Answer:
Nadia
a. Monthly deposit = RM169.86.
b. New monthly deposit = RM309.48
c. The value of X = RM22,393.57
Step-by-step explanation:
a) Nadia will need to contribute RM169.86 at the end of each period to reach the future value of RM20,000.00.
FV (Future Value) RM19,999.99
PV (Present Value) RM13,417.11
N (Number of Periods) 96.000
I/Y (Interest Rate) 0.417%
PMT (Periodic Payment) RM169.86
Starting Investment RM0.00
Total Principal RM16,306.76
Total Interest RM3,693.23
b) Contribution after two years = RM169.86 * 24 = RM4,076.64
Additional contribution required = RM25,923.36 (RM30,000 - 4,076.64)
Nadia will need to start contributing RM309.48 at the end of each period after two years to reach the future value of RM25,923.36.
FV (Future Value) RM25,923.34
PV (Present Value) RM19,216.00
N (Number of Periods) 72.000
I/Y (Interest Rate) 0.417%
PMT (Periodic Payment) RM309.48
Starting Investment RM0.00
Total Principal RM22,282.27
Total Interest RM3,641.08
c) Nadia will need to invest RM22,393.57 at the beginning to reach the future value of RM25,923.36.
FV (Future Value) RM25,923.36
PV (Present Value) RM22,393.57
N (Number of Periods) 3.000
I/Y (Interest Rate) 5.000%
PMT (Periodic Payment) RM0.00
Starting Investment RM22,393.57
Total Principal RM22,393.57
Total Interest RM3,529.79