Aina just got her driver license, and she wants to buy a new car cost for RM70,000. She has RM3,000 to invest as a lump sum today. Aina is a conservative investor and she only invests in safe products. After approaching different banks, she is offered the following investment opportunities: Union Bank's savings account with an interest rate 10.8% compounded monthly First State Bank's savings account with an interest rate of 11.5% compounded annually. i) Calculate how long it will take Aina to accumulate enough money to buy the car in each of the investment opportunities. ii) Explain which investment opportunity should be taken by Aina

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A:

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Q: What is the effective interest rate

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Q: Deb and Rusty have just gotten married and wish to buy a home. They both work in Boston and have a…

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Retirement Income

Retirement income is the income received by the retiring person after retirement. Income can either be paid every month or paid annually. The retiree would get a guaranteed income until their death. Retirement income payment differs from person to person based on their investment type and payment method. Some are paid on a lump-sum basis and some are paid in a regular series with fixed payment or variable cash flow. Retirement income can be created from retirement savings, investment, salary, bonus, and wages from employment. Every working individual should plan their retirement income according to their income goals for the future. The plan should be made by identifying suitable income sources, estimating future expenses, applying a savings plan, and managing risk and assets. The most common age for retirement is between 60-65 years.