question 1

(i) Zafrul will retire in 20 years. He wants to have an amount of RM15,000 available after 20 years. How much does he have to deposit today into a pension plan earning 7 percent annually?

(ii) You can buy a share of ownership in a partnership right now and you have been assured that you will be able to sell it for RM15,000 five years from now. Assuming your money is worth 5 percent, how much would you be willing to pay for this share today?