You will be needing RM18,000 to study in UNIRAZAK for 3 years. Your parents deposited RM5,000,...

You will be needing RM18,000 to study in UNIRAZAK for 3 years. Your parents deposited RM5,000, 10 years ago into an account that pays 6.5% p.a. How much fund will be accumulated?

You will be needing RM18,000 to study in UNIRAZAK for 3 years. How much should you parents deposited into an account that pays interest of 6% p.a., 10 years ago?

Expert Solution

1. Use FV fromula=present value*(1+rate)^n=5000*((1+6.5%)^10)=5000*1.877137=9385.69

2. Present value=Future value/(1+rate)^n=18000/((1+6%)^10)=18000/1.790848=10051.11

jeff jeffy answered 2 years ago

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