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(5 marks) c) Answer the following questions: i. You invest RM10,000 today into retirement account. You expect to earn 11% compounded monthly, on your money

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(5 marks) c) Answer the following questions: i. You invest RM10,000 today into retirement account. You expect to earn 11% compounded monthly, on your money for the next 25 years. After that, you want to be more conservative, so only expect to earn 7%, compounded semiannually. How much money will you have in your account when you retire 40 years from now, assuming that this is the only deposit you make into account? (8 marks) ii. Assume that you just won the Open Golf Championship. Your prize can be taken either in the form of RM50,000 at the end of each of the next 25 years (That is RM1,000,000 over 25 years) or as single amount of RM500,000 paid immediately If you expect to be able to earn 5% annually on your investments over the next 25 years, ignoring taxes and other considerations, which alternative should you take? Why? (show your calculation)

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