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3. Suppose that James deposited RM 5,000 in a saving account of a bank with an interest rate of 4% per year compounded annually (a)
3. Suppose that James deposited RM 5,000 in a saving account of a bank with an interest rate of 4% per year compounded annually (a) If the interest is calculated based on the principle' only, what is the total amount after 6 years? Draw a table to include the principle and [9 marks] the amount earned at the end of each year. (b) If the interest is calculated based on the 'total principle and interes', what is the total amount after 6 years? Draw a table to include the new principles and the amount earned at the end of each year 9 marks] (c) Based on the amount obtained from 3(a) and 3(b), which method (i.e. 17 marks] (a) or (b)) will you choose? Why? Total: 25 marks]
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