1. Calculating Net Present Value:

(a) Calculate the present value of RM 3,500,000 (future value) received from Property Development Project in six years (i.e., 2028) from today (i.e., 2022) when the interest rate is 8% per year? Provide the percentage of interest and percentage of principal (i.e., from RM 3,500,000).

(10 marks)

Note: You will need to show your calculations to earn full marks.

(b) Average price per unit of Republic Bank Mutual Trust Fund:

Year Price

2016 0.88

2017 0.94

2018 1.06

2019 1.30

2020 1.25

2021 1.45

Calculate the compound annual growth rate (CAGR) of price per unit of Republic Bank Mutual Trust Fund (round it up to two decimal place).

(10 marks) Note: You will need to show your calculations to earn full marks. (c) Based on the CAGR of price per unit of Republic Bank Mutual Trust Fund, if you invest the principal money you obtained from Q1(a), how much would you receive in 5 years. Would you invest Property Development Project or Republic Bank Mutual Trust Fund?

(10 marks)

Note: You will need to show your calculations to earn full marks.