Question

Shiro’s grandfather has just announced that he’s opened a saving account for

Shiro with a deposit of RM10,000. Moreover, he intends to make another nine

similar deposit for the rest nine years at beginning of each year. If the savings

account pays 8 percent interest, determine the amount Shiro accumulated at

the beginning of 10 years.

Answer 1

PV= RM 10000

R= 8% or 0.08

N = 10

$FV=PV [\frac{(1+r)^n-1}{r}]$

$FV=RM 10000[\frac{(1+0.08)^{10}-1}{0.08}]$

$FV=RM 144865.62$