Assume that you want to retire 20 years from now. Your objective is to establish a saving fund which help you to withdraw RM 20,000 for each year for 25 years during your retirement days. If the interest rate for the saving is 7% per year;

1) Draw the cash flow diagram involves and calculate how much money in the saving fund that is available for you to withdraw RM 20,000 for each year for 25 years?

2) Determine the present money (year 0) to be saved in order to achieve the aforementioned objective