Munshi saved rm 500 a year ago and x ringgit today , in an account that pays 8.5% compounded semi- annually . Find the value of x if he wants rm 1000 in the account one year from today.

Answer 1

He gets 2 years of interest on the original 500, and 1 year on the extra x. So, we want

500(1 + .085/2)^(2*2) + x(1 + .085/2)^(2*1) = 1000

Answer 2

485.98

Answer 3

Abi wishes to invest RM8,000 in a fixed deposit account for one year. He has two options:
AAA Bank which offers 3.7% interest compounded semi-annually.
BBB Bank which offers 3.75% interest compounded annually.