Diana plans to buy a house in 10 years. Currently the house is priced at RM 200,000 and it is the predictions of realtor that the price of the house will increase constantly at a rate of 5%. She has to pay 10% deposit of the house price.

1. Calculate the amount of deposit that she must save to purchase the house.

(2 marks)

2. How much must she save annually to be able to pay for that deposit in a saving account that pays 8%?

Answer rating: 100% (QA)

1 DEPOSIT required 32577725 a... View the full answer