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Assignment Chapter 5

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7 views1 page

Assignment Chapter 5

Uploaded by

hakimstars2003
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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ASSIGNMENT CHAPTER 6

1. Sarimah deposited RM2,800 in an account when he was 15 years old. The simple interest
rate offered was 4.2% per annum. Find the simple interest earned when he is 21 years old.
2. A sum of money, X ringgit was deposited in a savings account at 8% compounded daily on 25
July 2012. On 12 August 2012, RM500 withdrawn from the account and the balance as of 31
December 2012 was RM8,230. Find the value of X. (use exact time and assume 360 days per
year)
3. A bank pays 10% compounded annually on its three-year fixed deposit account. At the end of
the three years, a 3% bonus on the final amount will be paid. Find the effective interest rate
that will be earned on this scheme.
4. RM1,000 was invested for two years at 10% simple interest. Calculate the effective rate that
was earned.
5. RM600 is invested for 4 years 10 months. This investment is offered interest rates of 9%
compounded every three month for the first 2 years and 7% compounded monthly for the
rest of the period. Calculate the amount at the end of the investment period. How much
interest was earned.
6. Find the future value and interest earned if RM10,000 is invested for three years at 6%
compounded monthly.
7. Peter purchased a house costing RM59,000. He made a down payment of RM6,500. The
balance was borrowed from Credit Corporation which charges 9% effective. To settle the
loan, Peter had to make equal monthly payments for 15 years.
a. Show that the nominal rate compounded monthly that is equivalent to the effective rate
above is 8.65%.
b. Find Peter’s monthly payment.
c. Find the total interest that he had to pay.
d. If credit Corporation invested immediately all the monthly repayments in an account that
pays 8% compounded monthly, find the profit made by the corporation at the end of the
15 years.

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