QUESTION 5 a) Mr and Mrs Chong are considering two types of education saving for their children. Saving A requires Mr and Mrs Chong to deposit RM500 at the end of each month and it earns interest of 3% per year compounded monthly. Saving B requires Mr and Mrs Chong to deposit an initial sum of RM50,000 for ten years and it earns interest of 2.5% per year compounded quarterly. How long will it take for Saving A to accumulate the same amount as Saving B? (6 marks) b) How much should be deposited into a bank account paying interest at the rate of 4% per year compounded monthly so that at the end of 5 years it is equivalent to a saving plan with a monthly payment of RM300, which earns interest at the rate of 4.5% year compounded monthly? (5 marks) c) An investment earning interest at the rate of r% per year compounded quarterly grew from an initial sum of RM2000 to RM3000 in 3 years. What is the value of r? (4 marks) d) The prices and the numbers of various items used by a construction company are listed below: Item 2015 2020 Price (RM) Quantity Price (RM) Quantity Cement 16 1700 18 2000 Brick 2 125,000 2.5 130,000 TMX Steel 4 400 5 430 Binding Wire 40 600 42 630 Compute the Fisher's Ideal Price Index for 2020 using 2015 as the base period. (5 marks) (Total: 20 marks)