Question 4
(a) Danish Naqiuddin, 25 years old college graduate wishes to retire at age 65. If he makes annual end-of- year RM2,000 deposit into the Employees Provident Fund (EPF) for his retirement which give 8 percent return for 40 years, compute the amount he will accumulate by the end of his sixty-fifth year.
(b) Michelle Anna borrows RM140,000 from Maybank Berhad to purchase a new edition of Proton X50 car. Assume that the bank charged an interest rate of 4 percent compounded annually on the loan for 9 years, calculate the instalment amount that she needs to pay every year.
(c) Dutch Lady Milk Industries Berhad is preparing a seven-year plan. Today, the sales amount is announced at RM1,000,000. The growth rate of sales is projected to be 9 percent over the next seven years. Compute the value of sales in seven years.
(d) Naufal Razziq saved his college allowance every day in a piggy bank. He deposited the collection of his savings which amounted at RM2,582.45 in RHB bank today. The bank offers an interest rate of 5 percent. Determine the amount he can withdraw from his savings if he plans to withdraw an equal payment for the next 4 years.
(e) Muzaffar Umar ‘s grandfather has just announced that he had opened a saving account for him with a deposit of RM10,000. Moreover, he intends to make another nine similar deposits for the rest nine years at beginning of each year. If the savings account pays 8 percent interest, determine the amount that he accumulated after 10 years.
