1. You are concern on your retirement plan, therefore you meet up with your best friend who is currently the Director in an Investment Bank. Based on your discussion, your friend suggest you to invest in the bank investment package that offers the following returns:

For the 1st RM40,000 you invest, you will get a return of 20 percent. For the 2nd RM40,000 you invest, you will get a return of 17 percent. For the 3rd RM40,000 you invest, you will get a return of 14 percent. For the 4th RM40,000 you invest, you will get a return of 11 percent. For the 5th RM40,000 you invest, you will get a return of 8 percent.

Based on your portfolio, you noticed that you have RM200,000 fixed deposit maturing that you should be able to use for the retirement plan. However, you also have to pay for an house renovation that you did last month. The renovation cost you RM100,000.

Based on the Fishers Theorem, given the current rate of interest of 10 percent per annum:

1. Determine how much should you invest.

2. Calculate the optimum return you may generate from your investment and consumption decision.