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Mr Kante Havertz is a Quality Inspector working in Kuala Lumpur, Malaysia. Analyze all of these engineering economy case studies related to Mr Kante and
Mr Kante Havertz is a Quality Inspector working in Kuala Lumpur, Malaysia. Analyze all of these engineering economy case studies related to Mr Kante and answer the following questions. For EACH question, draw the suitable cash flow diagram and show the complete calculation process. (a) Mr Kante would like to compare the interest he will earn from an investment of RM1000 for 15 years at 10% per annum simple interest, with the amount of interest that could be earned if these funds were invested for 15 years at 10% per year, compounded annually. Calculate the difference between those two options, and give your suggestion to Mr Kante. (10 marks) (b) Mr Kante would like to invest in a small Chili business. Suppose that the interest rate is 10% per year, compounded annually. Calculate the minimum amount of money that Mr Kante should have to be invested for a two-year period in order to earn RM 300 in interest. (10 marks) (c) Mr Kante wants to have RM 2000 at the end of three years. Calculate the amount that he has to invest at a 10% per year interest rate, compounded annually, in order to obtain a net of RM 2000 after paying a RM 250 early withdrawal fee at the end of the third year. (10 marks)
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