Question

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 of the two commercial banks that covers the banks’ names, year of establishment, size, vision, mission and business activities.	Clear and adequate introduction of the two commercial banks that covers the banks’ names, year of establishment, size, vision, mission and business activities.	Clear but brief introduction of the two commercial banks that covers the banks’ names, year of establishment, size, vision, mission and business activities.	Vague introduction of the two commercial banks that covers the banks’ names, year of establishment, size, vision, mission and business activities.	No introduction was given.	4
Calculation of future value of annuity. (1st Bank).	Able to identify correctly the current interest rate. Correct calculation of future value of annuity with detailed workings provided. Clear and detailed interpretations were given.	Able to identify correctly the current interest rate. Correct calculation of future value of annuity with detailed workings provided. Clear interpretations were given.	Able to identify correctly the current interest rate. Correct calculation of future value of annuity with adequate workings provided. Clear but brief interpretations were given.	Unable to identify correctly the current interest rate. Wrong calculation of future value of annuity. No workings and interpretations were given.	No calculation was given.	5
Calculation of future value of annuity. (2nd Bank).	Able to identify correctly the current interest rate. Correct calculation of future value of annuity with detailed workings provided. Clear and detailed interpretations were given.	Able to identify correctly the current interest rate. Correct calculation of future value of annuity with detailed workings provided. Clear interpretations were given.	Able to identify correctly the current interest rate. Correct calculation of future value of annuity with adequate workings provided. Clear but brief interpretations were given.	Unable to identify correctly the current interest rate. Wrong calculation of future value of annuity. No workings and interpretations were given.	No calculation was given.	5
Comparison of the total savings between the two commercial banks.	Able to identify and explain clearly the differences between the total savings from both banks. Able to discuss clearly the effect of the interest rate on the total savings.	Able to identify and explain briefly the differences between the total savings from both banks. Able to discuss briefly the effect of the interest rate on the total savings.	Able to identify and explain briefly the differences between the total savings from both banks. Unable to discuss the effect of the interest rate on the total savings.	Unable to identify and explain the differences between the total savings from both banks. Unable to discuss the effect of the interest rate on the total savings.	No comparison was given.	6
TOTAL						20

Answer 1

1.  Introduction of the may bank : Malayan Banking Berhad is a Malaysian universal bank, with key operating "home markets" of Malaysia, Singapore, Philippines and Indonesia. According to the Brand Finance report, Maybank is Malaysia's most valuable bank brand, the fifth top brand in Asean and ranked 83rd in the world’s most valuable bank brands.

Founded	31 May 1960
Founder	Khoo Teck Puat & Oei Tjong Ie
Headquarters	Menara Maybank Kuala Lumpur, Malaysia
Area served	Southeast Asia Singapore, Hong Kong, China, Bahrain, UK, US, Pakistan
Key people	Abdul Farid Alias, Group President and CEO Mohaiyani Shamsudin, Chairman
Revenue	RM45.58 billion (US$11.22 billion) (2017)[1]
Operating income	RM23.37 billion (US$5.75 billion) (2017)
Net income	RM11.91 billion (US$2.93 billion) (2017)[1]
Total assets	RM765.0 billion (US$188.00 billion) (2017)[1

Maybank's mission is to humanise financial services across Asia, by providing access to financial services to the people at fair terms and pricing, and to be always at the heart of the community. Advancing Asia's Ambition With You.

Our Vision For The Nation

An opportunity to join the children of Malaysia and share their visions for the nation as the country celebrates 50 years of independence. The photographs of one million children, Malaysia's future builders, will be made into a montage of the Malaysian flag and raised on 31 August. Their vision will be compiled and presented to the nation's leaders.

To participate, simply donate a minimum of RM3 for each photograph and vision that you submit. Photos and visions can be submitted through the road shows, via mail or online.

2)Calculation of future value of annuity

savings interest rate effective from 2nd June 0.25%

Future value of annuity = P*((1+I)'N-1))/l)*(1+I)

= 300000((1+0.25)^10-1))/0.25*(1+0.25)

=.