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a) En. Hareez plans to retire in 20 years time at the age of 60. Determine how much money that he needs to deposit today in order for him to be able to receive an annuity payment of RM1,800 per month for the next 20 years. He would also like to have the first payment at the beginning of the year. The annual interest rate offered by the market is 9 percent. (4marks)

b) MSE Properties has developed a vacation resort in Desaru, Johor ten years ago. The location of the resort is quite close to the newly built entertainment park, Desaru Coast Adventure Waterpark, which indirectly provides the opportunity for the resort to generate more cash flows. Find the present value of the resorts cash flows, which involving a RM50,000 received at the end of year 1, a RM30,000 received at the end of year 2, a RM20,000 cash outflow at the end of year 3, and RM60,000 received at the end of years 4 through 10, given the appropriate discount rate of 8 percent. (6 marks)

Question 5 a) En. Hareez plans to retire in 20 years time at the age of 60. Determine how much money that he needs to deposit today in order for him to be able to receive an annuity payment of RM1,800 per month for the next 20 years. He would also like to have the first payment at the beginning of the year. The annual interest rate offered by the market is 9 percent. (4 marks) 2 b) MSE Properties has developed a vacation resort in Desaru, Johor ten years ago. The location of the resort is quite close to the newly built entertainment park, Desaru Coast Adventure Waterpark, which indirectly provides the opportunity for the resort to generate more cash flows. Find the present value of the resorts' cash flows, which involving a RM50,000 received at the end of year 1, a RM30,000 received at the end of year 2, a RM20,000 cash outflow at the end of year 3, and RM60,000 received at the end of years 4 through 10, given the appropriate discount rate of 8 percent. (6 marks)

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