Reference no: EM131251479
Mrs. Ramu has deposited $33,000 today in an account which will earn 10 percent annually. She plans to leave the funds in this account for seven years earning interest. If the goal of this deposit is to cover a future obligation of $65,000, what recommendation would you make to Mrs. Ramu?
Currently, Raja Bentan has RM50,000 in his fixed deposit account. He wishes to have RM250,000 at the end of 5thyear. If the bank interest rate is 5.5%, how much does he need to add up into his fixed deposit account?
Continued from the above question (#15), if Raja Bentan wanted to withdraw RM20,000 after 2 years, how much does he need to put in now to achieve his intention of getting RM250,000 at the end of the 5th year?
Ali borrows RM500,000 from Puspa and promises to pay back RM575,000 within a year. Ali invests half of the money in a quick-rich scheme which promises to give a return of 20% within a year. He put the rest of the money into a unit trust account which gives him 12% return after a year.
- What is the interest rate charged by Puspa?
- Can Ali repay his loan?
- How much is Ali's loss/profit?
- Is he making a good decision? Why?
- How do managers decide whether or not to invest in any particular investments?
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What is the interest rate charged by puspa
: What is the interest rate charged by Puspa? Can Ali repay his loan? How much is Ali's loss/profit? Is he making a good decision? Why? How do managers decide whether or not to invest in any particular investments?
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