Mr. Smith has saved RM1 800 each year for 20 years in Unit trust account. A year after the saving period ended, Mr. Smith withdrew RM7 500 each year for a period of 5 years. In the sixth and seventh years, he only withdrew RMS 000 per year. In the eighth year, he decided per year throughout the whole period. Q1 withdraw the remaining money in his account. The interest rate was 6% (a) Draw the cash flow diagram SK SK 7.5K 7.5K 7.5K 7.5K 7.5K 3 4 23 7. 26 27 20 21 22 24 25 28 1.8K 1.8K 1.8K (b) Determine the remaining amount of money that he can withdraw at the end of the eighth year
Mr. Smith has saved RM1 800 each year for 20 years in Unit trust account. A year after the saving period ended, Mr. Smith withdrew RM7 500 each year for a period of 5 years. In the sixth and seventh years, he only withdrew RMS 000 per year. In the eighth year, he decided per year throughout the whole period. Q1 withdraw the remaining money in his account. The interest rate was 6% (a) Draw the cash flow diagram SK SK 7.5K 7.5K 7.5K 7.5K 7.5K 3 4 23 7. 26 27 20 21 22 24 25 28 1.8K 1.8K 1.8K (b) Determine the remaining amount of money that he can withdraw at the end of the eighth year
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Mr. Smith has saved RM1 800 each year for 20 years in Unit trust account. A year after
the saving period ended, Mr. Smith withdrew RM7 500 each year for a period of 5 years.
In the sixth and seventh years, he only withdrew RM5 000 per year. In the eighth year,
he decided to withdraw the remaining money in his account. The interest rate was 6%
per year throughout the whole period.
Q1
(a) Draw the cash flow diagram
SK 5K
7.5K 7.5K 7 SK 7.5K
7.5K
4
6
26
27
20 21
22
23
24
25
28
1.8K 1.8K iSK
(b)
Determine the remaining amount of money that he can withdraw at the end of the
eighth year
1800 E, 6%, 20) (,6%,8) = 7500 (.6%, 5) (F. 6%.,3) + 5x (.6%, 2) +
5K (E, 6%, 1) + X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9a5207a1-fb49-46a6-9b4c-ef3f3dd359f6%2Fbd9445a4-43e8-41ba-ab27-9193bad1cd35%2Frq00mj_processed.png&w=3840&q=75)
Transcribed Image Text:Mr. Smith has saved RM1 800 each year for 20 years in Unit trust account. A year after
the saving period ended, Mr. Smith withdrew RM7 500 each year for a period of 5 years.
In the sixth and seventh years, he only withdrew RM5 000 per year. In the eighth year,
he decided to withdraw the remaining money in his account. The interest rate was 6%
per year throughout the whole period.
Q1
(a) Draw the cash flow diagram
SK 5K
7.5K 7.5K 7 SK 7.5K
7.5K
4
6
26
27
20 21
22
23
24
25
28
1.8K 1.8K iSK
(b)
Determine the remaining amount of money that he can withdraw at the end of the
eighth year
1800 E, 6%, 20) (,6%,8) = 7500 (.6%, 5) (F. 6%.,3) + 5x (.6%, 2) +
5K (E, 6%, 1) + X
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