Dr. Kauthar and Dr. Atikah are the best of friends since childhood. They grew up together and finally both graduated in medicine from Jordan University of Science and Technology in Irbid, Jordan. Both of them are attached to Hospital Changkat Melintang, Bota and occasionally become locum at Klinik Redza at the Universiti Teknologi PETRONAS. They are both 30 years old now. Their parents advised them to plan for their future with a stable career having enough money for their life expenses and retirement. It is always the objective of both Dr. Kauthar and Dr Atikah to have their own clinics, Klinik Atikah and Kauthar, one in Batang Kali, Selangor and the other in Seri Iskandar, Perak; their hometowns respectively. They plan to set-up the clinic in Seri Iskandar 20 years from now and the one in Batang Kali is expected to start 22 years from now. Each clinic will take 4 years to be fully set-up and established. Hence 22 years and 23 years from now, they are still in the process of setting-up the two clinics. The annual cost of setting up the clinic is as follow: Year Cost per Clinic (RM) 20 18,500 21 22.100 22 26,400 23 31,100 24 36,000 25 41,400 Dr. Kauthar and Dr. Atika plan to retire 30 years from now at the age 60. They plan to put RM 30,000 per year for the next 30 years into an investment account that earns 10% per year. This account will be used to pay for the setting-up costs for the clinics and provide for their retirement at age 60. Both of them decided to form a partnership and pool their financial resources together into a partnership escrow account. a) How much money will the partnership escrow account would have saved by the time they retire at the age of 60 if they decided not go ahead with their plan to set-up the two clinics? b) How much is the total value of the two clinics' set-up cost when the first clinic at Seri Iskandar is being set-up 20 years from now? c) How much money will the partnership escrow account have by the time they retire at the age of 60 if they pay for the set-up the two clinics? Dr. Kauthar and Dr. Atikah are the best of friends since childhood. They grew up together and finally both graduated in medicine from Jordan University of Science and Technology in Irbid, Jordan. Both of them are attached to Hospital Changkat Melintang, Bota and occasionally become locum at Klinik Redza at the Universiti Teknologi PETRONAS. They are both 30 years old now. Their parents advised them to plan for their future with a stable career having enough money for their life expenses and retirement. It is always the objective of both Dr. Kauthar and Dr Atikah to have their own clinics, Klinik Atikah and Kauthar, one in Batang Kali, Selangor and the other in Seri Iskandar, Perak; their hometowns respectively. They plan to set-up the clinic in Seri Iskandar 20 years from now and the one in Batang Kali is expected to start 22 years from now. Each clinic will take 4 years to be fully set-up and established. Hence 22 years and 23 years from now, they are still in the process of setting-up the two clinics. The annual cost of setting up the clinic is as follow: Year Cost per Clinic (RM) 20 18,500 21 22.100 22 26,400 23 31,100 24 36,000 25 41,400 Dr. Kauthar and Dr. Atika plan to retire 30 years from now at the age 60. They plan to put RM 30,000 per year for the next 30 years into an investment account that earns 10% per year. This account will be used to pay for the setting-up costs for the clinics and provide for their retirement at age 60. Both of them decided to form a partnership and pool their financial resources together into a partnership escrow account. a) How much money will the partnership escrow account would have saved by the time they retire at the age of 60 if they decided not go ahead with their plan to set-up the two clinics? b) How much is the total value of the two clinics' set-up cost when the first clinic at Seri Iskandar is being set-up 20 years from now? c) How much money will the partnership escrow account have by the time they retire at the age of 60 if they pay for the set-up the two clinics
