Raja Nasuha is a single man and wants to save up enough money to put as a down payment on a new house in five years. He has read that the best way to purchase a house is with a 20 percent down payment. He has a large income and very little debt right now so he can afford to save a substantial amount of money every month. He is asking you for some advice to help him reach his goal.

1. Raja Nasuha just found a very nice house today that is currently selling for RM150,000. Based on an inflation rate of 5 percent in the local real estate market, calculate the house value in five years. (3 Marks)
2. Assume that Raja Nasuha will need RM30,000 for his 20 percent down payment in five years. How much would he have to save every year in an investment that pays 9 percent, compounded annually? (3 Marks)
3. It is now five years later, and Raja Nasuha has saved up enough money to make a 20 percent down payment on a new house. He will have to borrow RM135,000 at an annual rate 6 percent for 30 years, compounded monthly. What will his monthly payment be?(3 Marks)
4. Raja Nasuha wish to invest his money to buy a 2^nd house in 3 years, he has RM1O,OOO that he can deposit in any of three savings accounts.
   1. Option 1 : Saufi Bank, compounds interest on an annual basis.
   2. Option 2 : Heng Lun Bank, compounds interest twice each year.
   3. Option 3 : Halmi and Rosnan Bank, compound interest each quarter year.

All three banks have a stated annual interest rate of 4%. Calculate the amount that Raja Nasuha would have at the end of the third year. (9 Marks)

5. On the basis of your findings in question 6(d), which bank should Raja Nasuha deposit his money? Explain your answer. (3 Marks)