Question $5$

$($a$)$ Zayd invested RM$7,000$ in Bank A three years ago. The bank pays $8\%$ simple

interest per annum. He decided to withdraw all the money accumulated in that

bank and invest in Bank $Z$ that gives $5\%$ interest compounded quarterly. He plans

to keep the money for $4$ years in Bank $Z.$

Calculate the accumulated amount at the end of the fourth year.

$($b$)$ Sofea plans to buy a condominium when she graduates from Wawasan Open

University three years from now. The condo's selling price is expected to be

RM$240,000$ in three years ${?}^{+}$time and she will need $10\%$ of the selling price as a

deposit to book the condo.

If she puts RM$6,000$ now in an account that yields $15\%$ interest compounded

semi$-$annually, how much more would she need to deposit soon after she has

graduates?

$($c$)$ Ridzuan is a tinance student at a college. Recently, he has won RM $15,000$ from a

competition. He needs your advice on his investment options:

Option A: Invest in a fund that pays $8\%$ simple interest for $2$ years.

Option B: Invest in a fund that pays $6\%$ compounded semi$-$annually for $2$

years.

Option C: Invest in a fund that pays $3\%$ compounded fortnightly for $2$ years.

You are required to calculate the accumulated sum from each option and to

advice Ridzuan on the best option available.