1. Mr. Kamal is planning for his sons education. The boy is eight years old now and will start college in 12 years time. Calculate how much must he set aside now to have RM 100,000 when his son starts schooling with the interest rate of 8 %.

2. If you can earn 12% on your investments, and you would like to accumulate $100,000 for your childs education at the end of 18 years, how much must you invest annually to reach your goal?

3. You are offered an investment that will pay you RM200 in year 1, RM400 the next year, RM600 the following year, and RM800 at the end of the 4th year. You can earn 12% on similar investments. Calculate how much you should pay for this investment.

4. Calculate the present value of $600 perpetuity at 7% discount rate