Question: i need answer for question 1(b) and 1(c) only QUESTION 1 (25 MARKS) (a) Ridzuan is a finance student at a college. Recently, he has

i need answer for question 1(b) and 1(c) only

i need answer for question 1(b) and 1(c) only QUESTION 1 (25

QUESTION 1 (25 MARKS) (a) Ridzuan is a finance student at a college. Recently, he has won RM 15,000 from a competition. He needs your advice on his investment options: Option A: Invest in a fund that pays 8% simple interest for 2 years. Option B: Invest in a fund that pays 6% compounded semi-annually for 2 years. Option : Invest in a fund that pays 3% compounded fortnightly for 2 years. You are required to calculate the accumulated sum from each option and to advice Ridzuan on the best option available. (9 marks) (b) If Ms Chan is thinking of putting RM10,000 into the saving accounts at the end of each year for 10 years, what sum can she accumulate at an interest rate of 8% interest computed on a yearly basis? (3 marks) (c) A motor vehicle which costs RM20,000 was bought on credit terms, with payment of 10% as deposit to be made immediately and the balance to be paid in one lump sum 6 months later. (1) Calculate the total amount of interest expense if the compound interest rate is 2% per month (4 marks) (ii) With loan amortization schedule, show the total amount be paid for the vehicle. (9 marks)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!