1.Leo would like to purchase a house in 5 years. He save RM4,500 every 3 months starting at the end of the first period to provide for that purpose. If money is worth 10 percent per annum, calculate the saving amount that Leo will have by the time he need to pay for the house deposit.

2. Matilda would like to start up her own florist shop. While doing her business plan, she estimated her dream florist shop to cost around RM300,000 with restoration. If she started saving today a sum of RM15,000 every quarter at 12 percent compounding rate, will she be able to own the shop after 4 years?

3.Ashley has just won an art competition. Suppose that Ashley has an opportunity cost of capital of 8 percent per annum paid semi-annually, and she must decide between the following two alternatives of prizes. Decide which is a better option for Ashley.

1. Instalment of RM70,000 paid every end of 6 months over a 3 years period.
2. Lump sum of RM420,000 paid 3 years later compounded annually.