Dear tutor,I have solved one question(I have mentioned the solution of that question too because the question which I have is subsequent to it.Kindly,help me in solving the subsequent question.

The question I resolved is:

Q.If she chooses option 1, she believes she can invest 100,000 today and in addition, 600 each month in a financial product that offers 6% return. Assuming she plans to retire in 30 years, how much will she have saved up?

Solution:

Initial Investment PV = 100,000 Monthly investment P = 600 Monthly rate - 6 / 12 = 0.5% Number of months = 30 x 12 = 360

Future value of the investements = FV of the Monthly investmetns + FV of the Intial investment FV = P x [(1 + r)ⁿ - 1] / r + FV x (1 + r)ⁿ = 600 x [(1 + 0.005)³⁶⁰ - 1] / 0.005 + 100,000 x (1 + 0.005)³⁶⁰ = 602,709 + 602,258 = 1,204,967

In subsequent to this question,there is a question in which I have confusion.Kindly help me in solving this question.Would be glad.The question is:

QUESTION

Alternatively, if she chooses option 2, she will not be able to invest anything (other than what she invests in her apartment). She believes that the apartment will be worth approximately 1,200,000 in 30 years at which point she will have no debt. Which options provides the largest savings after 30 years?