Question: 19. Mariam can save her money either at 9% compounded quarterly in Bank P or at 8.5% compounded monthly in Bank Q. a. Find the

19. Mariam can save her money either at 9% compounded quarterly in Bank P or at 8.5%

compounded monthly in Bank Q.

a. Find the effective rate for each of the nominal rates. [ans:8.84%

b. Which rate yields more interest?

20. Abdullah can invest his money either in Fund A that gives 9% interest compounded quarterly or in Fund B that gives 9% simple interest per year. If Abdullah wishes to invest

RM50,000 for one year, which fund do you suggest him to invest in? Show your calculation. [ans:Fund A : S = RM54654.17, Fund B : S = RM54500]

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