Question: QUESTION 1 (20 MARKS) a. You have won a total of RM75,000.00 from a contest participating in a reality television program. The prize money will
QUESTION 1 (20 MARKS) a. You have won a total of RM75,000.00 from a contest participating in a reality television program. The prize money will be used to make future investments and that can promise returns for each year. After looking at several investment options available in the market, there is an opportunity where you will receive a return of RM40,000.00 for 5 years earned at the end of the year. However, the returns can only be earned in the 4th year until the 8th year. REQUIRED: Assuming the rate of return is 20%, is the amount of prizes you earn enough to choose the investment you are currently considering. Show calculations to support your answer. [8 marks]
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