Question
Pn. Rohana plans to retire at the age of 50 years old. Therefore, she wants to have a pool of fund in order for her
Pn. Rohana plans to retire at the age of 50 years old. Therefore, she wants to have a pool of fund in order for her to continue her life. Today, in her saving account, she has RM250,000 and plans to invest the money by buying a common share from ABC Sdn Bhd with a price of RM100,000 and put the rest of her saving in a unit trust company. After doing few market surveys, Pn. Rohana believes she can earn 8 percent annually from ABC Sdn Bhd and 12 percent annually from investing in unit trust.
(a) Calculate the amount Pn. Rohana will have when she retires if her age today is 25 years old.
(b) Compute the amount that Pn. Rohana will have at her age of fifty, if she deposits RM8,000 at the end of every year in her unit trust account.
(c) Determine the amount that Pn Rohana need to save at the end of each year, if she only invests all her saving in unit trust fund and wishes to have RM10 million at her age of fifty.
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