(a) Zaim Ahmad, a junior executive in one of multinational company in Shah Alam wishes to buy a house in 6 years from now. Based on survey done, he found one in Shah Alam value at RM420,000. In order to buy the house, he need to pay 10 percent down payment. Compute the amount that he need to deposit every year into saving account that pay 4 percent interest compounded annually in order for him to pay down payment of the house.

(6 marks)

(b) Fendry deposit RM2,000 per year in the account that pay 4 percent interest for 5 years. Then, after that he transfer the money to account that pay 6 percent interest for 3 years. Calculate the amount of money he will have in account after 8 years.

(6 marks)