Question 3

Annual income: RM10,000

Time period: 5 years
Sale proceeds at the end of the 5th year: RM100,000
Annual return requirement (discount rate): 10%

Year Income Sale Proceeds Discount Rate Discount Factor Present Value
1 10,000 10% 0.9091 909.09
2 10,000 0.8264 826.45
3 10,000 0.7513 751.32
4 10,000 0.6830 682.96
5 10,000 100,000 0.6209 6209.21
Total 9378.03

Question 4
Number of periods (N): 5 years
Periodic interest rate (I): 8% annually
Present value (PV): RM10,000
No periodic payments (PMT)

1 N 5
2 I 8%
3 PV 10,000
4 PMT
5 FV 14,693.28