Abraham, 28 years old has graduated five years ago from one reputable university in UK. His majoring in studies previously in Accounting and Finance and he plans to further his studies in Certified Financial Analyst (CFA) in order for him to have a good career path in market industry. The fee for CFA is almost RM6,000 for one module and he has to sit for three capital modules to complete the CFA certificate. Currently his salary is RM3,800 and every month he saves RM1,000 in his savings accounts at interest rate of 2% compounding monthly, invests RM250 per month in Private Retirement Scheme Fund (PRS) and RM200 per month in unit trust fund, pay premium of RM200 per month for life insurance. Recently, he invests about 50% of the bonus he received and invests in ABBA stock and the remaining he will save in Tabung Haji account (for pilgrime savings). The bonus received is five months of his salary. He assumed to receive the interest from ABBA stock RM500 in the first year, RM800 in the second year, RM1200 in third year and RM1,500 in fourth year. Currently, he has an online business and selling the man attire in Shoppe, Lazada and other media socials. His profits about 30% from his sales and his sales currently accumulated about RM120,000 since he starts the business two years ago and invest in LALA stock with the return of 25%. He also plans to buy a house worth RM600,000 and will pay deposit 50% of the house price. Required: 7. 6. How much the amount of his PRS if he saves at 15% compounding monthly at every beginning of the month at his age 55 years old? How much is the interest rate if he wants RM50,000 in his Tabung Haji account after 15 years?
Abraham, 28 years old has graduated five years ago from one reputable university in UK. His majoring in studies previously in Accounting and Finance and he plans to further his studies in Certified Financial Analyst (CFA) in order for him to have a good career path in market industry. The fee for CFA is almost RM6,000 for one module and he has to sit for three capital modules to complete the CFA certificate. Currently his salary is RM3,800 and every month he saves RM1,000 in his savings accounts at interest rate of 2% compounding monthly, invests RM250 per month in Private Retirement Scheme Fund (PRS) and RM200 per month in unit trust fund, pay premium of RM200 per month for life insurance. Recently, he invests about 50% of the bonus he received and invests in ABBA stock and the remaining he will save in Tabung Haji account (for pilgrime savings). The bonus received is five months of his salary. He assumed to receive the interest from ABBA stock RM500 in the first year, RM800 in the second year, RM1200 in third year and RM1,500 in fourth year. Currently, he has an online business and selling the man attire in Shoppe, Lazada and other media socials. His profits about 30% from his sales and his sales currently accumulated about RM120,000 since he starts the business two years ago and invest in LALA stock with the return of 25%. He also plans to buy a house worth RM600,000 and will pay deposit 50% of the house price. Required: 7. 6. How much the amount of his PRS if he saves at 15% compounding monthly at every beginning of the month at his age 55 years old? How much is the interest rate if he wants RM50,000 in his Tabung Haji account after 15 years?
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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Transcribed Image Text:Abraham, 28 years old has graduated five years ago from one reputable university in UK. His
majoring in studies previously in Accounting and Finance and he plans to further his studies
in Certified Financial Analyst (CFA) in order for him to have a good career path in capital
market industry. The fee for CFA is almost RM6,000 for one module and he has to sit for three
modules to complete the CFA certificate. Currently his salary is RM3,800 and every month he
saves RM1,000 in his savings accounts at interest rate of 2% compounding monthly, invests
RM250 per month in Private Retirement Scheme Fund (PRS) and RM200 per month in unit
trust fund, pay premium of RM200 per month for life insurance. Recently, he invests about
50% of the bonus he received and invests in ABBA stock and the remaining he will save in
Tabung Haji account (for pilgrime savings). The bonus received is five months of his salary.
He assumed to receive the interest from ABBA stock RM500 in the first year, RM800 in the
second year, RM1200 in third year and RM1,500 in fourth year. Currently, he has an online
business and selling the man attire in Shoppe, Lazada and other media socials. His profits about
80% from his sales and his sales currently accumulated about RM120,000 since he starts the
business two years ago and invest in LALA stock with the return of 25%. He also plans to buy
a house worth RM600,000 and will pay deposit 50% of the house price.
Required:
6. How much the amount of his PRS if he saves at 15% compounding monthly at every
beginning of the month at his age 55 years old?
How much is the interest rate if he wants RM50,000 in his Tabung Haji account after 15
years?
7.
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