Raymond is 55 years old has saved nothing for retirement. He just inherited

Rm300,000 from his grandfather and wants to invest in a retirement plan. He

plans to put the money in an investment account earning a 9% return. He will

let the money accumulate for 10 years and when he will retire at age 65. He

would like to deposit enough money so that he can begin making withdrawals

of RM40,000 per year starting at age 66 and continue for 24 more years when

he turns 90. He wants the balance to be 0. After investing in his retirement

plan, Raymond wants to spend the rest of his money on a world tour.

a. How much money must Raymond invest to achieve his goals?

Construct a timeline to help visualize the details of this investment plan.

b. Suppose Raymond has changed his mind and invest the entire

inheritance into the account earning 10%. After making his last

withdrawal at age 90, he wants to leave the remaining money to his

niece. How much would his niece receive when Raymond withdraws the

last annual installment of RM40,00