2. Benjamin intends on retiring in thirty years, requiring RM50,000 per year in addition to Employee Provident Fund (EPF). He plans to deposit the same amount each year into a Private Retirement Scheme (PRS), starting next year, with the last deposit when he is 65.

Benjamin expects to start withdrawing on his 66^th birthday. Benjamin believes that he can earn 5% per year on his retirement savings and that he will require thirty withdrawals, leaving nothing to his heirs.

You are required to:

1. Compute the amount in Benjamins retirement account when

Benjamin reached the retirement age.

4. marks)

2. Compute the amount of Benjamins annual savings to meet his retirement needs.
   4. marks)

3. If Benjamin also intends to buy a Mini Cooper for RM300,000 on his

66^th birthday, using his retirement savings, compute the amount of savings each year.

(7 marks)

4. Benjamin has initiated a standing instruction to his bank to deduct RM200 at the beginning of each month from his bank account for a unit trust investment. The rate of return is about 15% per annum. Compute the total value of the investment after 5 years.

(5 marks)

5. Benjamin also has invested in Sakura Bond. Sakura Bond is a 15year, RM1,000 par value bond that pays 5.5 percent interest annually. The market price of the bond is RM1,085. Compute the rate of return of the bond.

(5 marks)

(Total: 25 marks)