1. Muath has just received a trust fund from his father amounting to $2,450,000. He decides to put all of the money in a long term deposit for 10 years. Bank Jahal offers him an interest rate of 5 percent with annual compounding, while Bank Batil, offers him an interest rate of 4.8 percent with quarterly compounding.
How much will he have in his account at the maturity if he chose Bank Jahal?
a. $1,504,088
b. $3,990,792
c. $3,948,086
d. $4,587,099
e. $5,046,089
2. Hateem plans to invest in the Shariah compliance stock market at the end of each year?. In average he earns 10% per year on his stocks. What will be the amount Hateem needs to invest at the beginning of each year in the stock if he wishes to have $500,000 after 30 years?
a. $3,256.98
b. $2,960.89
c. $2,763.29
d. $3,039.62
e. $1,964.04