a) Hazwan deposited RM6,000 in a savings account for five years. The bank offered 4% interest
rate compounded quarterly for the first two years and 5% compounded semiannually for the
rest of the period. After five years, Hazwan withdraw RM3,000 from his savings account. Find
the balance in his account immediately after the withdrawal.
(5 marks)
b)
Pian intends to have of RM 50,000 in 10 years. He has two options to choose from, either invest
RMX in Bank A that pays 7% dividend compounded annually or invest in Bank B that offers a
return of 8% compounded every four months.
i)
Find the value of X.
Which bank should Pian choose and why?
(4 marks)
(1 mark)