Select any TWO (2) commercial banks in Malaysia. Based on the current interest rates offered by...

Select any TWO (2) commercial banks in Malaysia. Based on the current interest rates offered by the banks, calculate the future value of an annuity of RM100,000 made at the beginning of every year for 10 years. Analyse and compare the effect of the interest rates offered by the banks on the total savings

Expert Solution

1. AFFIN BANK - Interst on annuity - 2.45%

PMT = 100,000

r = 2.45%

n = 10

FV = (PMT x (1 + r)ⁿ - 1 / i )

= (100,000 x (1.0245)¹⁰ - 1 / 0.0245

= 1,117,771

2. RHB BANK - Interst on annuity - 2.35%

PMT = 100,000

r = 2.35%

n = 10

FV = (PMT x (1 + r)ⁿ - 1 / i )

= (100,000 x (1.0235)¹⁰ - 1 / 0.0245

= 1,112,657

jeff jeffy answered 2 years ago

QUESTION 2 Select any TWO commercial banks in Malaysia. Based on the saving account interest rates...

QUESTION 2 Select any TWO commercial banks in Malaysia. Based on the saving account interest rates offered by the banks, calculate the future value of annuity of RM300,000 made at the beginning of every year for 10 years. Analyse and compare the effect of the interest rates offered by the banks on the total savings. ASSIGNMENT RUBRICS Criteria Excellent Good Fair Poor Unsatisfactory Max Marks 4 3 2 1 0 Introduction of the selected commercial banks. Clear and detailed introduction...

What is the commercial banks’ interest rates risk? ( 20 marks) Explain how the commercial banks...

What is the commercial banks’ interest rates risk? ( 20 marks) Explain how the commercial banks managed its interest rates risk. ( 30 marks )

Identify and briefly explain any three factor which influence interest rates set by commercial banks

Question 1.Based on the following current interest rates offered by the bank A and Bank B...

Question 1.Based on the following current interest rates offered by the bank A and Bank B , calculate the future value of an annuity of $100,000 made at the beginning of every year for 10 years using excel method. [Shows the formula] Bank A - 2.50% p.a Bank B - 2.35% p.a

The table below shows term deposit interest rates offered by five banks. Please answer the following...

The table below shows term deposit interest rates offered by five banks. Please answer the following questions: (a) Limit the entries to the 7 terms (i.e., 1 month - 24 months) (1 mark). (b) Use functions to work out the highest interest rate for the term selected in part (a) (2 marks). (c) Use functions to work out which bank is offering this rate (2 marks). Term Deposit Interest Rates Bank 1 month 3 months 6 months 9 months 12...

select any two (2) economic concepts that you found particularly appropriate relevant to understanding the current...

select any two (2) economic concepts that you found particularly appropriate relevant to understanding the current and potential future impact of the pandemic on society and the economy. First define the economic concept. Then evaluate how an understanding of these economic concepts relate to the impact of the pandemic on the overall economy or a particular industry. Finally, how might this understanding effect your personal behavior and decision making by providing a specific example. The essay should include at least...

Select and analyze current news article covering calculation and usage of interest rates and discuss your...

Select and analyze current news article covering calculation and usage of interest rates and discuss your findings. You will be discussing at least ONE news article/video by yourself. Discussion Post Resource List CNN Money: www.money.cnn.com (Links to an external site.)Links to an external site. Yahoo! Finance: www.finance.yahoo.com (Links to an external site.)Links to an external site. Bloomberg Business: www.bloomberg.com (Links to an external site.)Links to an external site. Forbes: www.forbes.com (Links to an external site.)Links to an external site. Seeking...

C is offered a capital interest in a partnership whose sole asset is a commercial building...

C is offered a capital interest in a partnership whose sole asset is a commercial building with a fair market value of $150,000 and an adjusted basis of $90,000. The building has been depreciated on the straight line method. A and B have $45,000 outside bases in their respective partnership interests. C has performed real estate management services for the partnership over the past year and has agreed to perform additional services in the future. (a) What are the tax...

If British banks pay 2% interest and American banks pay 5% interest on deposits, is there...

If British banks pay 2% interest and American banks pay 5% interest on deposits, is there a risk-free way you could make a profit? What factors you have to consider?

Search and select any commercial Big Data Solution available in any domain and pick any one...

Search and select any commercial Big Data Solution available in any domain and pick any one factor below to support your selection. At least 10 sentences Scalability Sizing Performance Manageability & flexibility Complexity, Ease of use Relevant Functionality Proprietary & open source SW features & support

Question