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b) Current and future resources earmarked for retirement purposes i) Give ONE (1) example of a non-income producing assets? (1 mark) ii) The following data
b) Current and future resources earmarked for retirement purposes i) Give ONE (1) example of a non-income producing assets? (1 mark) ii) The following data are taken from the statement of Net Worth as at 31th December 2013 for Mr. Know. 2 Extract from the table above those assets earmarked as Current Available Resources for retirement and then calculate their total future value (FV) at retirement if Mr. Know has 15 years to retirement? (4 marks) iii) Mr Know now want to calculate his Future Resources of Existing Accumulation Plans for retirement which involve regular contributions. He has plans to invest fixed sum of RM5,000 per year into a unit trust. If we assume number of years to retirement is 15 years, the rate of retum is 8%, what is the future value of this unit trust if this accumulation plan (annuity) starts immediately? (3 marks) iv) If the accumulation of the unit trust above is to start at the end of the year instead, what will the new value of future value be (increase or decrease) as compare to the value in iii)? (1 mark)
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