04-12-2011, 05:03 AM
[INDENT] Question # 2: (10 Marks)
Mr. Aamir is considering two different saving plans. The first plan would have his deposit Rs. 850every quarter, and he would receive interest at an 8% annual rate, compounded quarterly. Under the second plan he would deposit Rs.1,700 every six months with a rate of interest of 9%, compounded semiannually. Suppose the initial deposits with both the plans are made now.
Required:
(i) What will be the future value of annuity for the first plan at the end of 6 years?
(ii) What will be the future value of annuity for the second plan at the end of 6 years?
(iii) Which plan would be more feasible keeping the value of saving in consideration?
Please see the Attachment for Complete Assignment.
Also Discuss to make an idea solution [/INDENT]
Mr. Aamir is considering two different saving plans. The first plan would have his deposit Rs. 850every quarter, and he would receive interest at an 8% annual rate, compounded quarterly. Under the second plan he would deposit Rs.1,700 every six months with a rate of interest of 9%, compounded semiannually. Suppose the initial deposits with both the plans are made now.
Required:
(i) What will be the future value of annuity for the first plan at the end of 6 years?
(ii) What will be the future value of annuity for the second plan at the end of 6 years?
(iii) Which plan would be more feasible keeping the value of saving in consideration?
Please see the Attachment for Complete Assignment.
Also Discuss to make an idea solution [/INDENT]