Assume that you plan to buy an apartment 5 years from now and you need to save for a down payment. You plan to save RM2,500 per year with the first deposit made immediately (at the beginning of the year), and you will deposit the funds in a bank account that pays 4% interest.
How much will you have after 5 years? How much will you have after 5 years if you make the deposits at the end of each year?
Even if the bank provided the same interest rate, which option would give a higher total savings after 5 years? Explain.
