Answer ALL questions Question 1 (a) Allen, a young auditor had been working for the last five years and wanted to buy his first house. His current take home pay is RM65,000 a year with a vehicle loan of RM32,000. He has saved RM12,000 as a down payment for his dream house and a total asset worth RM55,000. His annual expenditures is about RM55,000. Required: (i) Calculate Allen's net worth. (8 marks) (ii) What is Allen's monthly living expenses covered ratio? (5 marks) (iii) Is this monthly living expenses covered ratio adequate? (2 marks) (b) Lisa is planning to make monthly investment into two-unit trust product. Product A is promising a 3% non-taxable return. Product B is offering a 5% taxable return. Lisa highest tax bracket is currently at 15%. Which product should Lisa choose and why? (4 marks) (c) Briefly explain: (i) The "72 rule". (2 marks) (ii) Compounding. (2 marks) (iii) Which principle accurate describe this statement, A dollar today is not the same as a dollar tomorrow. (2 marks) [Total: 25 Marks)