Fund A is earning an interest of 3% effective. The interest earned every year from the fund would all be used to pay RM 15000 for an annuity at the end of each year for 10 years. a) Calculate the deposit of Fund A.

The annual payments for the annuity were made consistently for the first seven years. If the actual interest earned from Fund A for year 3 to 7 was at 5% effective instead of 3%, answer the following questions.

b) How much excess interest had been accumulated in Fund A at the end of the seventh year?

c) What is the accumulated value for the annuity at the end of seventh year, if the interest rate for the annuity is at 2.5% effective?