QUESTION 1 Mr Abdul Wahid, an engineer, plans to retire in 25 years. Thus, he decides to make an investment for his retirement. He has the choice of either contributing RM2,400 at the end of every year for 25 years at 6% compounded annually or contributing RM200 at the end of every month at 6% compounded monthly. Determine a) b) c) the accumulated amount that Mr Abdul Wahid will have in 25 years if he makes annual contributions. (4 marks) the amount that Mr Abdul Wahid will have in 25 years if he makes monthly contributions. (3 marks) (3 marks) which investment that would earn a greater amount of interest.
QUESTION 1 Mr Abdul Wahid, an engineer, plans to retire in 25 years. Thus, he decides to make an investment for his retirement. He has the choice of either contributing RM2,400 at the end of every year for 25 years at 6% compounded annually or contributing RM200 at the end of every month at 6% compounded monthly. Determine a) b) c) the accumulated amount that Mr Abdul Wahid will have in 25 years if he makes annual contributions. (4 marks) the amount that Mr Abdul Wahid will have in 25 years if he makes monthly contributions. (3 marks) (3 marks) which investment that would earn a greater amount of interest.
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:QUESTION 1
Mr Abdul Wahid, an engineer, plans to retire in 25 years. Thus, he decides to make an
investment for his retirement. He has the choice of either contributing RM2,400 at the end of
every year for 25 years at 6% compounded annually or contributing RM200 at the end of every
month at 6% compounded monthly. Determine
a)
c)
b)
b)
c)
the accumulated amount that Mr Abdul Wahid will have in 25 years if he makes annual
contributions.
QUESTION 2
(4 marks)
the amount that Mr Abdul Wahid will have in 25 years if he makes monthly
contributions.
(3 marks)
(3 marks)
which investment that would earn a greater amount of interest.
Kumar decides to buy Proton X70 which costs RM128,800. He makes a down payment of
RM20,000 and the balance will be financed through a bank at 4.5% compounded monthly
Kumar agrees to pay back the loan by making equal monthly payments for 9 years.
a)
Calculate the monthly payments and the interest charged.
(4 marks
If Kumar fails to pay the first 2 monthly payments, determine the amount to be paid
on the third month to settle the outstanding arrears.
(3 mark:
CS/JANUARY2023/MAT112
If Kumar plans to settle the loan immediately after paying the 60th payment,
calculate the amount to be paid.
QUESTION 3
Amani bought an item from a furniture dealer
et price was RM4,999.28 and the transporta
6 August 2022 with cash terms 6/10, 2/1
Explain the cash discount
0, 2/
discounts
s were P
(3 mark
and 5%. T
oir
dat
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