Suppose that your endowment for year 1 and year 2 is RM6000 and RM7000 respectively. The current interest rate is 10% and in the current period, and you have always held on to the principle of not being a borrower nor a lender. Now, supposed interest rate has risen to 20%. Using a graph to illustrate and explain what happens to you when the interest rate has risen. Will the rise in interest rate cause you to violate your principle? Explain.