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Aira is planning to deposit RM10,000 today in Investment account that pays interest of 8% per annum. At the end of year 4, she plans to withdraw RM3,500. Calculate the amount of money she will have in the account at the end of year 10.

Aira is planning to deposit RM10,000 today in Investment account that pays interest of 8% per annum. At the end of year 4, she plans to withdraw RM3,500. Calculate the amount of money she will have in the account at the end of year 10.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 4TIF
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Tutorial 2 1. Mr Ridzuan Azli expects to receive RM1,000 at the end of the first year and second year, RM2,000 at the end of third year and RM4,000 at the end of the fourth year. How much is the present value of cash flow if the yearly interest rate is 10 percent per year? 2. Mr Mohamad Rashidi plans to save money for his tertiary education. He is going to deposit RM500 at the beginning of each year for the next 5 years in the bank which gives 6% interest. How much will he have after 5 years. 3. Rahimah invests RM500 in a saving account paying 12% interest per year compounded monthly. How much will Rahimah have in the account after 5 years. 4. Sofiane Zahri is planning to purchase condominium located in Ampang, Kuala Lumpur with the cost of RM750,000. He has approached Bank Muamalat for financing and the bank is willing to provide 80% financing. A balance of 20% down payment should be ready in the next three years. In regards to this, he needs to deposit sum of money as down payments assuming the interest rate is 10%. Determine: a) The amoun money to be deposit coday as down payment. b) The amount of money to be deposited each year for three years with the first payment is made today. 5. Aira is planning to deposit RM10,000 today in Investment account that pays interest of 8% per annum. At the end of year 4, she plans to withdraw RM3,500. Calculate the amount of money she will have in the account at the end of year 10.
Transcribed Image Text:Tutorial 2 1. Mr Ridzuan Azli expects to receive RM1,000 at the end of the first year and second year, RM2,000 at the end of third year and RM4,000 at the end of the fourth year. How much is the present value of cash flow if the yearly interest rate is 10 percent per year? 2. Mr Mohamad Rashidi plans to save money for his tertiary education. He is going to deposit RM500 at the beginning of each year for the next 5 years in the bank which gives 6% interest. How much will he have after 5 years. 3. Rahimah invests RM500 in a saving account paying 12% interest per year compounded monthly. How much will Rahimah have in the account after 5 years. 4. Sofiane Zahri is planning to purchase condominium located in Ampang, Kuala Lumpur with the cost of RM750,000. He has approached Bank Muamalat for financing and the bank is willing to provide 80% financing. A balance of 20% down payment should be ready in the next three years. In regards to this, he needs to deposit sum of money as down payments assuming the interest rate is 10%. Determine: a) The amoun money to be deposit coday as down payment. b) The amount of money to be deposited each year for three years with the first payment is made today. 5. Aira is planning to deposit RM10,000 today in Investment account that pays interest of 8% per annum. At the end of year 4, she plans to withdraw RM3,500. Calculate the amount of money she will have in the account at the end of year 10.
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