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Question 1 Fahmi joined Takaful Ukhuwah by paying RM400 per month. Takaful Ukhuwah, with a contract of mudharabah investment, has two accounts which are Participant
Question 1 Fahmi joined Takaful Ukhuwah by paying RM400 per month. Takaful Ukhuwah, with a contract of mudharabah investment, has two accounts which are Participant Special Account (PSA) and Participant Account (PA). The takaful offers the following PSA rates: Year PSA (%) First 100 Second -10 Third -40 Fourth -50 Fifth -60 Sixth to tenth -70 Eleventh onwards -80 * Initial percentage. Any positive or negative increment in the monthly rates shown above is based on the initial rate in the first year. After twenty five (25) years, Fahmi wants to terminate the takaful contract. Based on the above information, answer the following questions. (a) How much is the total amount of money that will not be returned to Fahmi? (4 marks) (b) Assume that Fahmi neither claims nor makes any withdrawal during the period of his contribution to the Takaful and his total investment profit for twenty five years is RM20,500 (one-off only). How much is the total amount of money that will be received by Fahmi after he closes the takaful account? (4 marks) Question 1 Fahmi joined Takaful Ukhuwah by paying RM400 per month. Takaful Ukhuwah, with a contract of mudharabah investment, has two accounts which are Participant Special Account (PSA) and Participant Account (PA). The takaful offers the following PSA rates: Year PSA (%) First 100 Second -10 Third -40 Fourth -50 Fifth -60 Sixth to tenth -70 Eleventh onwards -80 * Initial percentage. Any positive or negative increment in the monthly rates shown above is based on the initial rate in the first year. After twenty five (25) years, Fahmi wants to terminate the takaful contract. Based on the above information, answer the following questions. (a) How much is the total amount of money that will not be returned to Fahmi? (4 marks) (b) Assume that Fahmi neither claims nor makes any withdrawal during the period of his contribution to the Takaful and his total investment profit for twenty five years is RM20,500 (one-off only). How much is the total amount of money that will be received by Fahmi after he closes the takaful account? (4 marks)
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