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How much capital should they accumulate

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Question - Mr. and Mrs. Yung, both aged 48 and each with a life expectancy of 90, have a current annual household income of RM600,000. They would like to retire in 12 years' time on 70% of their current income adjusted for inflation. They also wish to leave an estate of RM3 million to their only daughter, Tina, upon their deaths. The inflation rate is expected to be 3% p.a. In order to achieve the Yungs' objectives, how much capital should they accumulate at age 60 if the expected rate of return is 8% p.a.?

A. RM 7.04 million

B. RM 7.29 million

C. RM 9.36 million

D. RM 10.08 million

Reference no: EM133067590

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