Question: Please provide the full solution, thank you! Question 3 (a) Rashidah intends to buy a motorcycle for his son, Ahmad, on his 20th birthday 4

 Please provide the full solution, thank you! Question 3 (a) Rashidah

Please provide the full solution, thank you!

Question 3 (a) Rashidah intends to buy a motorcycle for his son, Ahmad, on his 20th birthday 4 years from now Based on her survey, the price of motorcycle is approximately at RM8,000. She plans to start save money in the savings account that pays 4 percent interest annually. Compute how much should she deposit today to buy the motorcycle (5 marks) (b) Aminah plans to buy a house in Shah Alam which the market price is RM450,000. To buy the house, she needs to pay 10 percent down payment and only has 5 years to accumulate that amount of money. Calculate the amount she needs to deposit every year if the account pays 8 percent interest annually. (6 marks) (c) Tirana Berhad need short term financing to buy a new machine cost around RM350,000. The company get offer from two banks: Option 1: RHB Bank offers 85 percent financing with 6 percent simple interest loan with 10 percent compensating balance Option 2. CIMB Bank offers 90 percent financing with 8 percent discount interest loan without compensating balance Based on above information, determine which offer that Tirana Berhad should choose and state your reason (10 marks) (d) Short term financing is financing that a borrowers pay off over shorter payment period. Small businesses depend on short term finance to continue operations through economic downturns. Describe the advantages of short-term loans (4 marks) [25 Mark)

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