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You are a successful businessman. You are planning your finances for the next 10 years. You plan to make saving today so that it allows
You are a successful businessman. You are planning your finances for the next 10 years. You plan to make saving today so that it allows you to withdraw one year from now RM 2,000 savings every year for 5 years; and withdraw RM 4,000 savings every year in the sixth year until the tenth year. Consider the annual interest rate is 10%. (a) Draw your saving cash flow. (4 marks) (b) Calculate the amount of savings you need to make today (present value, P) to allow such situation in your savings cash flow to occur. (3 marks) (c) Calculate the future value (F) of your savings cash flow
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