Sam is having two different saving plans option. The first plan would have his deposit Rs.10000 every six months, and he would receive interest at an 8 percent annual rate, compounded semiannually. Under the second plan, he would deposit Rs.20000 every year with a rate of interest of 8.5 percent, compounded annually. The initial deposit with the plan I would be made six months from now and with Plan 2, one year hence.
(a)What is the future value of the first plan at the end of 5 years?
(b)What is the future value of the second plan at the end of 5 years?

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Plan I Deposit each 6 month P10000 Interest rate is 8 compounded each 6 month 6 ... View the full answer