Revision Exercises 1:

1. A person decides to put aside RM150 at the beginning of every month in a money market
fund that pays interest at the rate of 9% compounded monthly. How much money does he
have at the end of one year?

2. A loan of RM35 000 is to be repaid in 30 equal payments payable at the interval of 3 months,
the first being made at the beginning of first quarter. If the rate of interest is 8%
compounded quarterly, what is the amount of quarterly instalment?

3. A sequence of payments of RM200 are made on monthly basis, the first being made at the
end of 3 years and the last at the end of 5 years. Find the amount of this annuity, if interest
is calculated at 12% per annum compounded monthly.

4. A loan of RM10 000 is to be amortized by equal payments at the end of every 3 months
period for 5 years. If money is worth 16% per annum compounded quarterly,
Find
a. The quarterly instalment
b. The principal outstanding at the beginning of 4th year.
c. The principal repaid in 3 years