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Uwais and Ana is engaged and plan to buy a house in five years. Both have decided to save RM 500 from their salary every
Uwais and Ana is engaged and plan to buy a house in five years. Both have decided to save RM 500 from their salary every month and they plan to place a 20% down payment for their new house. Both have come to see you for an advice. a. Uwais and Ana has just found a very nice house in Putrajaya that is currently selling for RM150,000. Based on an inflation rate of 5% in the local real estate market, calculate the house value in 5 years? (2 Mark) b. Assume that they will need RM30,000 for his 20% down payment in 5 years. Which of the following is closest to the amount that he will have to save every year in an investment that pays 9%, compounded annually? (2 Mark) c. It is now 5 years later, Uwais and Ana has saved up enough money to make a 20% down payment on a new house. He will have to borrow RM135,000 at an annual rate 6% for 30 years, compounded monthly. What will his monthly payment be? (2 Mark)
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