1. 1. Sallina borrows RM67,000 from you now and promises to repay RM183,229 in the future at an interest rate of 9 percent per year. How long will it take to fulfill the promise?

2. You have assessed your retirement situation and have decided that you will need RM2mil when you reach retirement age. If you work for the next 30 years and earn an average of 12% interest, determine your annual savings.

3. He plans to invest RM2,000 a year in one of the Malaysian investment funds for the next 20 years. You would like to know the effect of investing this money at the beginning of each year instead of waiting until the end of each year. Calculate the difference in the future value of your investment for the next 20 years:

 i. If the annual investment is at the end of each period.

2. ii. If the annual investment is at the beginning of each period.

For both cases, assume that an interest rate of 10 percent applied

4. Sabri expects to receive RM3,500 a year by the end of the next three years. She will deposit these payments into an account, which she pays 10 percent compounded semiannually. What is the accumulated value of this deposit in the third year?

Answer rating: 100% (QA)

1 To calculate the time it will take to fulfill the promise of repaying RM183229 at an interest rate of 9 percent per year we can use the formula for compound interest A P1 rnnt Where A Future value o... View the full answer