Question $3$

Puan Delima is considering depositing her money into one of the banks for three years. She

now has RM$10,000$ in her hand. She is considering the three following alternatives:

Alternative $1$:

Bank A offers $10\%$ interest rates compounded yearly.

$(4$ Marks$)$

Alternative $2$:

Bank B offers $12\%$ interest rates compounded semi$-$annually.

$(4$ Marks$)$

Alternative $3$:

Bank C offers $16\%$ interest rates compounded quarterly.

You are required to calculate the value of money for each alternative. Based on the

calculation which bank should Puan Delima choose? Explain your answer. $(8$ Marks$)$