Syariqul Haq is trying to save up for a big vacation. He plans to take a triparound Japan when he graduates in four years. If he can earn 8 percentreturn on investment semiannually, calculate the amount that he needs todeposit every year to have RM10,000 upon his graduation.(b)Hakimi borrow RM15,000 education loan from Maybank. Payments are beingmade in instalments at the end of each year. He borrows for 10 years at aninterest rate 5 percent per annum. Calculate the amount that Hakimi has topayback for every year.

Savings refers to amount held by an individual after discharging all expenses as taxes, rent,…

Answered: (a) Syariqul Haq is trying to save up…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Banking. Josiah has an income of $137,000 that he is willing to spend over a year. If his bank account is giving him 6.12% and the cost associated for him to visit the bank is $6.80. How much should him withdraw per bank trip?
On the road to financial independence, Toby is planning to save and invest regularly. Toby decides to save $64 at the end of each month and invest the money into a financial instrument that gives him 6.3 percent per annum compounded monthly (after tax). How much will Toby receive from his investment (in $ after 10 years? Using information from previous question: If you expect to get $500,000 after 10 years investment, how much money ($) you have to set aside every end of the month?
Jennifer is planning a trip to Alaska in 5 years. She has calculated that she will need $15,000 to cover her expenses. Her bank offers money market investments at a rate of 4.5% compounded annually. What should Jennifer invest now to have the needed funds?
a) Ali is planning for his wedding with his fiancé Aliah. They believe they need RM30,000 for the ceremony to be held exactly three years from today. Aliah is planning to start depositing RM300 per month for the event beginning next month in a unit trust that would provide her 5% return per year on average. If Ali were to invest in another unit trust investment that will provide him 7% return per annum, how much should he invest every month beginning today to ensure that their savings will be enough in three years' time?
Oliver currently has $2,200 in a savings account paying 4.0% interest. He has a goal of taking a year-long around the world vacation. He has decided to deposit $150 from each paycheck (24 a year) for the next two years. Then he will leave on his vacation and withdraw an amount at the beginning of each month while he is on his cruise. How much will he be able to withdraw each month of his voyage?
13) Rachel wants to take a trip to England in 3 years, and she has started a savings account today to pay for the trip. Today (8/1/02) she made an initial deposit of $1,000. Her plan is to add $2,000 to the account one year from now (8/1/03) and another $3,000 to the account two years from now (8/1/04). The account has a nominal interest rate of 7 percent, but the interest is compounded quarterly. How much will Rachel have in the account three years from today (8/1/05)?
Mr & Mrs. John have decided to start a monthly savings program in order to provide for their son's college education. How much should they deposit at the end of each month in a savings account earning interest at the rate of 6%/year compounded monthly so that at the end of the tenth year the accumulated amount will be RM50,000?
Q5
A.)Your client has recently had a baby girl. He wants to set aside his annual bonus at the end of each year to pay her college costs in 18 years. He expects his bonus to be $5,000 per year and thinks he can earn 6% per year. How much will he have saved at the end of 18 years? B.) How much will he have saved at the end of 18 years if his bonus is received at the beginning of each year?
Mike is planning to take a Caribbean vacation in two years. In order to save money for the trip, he invests his $1200 tax refund. a. Bank 1 offers simple interest of 8 %. At the end of the two years of investment, how much will Mike have in his savings account if he chooses Bank 1? b. Bank 2 offers 3.5% compounded quarterly. At the end of the two years of investment, how much will Mike have in his savings account if he chooses Bank 2? c. If the trip costs $1,350. Is Mike going to be able to accomplish his goal? Which bank should he choose? Explain why.
To pay his university education, Mr. Ahmed is saving $ 1000, at the beginning of each year for the next 7 years in a Bank Muscat account paying 10% interest rate. How much will Mr. Ahmed have in that account at the end of 7th year? Mr. Ahmed need $ 17000 to pay his university fees in future, justify your suggestion to him regarding his investment in Bank Muscat?

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