A cooperative group housing society wants to establish a sinking fund to accumulate Rs.25,00,000 in 3 years

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Question:

A cooperative group housing society wants to establish a sinking fund to accumulate Rs.25,00,000 in 3 years to repair the society fencing. The fund earns 12% interest compounded monthly. If there are 200 members in the society, how much such each member have to pay each month as a fair contribution to the fund?

B. I want to buy a refrigerator. The dealer tells me that I can pay Rs.500 a month for 36 months, or I can pay Rs.15,000 cash now. Assuming that the prevailing interest rate is 12% compounded monthly, which is the better deal for me?

C. Raj will retire this year, and will receive a pension of Rs. 25,000 each month till he or his spouse live. If the discount rate is 12%, what is the lump sum amount Raj should be willing to take today, in lieu of this monthly pension?