CHAPTER 7: Compound Interest

CHAPTER 7: Compound Interest

Multiple Choice

RM9,000 is invested for 7 years 3 months. This investment is offered 12% compounded monthly for the first four years and 12% compounded quarterly for the rest of the period. Calculate the future value of this investment.

• RM20,189.00

• RM37,987.90

• RM21,308.48

• RM18,984.00

Multiple Choice

Lolita saved RM5,000 in a savings account which pays 12% interest compounded monthly. Eight months later she saved another RM5,000. Find the amount in the account two years after her first saving.

• RM15,611.90

• RM12,211.57

• RM13,455.45

• RM12,000.00

Multiple Choice

Bella invested RM20,000 in a bank. The interest rate offered was 4.8% compounded monthly. Find the interest earned at the end of 3 years and 4 months.

• RM2,145.45

• RM3,462.73

• RM4,567.80

• RM8,956.00