Question 1

(i)Lee invested RM10,000 today in a fund that earns 8 percent compounded annually. How much his investment will grow in 3 years?

(ii) Malaysia Manufacturing Agents, Inc. is preparing a five-year plan. Today, sales are RM1,000,000. If the growth rate in sales is projected to be 10 percent over the next five years, what will the ringgit amount of sales be in year five?

(iii)Amy has just bought a scratch lottery ticket and won RM10,000. He wants to finance the future study of his newly born daughter and invests this money in a fund with a maturity of 18 years offering a promising yearly return of 6 percent. What is the amount available on the 18th birthday of his daughter?(2