(a) Rashidah intends to buy a motorcycle for his son, Ahmad, on his 20th birthday 4 years from now. Based on her survey, the price of motorcycle is approximately at RM8,000. She plans to start save money in the savings account that pays 4 percent interest annually. Compute how much should she deposit today to buy the motorcycle.

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Q: Justine is thinking about purchasing an investment from RCBC Capital. If she buys the investment,…

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A: In this we need to calculate the present value of future needs.

Retirement Income

Retirement income is the income received by the retiring person after retirement. Income can either be paid every month or paid annually. The retiree would get a guaranteed income until their death. Retirement income payment differs from person to person based on their investment type and payment method. Some are paid on a lump-sum basis and some are paid in a regular series with fixed payment or variable cash flow. Retirement income can be created from retirement savings, investment, salary, bonus, and wages from employment. Every working individual should plan their retirement income according to their income goals for the future. The plan should be made by identifying suitable income sources, estimating future expenses, applying a savings plan, and managing risk and assets. The most common age for retirement is between 60-65 years.