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Micheal is thinking of living on a cruise ship after he retires in 20 years. He believes that he needs to save at least RM5 million by the 20th year for him to live a life of luxury. He recently bought a commercial property for RM960,000 and he needs to make instalment payment for it also for the next 20 years.
Question 1: Assuming the borrowing and savings rates, are the same at 12%. How much does he have to allocate every month so that he has enough to pay for the commercial property as well as enable him to save up to RM5 million at the end of the 20 years?
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