1） Wong opens a savings account and deposits an initial amount of RM5,000 into it. He plans to deposit RM6,000 into the account after two years and another RM4,000 three years from today. How much will he have in his account five years from today if he earns a 6% rate of return?

2）Jacob is 45 years old and plans to retire at the age of 60. After his retirement, he plans to support his living by being able to withdraw RM6,000 per month from a retirement fund. If he expects to live until the age of 85, how much money does he need in the retirement fund when he retires assuming that he can earn 6.5% rate of return per year from the fund?

if Jacob wants to start investing a level/fixed amount every month from now (at the of 45) until he retires (at the age of 60) in an investment account that pays 6% annual rate of return, how much should the monthly fixed investment be?

3） You’re prepared to make monthly payments of RM150 into an investment account, beginning at the end of this month for 8 years, to accumulate a sum of RM20,000. What is the nominal interest rate offered by the account? 

Answer rating: 100% (QA)

ANSWER 1 Wong will have RM6000 in his account after two years and RM4000 in his account after three years from today Therefore the total amount he wil... View the full answer