Jason inherited a million Malaysian Ringgit from his grandfather when he was 20 years old. He decided to buy an asset using half of the amount while the other half are used to buy an annuity scheme that pays monthly until he is 50 years old. The annuity scheme offers 3.18% interest rate that compounding monthly.

a) Calculate the expected amount that he should receive. 13 marks (C2, CLO3, MQF LOD

b) Jason decided to buy a shop lot using one third of the balance as down payment. Given that, the down payment covered about 40% of the price,

i) Find the loan amount (C3, CLO3, MQF LOD 6)

ii) How much that he should pay every month for 20 years if the monthly interest rate offered by the bank is 4%. (C3, CLO3, MQF LOD)

iii) Total interest paid.

Answer rating: 100% (QA)

Jasons Inheritance and Investments Given Inherited amount 1000000 Malaysian Ringgit MYR Age when inherited 20 years old Retirement age 50 years old 30 ... View the full answer