1. Mr.Zaki has a retirement resources of RM1 million. He plans to receive a constant annual retirement income payable at the beginning of each year for the next 30 years. Calculate the constant amount of the annual retirement income if the rate of return during retirement is 5% per annum.

a.RM67,678

b.RM65,051

c.RM61,954

d.RM69,331 -

An individual begins to accumulate retirement fund considering todays inflation throughout the post-retirement period. If the inflation actually turns out to be lower after retirement, the accumulated fund would

a.more or less be sufficient till the expected lifespan.

b.be consumed earlier than anticipated.

c.last longer than anticipated.

d.get inflated by the margin inflation is lower. -

Assuming the rate of return is fixed at 8% per annum. Which of the following investments will produce the most retirement resources?

a.Investing RM200 per year for 40 years

b.Investing RM950 per year for 10 years

c.Investing RM2,000 per year for 5 years

d.Investing RM460 per year for 20 years