INTRODUCTION TO FINANCIAL MANAGEMENT

All answer need attach calculation table and explain.

a) Mei Lin is putting money aside to purchase a new house in four years. She plans to save RM4500 at the end of each month for the next four years. She plans to put the money into a savings account with a monthly interest compounding rate of 2.0 percent. Determine how much money she will have in four years. (5 marks) b) In ten years, John Hsu hopes to establish a business. He aims to acquire RM2UO,UUO to invest in the firm by that time. To achieve his aim, he wants to put a particular sum today in an investment fund that will pay him 8.0 percent per annum, compounded semi-annually. Calculate how much John will have to invest today to reach his goal. (5 marks) c) Muthu had just acquired a car loan from a bank. The bank had agreed to lend him RM120,UUO in exchange for a 5% down payment on the automobile. Muthu would have to pay monthly instalments to repay the debt at a rate of 3.0 percent per annum compounded monthly for 9 years. i) Compute the amount of his monthly payment. (5 marks) BBF2GH03 Introduction to Financial Management Assignment 2 ii) Calculate Muthu's total interest assuming he keeps the loan till the agreed- upon settlement term. {4 marks) iii) Determine how much interest Muthu would save if he decides to pay off the dept entirely after 6 years. (6 marks)