QUESTION$/$ SOALAN

$($a$)$ Michael borrowed RM$420,000$ to buy an apartment in Damansara. His loan cost was $6\%$ and he promised to repay the loan in $30$ equal annual payments. How much is the principal outstanding after

the first loan payment?

$($b$)$ Angela plans to save RM$1,300$ at the end of year $1,$ RM$2,000$ at the end of year $2,$ and RM$3,000$ at the end of year $3.$ Calculate the future value of her savings at the end of year $3,$ given an interest rate

of $10\%.$

$($c$)$ Explain the differences between compounding and discounting by providing appropriate examples.