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Tutorial Grou 1 Question 2 30 31 8) A couple has a 6-year saving for an overseas vacation, It is estimated that they will nee 32 33 RM 13300 to cover...
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WhatsApp Image 2020-09-10 at 19.09.14.jpegWhatsApp Image 2020-09-10 at 19.09.14 (1).jpegQuantitative studies financial mathematics no1 and no2

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Tutorial Grou 1
Question 2
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31 8) A couple has a 6-year saving for an overseas vacation, It is estimated that they will nee
32
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RM 13300 to cover the airfare and other expenses for a week-long holiday. The couple n
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their saving consistently at the end of every month and it is expected to earn an
interest of 3.96% per annum compounded monthly.
35
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(1) Determine the values of the following components and hence calculate the monthly
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saving required.
(5 marks)
30
Type of investment
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The monthly saving required is;
(at least 5 decimal places)
42 b) A company is planning to invest in a project called MEGA which requires an investment
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RM 157900. The cost of capital is 11 8% and the estimated cash inflows are as follows
dit
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Year
Cash Flow (RM)
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23900
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37800
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49990
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48920
50
38290
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As a financial manager of the company, you are required to evaluate the profitability of
project and decide if the project is a worthwhile investment
(5 marks)
55
(at least 6 decimal places)
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Year
Cash Flow (RM) |Discount Factor Present Value (RM)
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mandatory
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1
23900
optional
2
37800
49990
48920
38290
NPV -
(at least 5 decimal places)
is the project worthwhil
Financial Mathematics
Ready
28
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eg. Compute 1+1.
Instruction: Answer all questions. Type your final answers without unit in the spaces provided.
ans
Question 1
a) Calculate the amount accumulated at the end of a 9-year investment if RM 9700 is
invested in an account that pays 2.6% p.a. simple interest for the first 5 years and 2% p.a.
simple interest for the rest of the years.
(2 marks)
15
During the first 5 years
During the rest of the years
6
Amount of interest earned
Total amount accumulated at the end of the investment
18
19 b) Calculate the amount accumulated at the end of a 13-year investment if RM 9600 is
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invested in an account that pays 3.96% p.a. compounded semi-annually for the first 4 years
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and 3.96% p.a. compounded monthly for the rest of the years.
(3 marks)
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23
h=
iz =
n2
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Type of investment
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Total amount accumulated at the end of the investment
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(at least 5 decimal places)
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28
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Question 2
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A couple has a b-year saving for an overseas vacation. It is estimated that they will need
12300
other expenses for a week long holiday, The couple mad

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