Sunshine Industries (Sunshine) wishes to accumulate funds to provide a retirement annuity for itsvice president, Ms. Sofea. According to the contract, she will retire at the end of exactly 12years. Upon retirement, she is entitled to receive an annual end-of-year payment of RM42,000for exactly 20 years. If she dies prior to the end of the 20-year period, the annual payments willpass to her heirs. During the 12-year accumulation period, Sunshine wishes to fund the annuityby making equal annual end-of-year deposits into an account earning 9% interest. Once the 20-year distribution period begins, Sunshine plans to move the accumulated monies into an accountearning a guaranteed 12% per year. At the end of the distribution period, the account balance willequal zero. Note that the first deposit will be made at the end of year 1 and that the firstdistribution payment will be received at the end of year 13.
- Calculate how much must Sunshine accumulate by the end of year 12 to provide the 20-year, RM42,000 annuity. (5 marks)
- Compute, how large must Sunshine’s make for equal annual end-of-year deposits into theaccount for the 12-year accumulation period to fund fully Ms. Sofea’s retirement annuity.(Hint: use information question 2) (8 marks)
anyone can help me please!!????