Question 10 (4 marks)

A debt of RM6,500 due 5 months ago and another RM12,750 due in 13 months are to be settled by making two equal payments, one at the end of four months, one at the end of seven months. Find the size of payment using, the four month as the focal date. Assuming money is worth 9% per annum simple interest.

Question 11 (5 marks)

Find the value in 3 years time of RM16,200 invested at 5% compounded annually. In the following 2 years, the interest rate is expected to rise to 8%. Find the value of the investment at the end of the 5 years period, and find overall percentage increase.