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Mr Ali has been saving RM650 every month in ABC Bank for the past 6 years. On the other hand, Ms Siti has been saving RM500 every month in PQR Bank for the past 5 years since she started to work and she also has a fixed deposit of RM10,000 in the same bank for the past 4 years.
(a) Mr Ali and Ms Siti plan to buy a bungalow together worth RM1,200,000 located in Damansara with a 10% down payment towards financing the house.
(b) Find Ali's accumulated savings in ABC Bank if the bank offers him an interest of 5% compounded monthly for the first 3 years and 2% compounded monthly for the rest of the period and determine Siti's accumulated savings in PQR Bank if the bank offers her an interest rate of 3.56% compounded monthly for both of her savings.
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