Ang, Bakar and Chandran are friends and they have just graduated from a local university. Ang works in a company with a starting pay of RM2000 per month. Bakar is a sales executive whose income depends solely on the commission he receives. He earns a commission of RM1000 for the first month and this commission increases by RM100 for each subsequent month. On the other hand, Chandran decides to go into business. He opens a cafe and makes a profit of RM100 in the first month. For the first year, his profit in each subsequent month is 50% more than of the previous month.

In the second year, Ang receives a 10% increment in his monthly pay. On the other hand, the profit made by Chandran is reduced by 10% for each subsequent month

1(a)how much does each of them receive at the end of the 1st year?

(b)what is the percentage change in their total income for the 2nd year compared to the 1st year?

(c)Ang, Bakar and Chandran, each decided to open a fixed deposit account of RM10000 for 3 years without any withdrawal.

-Ang keeps the amount at an interest rate of 2.5% per annum for duration of 1 month renewable at the end of each month.

-Bakar keeps the amount at an interest rate 3% per annum for duration of 3 months renewable at the end of every 3 months.

-Chandran keeps the amount at an interest rate of 3.5% per annum for a duration of 6 months renewable at the end of every 6 months.

(i) Find the total amount each of them will receive after three years.

(ii) Compare and comment on the different in the interests received. If you were to invest RM10000 for the same period of time, which fixed deposit  ccount would you prefer? Give your reasons.

FURTHER EXPLORATION

2(a)When Chandran's first child, Johan is born, Chandran invested RM300 for him at 8% compound interest per annum. He continues to invest RM300 on each of Johan's birthday, up to and including his 18th birthday?

(b)If Chandran starts his investment with RM500 instead of RM300 at the same interest rate, calculate on which birthday will the total investment be more than RM25000 for the first time.