Reference no: EM132860378

Question - (a) Zayd invested RM7,000 in Bank A three years ago. The bank pays 8% simple interest per annum. He decided to withdraw all the money accumulated in that bank and invest in Bank Z that gives 5% interest compounded quarterly. He plans to keep the money for 4 years in Bank Z. Calculate the accumulated amount at the end of the fourth year.

(b) Sofea plans to buy a condominium when she graduates from Saffon College three years from now. The condo's selling price is expected to be RM240,000 in three years' time and she will need 10% of the selling price as a deposit to book the condo.

If she puts RM6,000 now in an account that yields 15% interest compounded semi-annually, how much more would she need to deposit soon after she has graduates?

(c) Sivaji had just inherited RM120,000 from his millionaire uncle who passed away recently. He plans to invest in three different banks for a period of 2 years.

(i) Apple Bank pays 6% interest compounded daily.

(ii) Manggo Bank pays 5% interest compounded quarterly.

(iii) Singa Bank pays 7% simple interest per annum.

Advise Sivaji in which bank he should invest his money.