QUESTION 1

a) On 27 October 2018, Ruby Gem invested RM63,000 into an investment scheme at r% per annum
interest rate in 100 days. Through this investment, she earned an interest amount of RM1,750. Find:

i) the maturity date (3M) 4 Feb 2019

ii) the simple interest rate (r%) by using the Banker’s Rule (2M) 10%

iii) the simple amount received at the end of her investment period. (2M) RM64750

b) On 6 March 2014, RM Z was invested at a simple interest rate of 5% per annum. RM6,375 was
withdrawn on 6 March 2018 and the balance in the account was RM11,625. Calculate the value of Z.
(3M) RM15000

QUESTION 2

Fatimah received a 130-day promissory note at 8% simple interest per annum on 23 July 2018 from
Haisya. However, after 90 days, Fatimah sold the note to a bank at discount rate of 6% and received
proceeds of RM6,000. Determine:

a) the payee (1M)

b) the maturity date (3M) 30 Nov 2018

c) the maturity value (2M) RM6040.27

d) the face value (2M) RM5870.67

e) the amount of interest received by Fatimah (2M) RM129.33

QUESTION 3

Ten years ago, RMX was invested in a bank account that paid an interest rate of 7% compounded
annually. If the amount in the account today is RM15,737.21.

a) Find the value of X (3M) RM8000.00

b) If another RM4,000 is added into the same account today, find the total amount in the account after three
years. (3M) RM21178.93

c) Find the future value of RM 3,400 invested for 30 months at 6.3% compounded monthly. Calculate the
total interest earned. (5 marks) RM3978.33/ RM578.34

c) Ilham wants to make a loan of RM 7,000 for 2 years. He has two options.

Bank A charges 6% interest compounded monthly.

Bank B charges 6.5% interest compounded quarterly.

Which bank should he choose? Give your reason. (5M)