QUESTION 2 a) Amirah received a 130-day promissory note at 5% simple interest rate on 10 May 2021. She discounted the note at discount rate of 6% on 18 August 2021. The proceeds she received were RM7,200. Find the maturity value of the note. b) Five years ago, Faiz deposited RM5,000 into a saving account that paid interest at 6.5% compounded monthly. Today, another RM10,000 is deposited into the same account. Find the accumulated amount at the end of 8 years from the initial deposit. c) A lawn mower machine has a scrap value of RM6,900 at the end of 10 years. The book value at the end of the third year is RM13,690. Find the cost of the lawn mower using the straight line method.

QUESTION 2 a) Amirah received a 130-day promissory note at 5% simple interest rate on 10 May 2021. She discounted the note at discount rate of 6% on 18 August 2021. The proceeds she received were RM7,200. Find the maturity value of the note. b) Five years ago, Faiz deposited RM5,000 into a saving account that paid interest at 6.5% compounded monthly. Today, another RM10,000 is deposited into the same account. Find the accumulated amount at the end of 8 years from the initial deposit. c) A lawn mower machine has a scrap value of RM6,900 at the end of 10 years. The book value at the end of the third year is RM13,690. Find the cost of the lawn mower using the straight line method.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 13E

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