FINANCIAL MATH

b) If the effective rate of discount in year m is equal to 0.05m + 0.12 for m = 1,2,3. Given RM5,000 as a principal fund, find the accumulated value after three years by using the equivalent rate of simple interest over the three-year period. i) ii) Find the equivalent rate of simple interest over the three-year period. By using interest in () as compounded interest, given RM5,000 as a principal fund, find the accumulated value after three years. Between simple interest and compounded interest, which interest will give higher return? Justify your answer. 10 Marko