CASE 1 (20 marks):

Amirah is a 28-year old, working mother of one son, whos now employed as a supervisor in a company located at Seremban, Negeri Sembilan. Although she thoroughly enjoys her job and the people she works with, what she would really like to start her own business to generate better income and save up for her retirement. She plans to start her florist business in Port Dickson in about 8 years. After planning and estimation, she will need about RM50,000 in capital to do so. Given that she thinks she can make about 10% on her money, answer (a) and (b).

1. If shes starting from scratch, how much would she have to put away annually to accumulate the needed capital in 8 years? Given that Amirah has an idea of how much she needs to save, briefly explain how she could use an investment plan to help reach her objective.

2.How about if she already has RM10,000 funds; how much would she have to put away annually to accumulate the required capital in 8 years?