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Calculate how much money did your grandparents originally

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Reference no: EM133004879

Your grandparents started putting some money in a trust fund for you on the day you were born. You are now 30 years old now and you plan to buy a factory worth RM 1,818,000 and you plan to take the money from the savings account to pay for the 20% deposit money for the first time. The account currently has RM 588,288 in it and pays 7% annual compound interest rate.

(a) Calculate how much money did your grandparents originally put into the account?

Note: You will need to show your calculations to earn full marks.

(b) Calculate how much money would be in the account if you left the money there till your 40th birthday, after making the 20% deposit for your factory at the age of 30 and it pays 8% annual compound interest rate?

Note: You will need to show your calculations to earn full marks.

(c) Your factory loan mortgage rate is 4% and you have secured a 30 years loan for your factor. Are you able to pay off your mortgage loan with the savings on your 50th birthday?

Note: You will need to show your calculations to earn full marks.

Reference no: EM133004879

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