CAM Precision Sdn. Bhd. is an advanced manufacturing company listed in Top 100 hi- n global ranking. This company shows a potential investment with interest return rate of per year. Your family plan to invest RM (200 x 1,000) + 15,000. Apply the simple interest I compound interest approach to calculate the total investment after FOUR (4) years. ume that your family do not withdraw the money earned at the end of each year, but ead let it accumulate. Based on the compound interest approach and its result from Q1(a), after the 4th year, company increase its return rate to 10% per year compounded every 6 months. Apply effective interest rate per year to determine the total investment at the end of HT(8) year

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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1A) CAM Precision Sdn. Bhd. is an advanced manufacturing company listed in Top 100 hi-
tech global ranking. This company shows a potential investment with interest return rate of
8% per year. Your family plan to invest RM (200 x 1,000) + 15,000. Apply the simple interest
and compound interest approach to calculate the total investment after FOUR (4) years.
Assume that your family do not withdraw the money earned at the end of each year, but
instead let it accumulate.
1b) Based on the compound interest approach and its result from Q1(a), after the 4th year,
the company increase its return rate to 10% per year compounded every 6 months. Apply
the effective interest rate per year to determine the total investment at the end of
EIGHT(8) year
Transcribed Image Text:1A) CAM Precision Sdn. Bhd. is an advanced manufacturing company listed in Top 100 hi- tech global ranking. This company shows a potential investment with interest return rate of 8% per year. Your family plan to invest RM (200 x 1,000) + 15,000. Apply the simple interest and compound interest approach to calculate the total investment after FOUR (4) years. Assume that your family do not withdraw the money earned at the end of each year, but instead let it accumulate. 1b) Based on the compound interest approach and its result from Q1(a), after the 4th year, the company increase its return rate to 10% per year compounded every 6 months. Apply the effective interest rate per year to determine the total investment at the end of EIGHT(8) year
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