Hi.. I'm really new to this; e.g. I have absolutely no idea on what "compound" interest means.
Anyway, I was reading ur reply, and I want to know why did you divide 40% by 15 years? What do you get, and why is 2.66 not good?

Thanks for answering my question Just to clear my doubts, I would like to ask a further question. Assuming I put in 1K everyyear, i get 5% every year, I would have the following tabulation (Cut & paste from Excel):

Year |Input| |Amt in a/c||Interest for present year| |Amt in a/c for present year with interest|
1 1,000 1,000.00 50.00 1,050.00
2 1,000 2,050.00 102.50 2,152.50
3 1,000 3,152.50 157.63 3,310.13
4 1,000 4,310.13 215.51 4,525.63
5 1,000 5,525.63 276.28 5,801.91
6 1,000 6,801.91 340.10 7,142.01
7 1,000 8,142.01 407.10 8,549.11
8 1,000 9,549.11 477.46 10,026.56
9 1,000 11,026.56 551.33 11,577.89
10 1,000 12,577.89 628.89 13,206.79
11 1,000 14,206.79 710.34 14,917.13
12 1,000 15,917.13 795.86 16,712.98
13 1,000 17,712.98 885.65 18,598.63
14 1,000 19,598.63 979.93 20,578.56
15 1,000 21,578.56 1,078.93 22,657.49

In 15 years, I would have received a total of RM 7657.49 from the interest, which is 48.95% from the RM15,000 that I have put in 15 years (i.e. 15000-7657.49/15000). If I divide that 48.95 by 15 years, I would have 3.26 %<--- what does this ratio means?

So offence yah... cause basing my understanding from what I gather above, I still dont understand what does this ratio means, and why it is being compared with the F.D. rate of 3-3.5% per year, because I would compare 3-3.5% per year rate with the 5% per year rate, which seems more like comparing an apple with apple. Please help me understand

Sorry yah, i am abit confused loh, because if F.D. is giving me 3-3.5% per year, as compared with 5% per year, that in itself is already a comparison between apple and apple... but I would agree that FD is more liquid.. that at least I can understand.

This post has been edited by kittybunny: Dec 28 2008, 11:24 AM

Ya... if its offered from today onwards, how come already finished??? Today bank really alot of people... standing under the HOT HOT sun.
Anyone here managed to get any??

Sorry, may I ask what is being released in August, and when in August? I managed to get my first ASM, but only after q-ing up from 7:40 - 3:30! Stupid bank did not give out number to all the aunties there, made us q-up all the time! Pity those aunties, they really waited patiently all the time, but they all help each other out, each take their break and come back and join the q again.