Sunshine Industries wishes to accumulate funds to provide retirement annunity for VP.

Jrlim

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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.



  1. Calculate how much must Sunshine accumulate by the end of year 12 to provide the 20-year, RM42,000 annuity. (5 marks)









  1. 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!!????
 
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.

  1. Calculate how much must Sunshine accumulate by the end of year 12 to provide the 20-year, RM42,000 annuity. (5 marks)

  1. 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!!????
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