A. empt 549773&cmid=202264&page=10 his first installment for retirement. Answer the following questions: It is December 2021...

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A. empt 549773&cmid=202264&page=10 his first installment for retirement. Answer the following questions: It is December 2021 and Ahmad, age 35 is in the process of reviewing her retirement savings and planning for his retirement at age 60. He currently has RM80,000 saved (which included the deposit he just made today) and he invests RM2.000 per year at the end of the year in a retirement account that earns about 5% annually. He had decided that he is comfortable living on RM60,000 per year (in today's Ringgit) and he thinks he can continue to live on that amount as long as it is adjusted annually for inflation. Inflation is expected to average 3% per year for the foreseeable future. B. After researching information on average life expectancy for male of his background, his plan will assume he lives age 75. He will withdraw the amount needed for each year during retirement at the beginning of the year. Hence, December 31 at age 60, he will make his last deposit of RM2,000 and the following day (January 1), he will withdra his first installment for retirement. Answer the following questions: (5 marks) How would the situation change if Ahmad was to start placing his RM2,000 annual savings into his retirement account on January 1 of each year rather than December 31 of each year. C. If Ahmad continues on his current plan, will he be able to accomplish it? (5 marks) If Ahmad resumes making his deposits at the end of the year, how much would he has to save each year to accomplish his objective. (5 marks) D. Assume that Ahmad continues with his current plan. What amount of deposit would he invests yearly to ensure his investment work? (5 marks) E. Rework on question (A), instead of 5% return on investment, calculate return on investment of 6% per year earn from his retirement fund. A. empt 549773&cmid=202264&page=10 his first installment for retirement. Answer the following questions: It is December 2021 and Ahmad, age 35 is in the process of reviewing her retirement savings and planning for his retirement at age 60. He currently has RM80,000 saved (which included the deposit he just made today) and he invests RM2.000 per year at the end of the year in a retirement account that earns about 5% annually. He had decided that he is comfortable living on RM60,000 per year (in today's Ringgit) and he thinks he can continue to live on that amount as long as it is adjusted annually for inflation. Inflation is expected to average 3% per year for the foreseeable future. B. After researching information on average life expectancy for male of his background, his plan will assume he lives age 75. He will withdraw the amount needed for each year during retirement at the beginning of the year. Hence, December 31 at age 60, he will make his last deposit of RM2,000 and the following day (January 1), he will withdra his first installment for retirement. Answer the following questions: (5 marks) How would the situation change if Ahmad was to start placing his RM2,000 annual savings into his retirement account on January 1 of each year rather than December 31 of each year. C. If Ahmad continues on his current plan, will he be able to accomplish it? (5 marks) If Ahmad resumes making his deposits at the end of the year, how much would he has to save each year to accomplish his objective. (5 marks) D. Assume that Ahmad continues with his current plan. What amount of deposit would he invests yearly to ensure his investment work? (5 marks) E. Rework on question (A), instead of 5% return on investment, calculate return on investment of 6% per year earn from his retirement fund.

Answer rating: 100% (QA)

A To determine if Ahmad can accomplish his retirement plan we need to calculate the amount he would have in his retirement account when he reaches age 60 and the amount he would need to withdraw each ... View the full answer