Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1A) CAM Precision Sdn. Bhd. is an advanced manufacturing company listed in Top 100 hi- tech global ranking. This company shows a potential investment with

image text in transcribed

1A) CAM Precision Sdn. Bhd. is an advanced manufacturing company listed in Top 100 hi- tech global ranking. This company shows a potential investment with interest return rate of 8% per year. Your family plan to invest RM (200 x 1,000) + 15,000. Apply the simple interest and compound interest approach to calculate the total investment after FOUR (4) years. Assume that your family do not withdraw the money earned at the end of each year, but instead let it accumulate. 1b) Based on the compound interest approach and its result from Q1(a), after the 4th year, the company increase its return rate to 10% per year compounded every 6 months. Apply the effective interest rate per year to determine the total investment at the end of EIGHT(8) year 1A) CAM Precision Sdn. Bhd. is an advanced manufacturing company listed in Top 100 hi- tech global ranking. This company shows a potential investment with interest return rate of 8% per year. Your family plan to invest RM (200 x 1,000) + 15,000. Apply the simple interest and compound interest approach to calculate the total investment after FOUR (4) years. Assume that your family do not withdraw the money earned at the end of each year, but instead let it accumulate. 1b) Based on the compound interest approach and its result from Q1(a), after the 4th year, the company increase its return rate to 10% per year compounded every 6 months. Apply the effective interest rate per year to determine the total investment at the end of EIGHT(8) year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Local Public Finance

Authors: René Geissler, Gerhard Hammerschmid, Christian Raffer

1st Edition

3030674681, 978-3030674687

More Books

Students also viewed these Finance questions