Assignment 2

Select any TWO (2) commercial banks in Malaysia. Based on the current interest rates offered by the banks, calculate the future value of an annuity of RM 100,000.00 made at the beginning of every year for 10 years. Analyse and compare the effect of the interest rates offered by the banks on the total savings. (Able to identify and explain clearly the differences between the total saving from both banks. Able to discuss clearly the effect of the interest rate on the total savings) [TOTAL: 40 Marks]