3 / 8 90% + QUESTION 2 (20 MARKS) (a) You have kept aside RM100,000 in the bank to pay for your house renovation. Today, you received a bill from your contractor amounting to RM60,000. At the same time, there is an investment offer from a reputable bank that you are highly considering. The investment opportunity promises the following returns: Investment amount Return (percent) 16 First RM20,000 Next RM20,000 14 Next RM20,000 11 9 Next RM20,000 Next RM20.000 8 Suppose the market interest rate is 10 percent per annum, based on the Fisher's Theorem: i. Determine your investment tier. (4 marks) it. Calculate your optimise return one year later. (8 marks) (b) Explain divergence of interest between principal and manager of a firm (4 marks) IL Describe TWO (2) ways to reduce the above divergence of interest with example (4 marks) . c ENG US CE delete insert prt sc F10 home E11 end F12 backspace lock 8 9 0 3 / 8 90% + QUESTION 2 (20 MARKS) (a) You have kept aside RM100,000 in the bank to pay for your house renovation. Today, you received a bill from your contractor amounting to RM60,000. At the same time, there is an investment offer from a reputable bank that you are highly considering. The investment opportunity promises the following returns: Investment amount Return (percent) 16 First RM20,000 Next RM20,000 14 Next RM20,000 11 9 Next RM20,000 Next RM20.000 8 Suppose the market interest rate is 10 percent per annum, based on the Fisher's Theorem: i. Determine your investment tier. (4 marks) it. Calculate your optimise return one year later. (8 marks) (b) Explain divergence of interest between principal and manager of a firm (4 marks) IL Describe TWO (2) ways to reduce the above divergence of interest with example (4 marks) . c ENG US CE delete insert prt sc F10 home E11 end F12 backspace lock 8 9 0