Assignment Questions (Compulsory to answer both case studies) Case Study One Diane graduated from Taylor's University with Diploma in Business and joined an international investment bank as an Analyst Assistant. She has been working for few years and earnings RM48,000 per annum. She would like to save some of her money for future usage. Among the options are fixed deposit account and bond. Fixed Deposit Account After doing some research, she has shortlisted her choices to invest in either one of these banks; Maybank (Islamic Fixed Deposit - i), CIMB Bank (Unfixed Deposit) or Bank Simpanan Nasional, BSN (Term Deposit). You are required to do analysis for these three banks' fixed deposit accounts and advice Diane on her investment if: a) she deposits RM12,000 today and hold for three years; b) she deposits RM12,000 every year for three years; c) she deposits RM3,000 for the first year, RM4,000 for the second year and RM5,000 for the third year. *Note: Assume investment to be hold until three years and all deposits at the beginning of the year. The calculations are right here:

BSN Term Deposit

FV=PV(1+r)^t

First Year = RM12,000(1+0.0335)²

=RM 12,000(1.0335)²

=RM 12817.47

Second Year = RM 12,000(1+0.345)¹

=RM 12,000(1.0335)¹

=RM 12,414

Third Year= RM12,000

Total FV=RM12,817.47+ RM12,414+RM12,000

=RM 37,231.47

CIMB BANK(Unfixed deposit)

FV=PV(1+r)^t

First Year = RM 12,000(1+0.031)²

=RM 12,000(1.031)²

= RM 12,755.54

=RM 12,755.53

Second Year = RM 12,000(1+0.031)¹

= RM12,000(1.031)¹

=RM 12,372

Year 3= RM12,000

Total FV= RM 12,755.53+RM12,372+RM12,000

=RM 37,127.53

Save RM12,000 every year and for three whole years

Maybank (Islamic Fixed Deposit)

i)

FV=PV(1+r)^t

Year 1 = RM 12,000(1+0.031)²

=RM 12,000(1+0.31)²

=RM 12,755.53

Year 2 =RM 12,000(1+0.031)¹

=RM 12,000(1.031)¹

=RM 12,372

Year3 =RM 12,372

Total FV= RM 12,755.53 + RM 12,372 + RM 12000)

=RM 37,127.53

CIMB BANK(Unfixed Deposit)

FV=PV(1+r)^t

FV=RM12,000(1+0.032)³

FV=RM12,000(1.032)³

FV=RM13,189.26

Bank Simpanan National, BSN (Team Deposit)

FV=PV(1+r)^t

FV=RM12,000(1+0.035)³

FV=RM12,000(1.035)³

FV=RM 13,246.26

Save RM12,000 and holds for three years

Maybank(Islamic Fixed Deposit-i)

FV=PV(1+r)^t

FV=RM12,000(1+0.0315)³

FV=RM12,000(1.0315)³

FV= RM13,170.10

CIMB Bank (Unfixed Deposit)

FV=PV(1+r)^t

FV=RM12,000 (1+0.032)³

FV=RM12,000(1.032)³

FV=RM 13,189.26