my task.Without their cooperation I would have never been able to finish my task. Lastly I would like to thank my parents who supported me throughout I was doing this task.Their support made me to complete my task on time. Thank You.

CONTENTS
1. INTRODUCTION 2. TASK QUESTIONS 3. PART A i) Fibonacci Sequence ii) Creations in Nature 4. PART B i) Interest ii) Simple Interest iii) Compound Interest 5. PART C i) Reflection 6.BIBLIOGRAPHY

INTRODUCTION
In this Basic Mathematics assignment we were asked to do about Fibonacci Sequence and Interest.For part A,we were supposed to gather information about Fibonacci sequence from multiple resources.Then we have to give three examples of creations in nature involving Fibonacci sequence.We also have to elaborate how the number patterns can be seen in the creations.After that I have to write essay about Fibonacci sequence which includes my discoveries. In part B,we have to access information about interest.Then we have to make notes about simple interest,calculating simple interest and compound interest.We must also learn how to use compound interest formula.After all that,we have to discuss in group to complete six questions involving interest in attachment 1. After completing part A and part B,we have to write reflection at the end.It is about what we have gained throughout the completing of this task.

TASK QUESTIONS

Task A

Fibonacci Sequence

A Fibonacci spiral created by drawing arcs connecting the opposite corners of squares in the Fibonacci tiling; this one uses squares of sizes 1, 1, 2, 3, 5, 8, 13, 21, and 34; The Fibonacci sequence in sound, starting with harmonic intervals going up, and melodic intervals going down. In mathematics, the Fibonacci numbers are the following sequence of numbers:

By definition, the first two Fibonacci numbers are 0 and 1, and each remaining number is the sum of the previous two. Some sources omit the initial 0, instead beginning the sequence with two 1s. In mathematical terms, the sequence Fn of Fibonacci numbers is defined by the recurrence relation

with seed values

The Fibonacci sequence is named after Leonardo of Pisa, who was known as Fibonacci (a contraction of filius Bonaccio, "son of Bonaccio".) Fibonacci's 1202 book Liber Abaci introduced the sequence to Western European mathematics, although the sequence had been previously described in Indian mathematics. The Fibonacci sequence makes its appearance in other ways within mathematics as well. For example, it appears as sums of oblique diagonals in Pascals triangle:

The shallow diagonals" of Pascal's triangle sum to Fibonacci numbers

Origins
The Fibonacci sequence was well known in ancient India, where it was applied to the metrical sciences (prosody), long before it was known in Europe. Developments have been attributed to Pingala (200 BC), Virahanka (6th century AD), Gopla (c.1135 AD), and Hemachandra (c.1150 AD). The Fibonacci sequence is formed by adding S to a pattern of length n 1, or L to a pattern of length n 2; and the prosodicists showed that the number of patterns of length n is the sum of the two previous numbers in the sequence. Donald Knuth reviews this work in The Art of Computer Programming. In the West, the sequence was studied by Leonardo of Pisa, known as Fibonacci, in his Liber Abaci (1202). He considers the growth of an idealised (biologically unrealistic) rabbit population, assuming that:

In the "zeroth" month, there is one pair of rabbits (additional pairs of rabbits = 0).

In the first month, the first pair begets another pair (additional pairs of rabbits = 1).

In the second month, both pairs of rabbits have another pair, and the first pair dies (additional pairs of rabbits = 1).

In the third month, the second pair and the new two pairs have a total of three new pairs, and the older second pair dies (additional pairs of rabbits = 2). The laws of this are that each pair of rabbits has 2 pairs in its lifetime, and dies.

Let the population at month n be F (n). At this time, only rabbits who were alive at month n 2 are fertile and produce offspring, so F(n 2) pairs are added to the current population of F(n 1). Thus the total is F(n) = F(n 1) + F(n 2).

Fibonacci numbers in nature

Fibonacci sequences appear in biological settings, in two consecutive Fibonacci numbers, such as branching in trees, arrangement of leaves on a stem, the fruitlets of a pineapple, the flowering of artichoke, an uncurling fern and the arrangement of a pine cone. Sunflower head displaying florets in spirals of 34 and 55 around the outside.Przemysaw Prusinkiewicz advanced the idea that real instances can be in part understood as the expression of certain algebraic constraints on free groups, specifically as certain Lindenmayer grammars. A model for the pattern of florets in the head of a sunflower was proposed by H. Vogel in 1979. This has the form

where n is the index number of the floret and c is a constant scaling factor; the florets thus lie on Fermat's spiral. The divergence angle, approximately 137.51, is the golden angle, dividing the circle in the golden ratio. Because this ratio is irrational, no floret has a neighbor at exactly the same angle from the center, so the florets pack efficiently. Because the rational approximations to the golden ratio are of the form F(j):F(j + 1), the nearest neighbors of floret number n are those at n F(j) for some index j which depends on r, the distance from the center. It is often said that sunflowers and similar arrangements have 55 spirals in one direction and 89 in the other (or some other pair of adjacent Fibonacci numbers), but this is true only of one range of radii, typically the outermost and thus most conspicuous.

Honeybees

There are over 30,000 species of bees and in most of them the bees live solitary lives. First, some unusual facts about honeybees such as: not all of them have two parents! In a colony of honeybees there is one special female called the queen. There are many worker bees who are female too but unlike the queen bee, they produce no eggs. There are some drone bees who are male and do no work. Males are produced by the queen's unfertilised eggs, so male bees only have a mother but no father! All the females are produced when the queen has mated with a male and so have two parents. Females usually end up as worker bees but some are fed with a special substance called royal jelly which makes them grow into queens ready to go off to start a new colony when the bees form a swarm and leave their home (a hive) in search of a place to build a new nest. So female bees have 2 parents, a male and a female whereas male bees have just one parent, a female.

Nautilus Shell

The curve of this shell is called Equiangular or Logarithmic spirals and are common in nature, though the 'growth factor' may not always be the golden ratio. Above are images of cross-sections of a Nautilus sea shell. They show the spiral curve of the shell and the internal chambers that the animal using it adds on as it grows. The chambers provide buoyancy in the water. Draw a line from the centre out in any direction and find two places where the shell crosses it so that the shell spiral has gone round just once between them. The outer crossing point will be about 1.6 times as far from the centre as the next inner point on the line where the shell crosses it. This shows that the shell has grown by a factor of the golden ratio in one turn.

Leaves arrangements
Also, many plants show the Fibonacci numbers in the arrangements of the leaves around their stems. If we look down on a plant, the leaves are often arranged so that leaves above do not hide leaves below. This means that each gets a good share of the sunlight and catches the most rain to channel down to the roots as it runs down the leaf to the stem.The Fibonacci numbers occur when counting both the number of times we go around the stem, going from leaf to leaf, as well as counting the leaves we meet until we encounter a leaf directly above the starting one. If we count in the other direction, we get a different number of turns for the same number of leaves. The number of turns in each direction and the number of leaves met are three consecutive Fibonacci numbers!

TASK B

Interest
Interest is a fee paid on borrowed assets. It is the price paid for the use of borrowed money, or, money earned by deposited funds. Assets that are sometimes lent with interest include money, shares, consumer goods through hire purchase, major assets such as aircraft, and even entire factories in finance lease arrangements. The interest is calculated upon the value of the assets in the same manner as upon money. Interest can be thought of as "rent of money". For example, if you want to borrow money from the bank, there is a certain rate you have to pay according to how much you want loaned to you. Interest is compensation to the lender for forgoing other useful investments that could have been made with the loaned asset. These forgone investments are known as the opportunity cost. Instead of the lender using the assets directly, they are advanced to the borrower. The borrower then enjoys the benefit of using the assets ahead of the effort required to obtain them, while the lender enjoys the benefit of the fee paid by the borrower for the privilege. The amount lent, or the value of the assets lent, is called the principal. This principal value is held by the borrower on credit. Interest is therefore the price of credit, not the price of money as it is commonly believed to be. The percentage of the principal that is paid as a fee (the interest), over a certain period of time, is called the interest rate.

Simple interest
Simple interest is calculated only on the principal amount, or on that portion of the principal amount which remains unpaid. The amount of simple interest is calculated according to the following formula:

r - period interest rate (I/m) B0 - the initial balance and m the number of time periods elapsed. To calculate the period interest rate r, one divides the interest rate I by the number of periods m. For example, imagine that a credit card holder has an outstanding balance of $2500 and that the simple interest rate is 12.99% per annum. The interest added at the end of 3 months would be,

and he would have to pay $2581.19 to pay off the balance at this point. If instead he makes interest-only payments for each of those 3 months at the period rate r, the amount of interest paid would be,

His balance at the end of 3 months would still be $2500.

In this case, the time value of money is not factored in. The steady payments have an additional cost that needs to be considered when comparing loans. For example, given a $100 principal:

Credit card debt where $1/day is charged: 1/100 = 1%/day = 7%/week = 365%/year.

Corporate bond where the first $3 are due after six months, and the second $3 are due at the year's end: (3+3)/100 = 6%/year.

Certificate of deposit (GIC) where $6 is paid at the year's end: 6/100 = 6%/year.

There are two complications involved when comparing different simple interest bearing offers. 1. When rates are the same but the periods are different a direct comparison is inaccurate because of the time value of money. Paying $3 every six months costs more than $6 paid at year end so, the 6% bond cannot be 'equated' to the 6% GIC. 2. When interest is due, but not paid, does it remain 'interest payable', like the bond's $3 payment after six months or, will it be added to the balance due? In the latter case it is no longer simple interest, but compound interest. A bank account offering only simple interest and from which money can freely be withdrawn is unlikely, since withdrawing money and immediately depositing it again would be advantageous. Example: Alan borrowed RM10,000 from the bank to purchase a car. He agreed to repay the amount in 8 months, plus simple interest at an interest rate of 10% per annum (year).If he repays the full amount of RM10,000 in eight months, the interest would be: P = RM 10,000 r = 0.10 (10% per year) t = 8/12 (this denotes fraction of a year) Applying the above formula, interest would be I = RM 10,000(0.10)(8/12) = RM 667 If he repays the amount of $10,000 in fifteen months, the only change is with time. Therefore, his interest would be: I = RM 10,000 (0.10)(15/12) = RM 1,250

Compound interest
Compound interest is very similar to simple interest; however, with time, the difference becomes considerably larger. This difference is because unpaid interest is added to the balance due. Put another way, the borrower is charged interest on previous interest. Assuming that no part of the principal or subsequent interest has been paid, the debt is calculated by the following formulas:

where Icomp is the compound interest, B0 the initial balance, Bn the balance after n periods (where n is not necessarily an integer) and r the period rate. For example, if the credit card holder above chose not to make any payments, the interest would accumulate

So, at the end of 3 months the credit card holder's balance would be $2582.07 and he would now have to pay $82.07 to get it down to the initial balance. Simple interest is approximately the same as compound interest over short periods of time, so

frequent payments are the best (least expensive) payment strategy. A problem with compound interest is that the resulting obligation can be difficult to interpret. To simplify this problem, a common convention in economics is to disclose the interest rate as though the term were one year, with annual compounding, yielding the effective interest rate. However, interest rates in lending are often quoted as nominal interest rates (i.e., compounding interest uncorrected for the frequency of compounding). Loans often include various non-interest charges and fees. One example are points on a mortgage loan in the United States. When such fees are present, lenders are regularly required to provide information on the 'true' cost of finance, often expressed as an annual percentage rate (APR). The APR attempts to express the total cost of a loan as an interest rate after including the additional fees and expenses, although details may vary by jurisdiction. In economics, continuous compounding is often used due to its particular mathematical properties.

Attachment 1 1. Your deposite RM 2000 in a saving account in Raya Bank , which has rate of 6% i) Find the amount of money in the account after 3 years subject to the compound interest. A = P( 1 + r ) p amount deposited r interest rate A = 2000( 1 + 0.06 ) =RM 2382.03 ii) Find the interest Interest = p r t p amount deposited r interest rate t - time I = 2000 0.06 3 = RM 360 2. Your deposite RM 7500 in a saving account that has a rate of 6%.The interest is compounded monthly

i)

How much money will you have after five years? A=P( 1 +

)n

p amount deposited r interest rate n number of months m month in a year

A = RM 7500 ( 1 +

= RM 7500 ( 1 + 0.005 ) = RM 7500 ( 1.34885 ) = RM 10 116.37 ii) Find the interest after five years

Interest= p r t

p principal r - interest rate t time

I = RM 7500 0.06 5 = Rm 2 250 3. Which is the better choice : an 8.25% rate compounded quarterly , or an 8.3% rate compounded semiannually? Interest rate per period = Year interest rate No of time a year interest in compound i) 8.25% = 0.0825 4 = 0.020625 ii) 8.3 % = 0.083 2 = 0.0415 Let say we have Rm1000 in our accounts,by using both of the rate above , which is better choice ? A= P ( 1 +

)n

p amount deposited r interest rate n number of months m month in a year

4

i)

A = 1000 ( 1 + 0.020625 ) = 1000 ( 1.020625 ) = 1000 (1.08509) = RM 1 085.09

4

ii)

A = 1000 ( 1 + 0.0415 ) = 1000 ( 1.0415 ) = 1000 ( 1.0847 ) = Rm 1 084.72

2

8.25% is a better choice even though there is not much different

4. How much money should be deposited in a account today that earns 8% compounded monthly so that it will have accumulate to RM 20 000 in five years to pay for a car? =P(1+

)n

p amount deposited r interest rate n number of months m month in a year

RM 20 000 = x ( 1 + 0.08/12 )60 = x ( 1+0.00667 ) = x ( 1.00667 ) = x ( 1.490 ) x= RM 20 000 1.490 X= RM 13 422.82

5. A 30 year old worker plans to retire at age 65.He believed that RM 500 000 is needed to retire comfortably.How much should be deposited now at 000 retirement goal ?

9%compounded monthly to meet the RM 500 A= P ( 1 +

)n

p amount deposited r interest rate n number of months m month in a year

RM 500 000 = x ( 1 +

) 420

= x ( 1 + 0.0075 )420 = x ( 1.0075 )420 = x ( 23.0634) X = RM500 000 23.0634 = RM 21 679.37

6. You decide to purchase a second hand Iswara Aeroback Model 1999 that costs RM 9345. You can finance the Iswara Aeroback by paying RM 300 at the time purchase , called the downpayment , and RM 194.38 per month for 60 months.A lone like this that has a schedule for paying a fixed amount each period is called a fixed installment loan.

i)

Determine the amount financed A = car cost downpayment = RM 9345 RM 300 = RM 9045

ii)

Determine the total installment price A = Monthly payment number of months = RM 194.38 60 = RM 11 662.80

iii)

Determine the finance charge A = amount financed ( car cost downpayment ) = RM 11 662.80 ( RM 9 345 RM 300 ) = RM 11 662.80 RM 9045 = RM 2 617.80

TASK

C
Reflection.

First I would like to thank Basic Mathematics lecturer En Mohd Nazri Bin Hassan who gave me guidelines to complete my task about Fibonacci sequence and Interest and also my parents who helped me a lot to complete this tasks.Not forgetting my friends who lend their helping hand while I was doing this task. My assignment for Basic Mathematics was about Fibonacci Sequence and interest.While doing this topic I was able 2 learn about how numbers are created and be related to the creations on earth such as leaves arrangement,nautilus shell and bees. I was able to learn Pascals Triangle which was an intresting way of number patterns.This task had helped me to improve myself in many ways.For example,I learned how to gather information from various resources and used it for my task. This task also made me to understand about interest rates that are used in our daily life.Interest are divided into two which is simple interest and compound interest.My knowledge about interest will be helpful in future as I will be a teacher. In this task I was asked to do group discussion for attachment 1.There was 6 questions involving topic interest and me n my friends did all of these questions together.We discuss about each and every question before solving the mathematics questions. By this way we understand better the topic we were researching.The group discussion helped me to learn about team work and cooperations.Throughout this task I have enjoyed the experience of completing this assignment and the process of learning new things.

Bibliography

Thomas

L,Pimot,(2007),Mathematics

All

Around

4th

Edition,Kutztown

University Of Pennsylvania:Addison-Wesley,Pearson Education,Inc. Charles D.Miller,John H,Mangeret L.Morrow,Jill V,(2002),Mathematical IdeasExpanded Addison. Randall C,Thomas C,John D,Jane S,Phares ODaffer,(2002),Mathematics for Elementary School Teachers,Boston San Fransisco:Grey Tobin,Pearson Addison. Tenth Edition,Boston San Francisco:Grey Tobin,Pearson

WEBSITES http://en.wikipedia.org/wiki/Fibonacci_sequence http://en.wikipedia.org/wiki/Fibonacci http://en.wikipedia.org/wiki/Interest http://library.thinkquest.org/27890/applications5.html http://www.mcs.surrey.ac.uk/Personal/R.Knott/Fibonacci/fibnat.html http://en.wikipedia.org/wiki/Compound_interest http://www.easycalculation.com/compound-interest.php