MAT301 BUSINESS MATHEMATICS AND STATISTICS

PROJECT

On completion of this project, you should be able to:

CO2 Apply the compound amount formula to calculate the future value, compound interest, and present value of investments and loans.

CO3 Identify and solve problems where the present value and future value of annuity formulae can be appropriately applied.

TASK:

Fazlina has just graduated from a university. Currently, she works as a junior executive in a local bank and receives a monthly income of RM2750 nett. She plans her monthly financial as per following:

10% investment on Private Retirement Scheme.

10% investment for emergency purposes; investment made in a savings account at a local bank.

15% investment for wedding purposes; investment made in a savings account at local bank for 3 years.

Maximum of 25% for monthly payment of a car. Apply a car loan from a local bank for maximum of nine years instalment.

Required:

1. Calculate the amount of her investment for wedding purposes at the end of three years and the interest earned. Use the rate of interest in Appendix 1 (Table 1) for your reference. Justify why she should save her money to the particular bank.

APPENDIX 1

Table 1: Interest for savings account offered by local bank.

Bank	Account name	Minimum deposit (RM)	Maximum interest offered (%)
OUB	UOB eAccount	500	3.5 p.a
Affin Bank	Affin Bank Basic Savings	20	2.05 p.a
Affin Bank	Affin Islamic Wealth Saver-i	100	3.08 p.a
AmBank	AmBank TRUE Savers Account	20	2.00 p.a
RHB Easy	RHB Easy-Simpanan Mesra	100	1.35 compounded quarterly
Maybank	Maybank Basic Savings Account	20	1.3 compounded monthly