Puan Maryamah aged 40, is currently working as an executive with an international bank, Bank Americana. She contributes to Employees Provident Fund (EPF) and plans to retire when she reaches 55 that is 15 years from now. Based on terms of contract employment, her employer is to reward her RM100,000 if she manages to work with the bank until she reaches age 55. In addition to that, based on her computation, she estimates that her accumulated EPF savings will reach RM250,000 upon her reaching age 55. After retirement, her plan is to settle down in her village. This is due to the closeness of village environment to her heart as opposed to city's hectic life. She herself was originated from village and grew in a village environment surrounded with padi fields and canals. She has a very strong interest in a bird species named "burung ayam-ayam' that is abundance in the padi fields in her village. She owns assets comprising of few plots of padi field and a house inherited from her family. The house is located in the middle of the padi field and she is of the opinion that it is very suitable for a chalet homestay. She strongly believes that her homestay will attract strong demand especially from those who stay in cities and want to experience home stay in a middle of a padi field. She plans to rent the plots of padi field that she owns for growing padi and to renovate the inherited house into a homestay chalet after her retirement. She estimates that her padi plots and homestay chalet could generate rental income of RM1,500 per month by the time she retires If her monthly expenses after retirement is estimated to be RM2,700 per month, assuming her life expectancy is 15 years after retirement, is it possible for her to meet the monthly expenses amount based on the total savings available at retirement. Interest rate is at 4% per year. Suggest to Puan Maryamah the possible solution if her total retirement savings is not sufficient to meet the monthly expenses. Show your computation. Determine the present value of her EPF savings that will become RM250,000 next 15 years. Interest rate is at 4% per year. a) b)