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?
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?
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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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?
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