Iris Ltd sells two types of share, A$++$ and A$+.$ Type A$++$ shares are sold with front$-$end load fee $($only$)$

of $6\%.$ Type A$+$ shares are not subject to front$-$end load fee but are charged to investment management

fee of $3\%$ per annum as well as exit $($back$-$end load$)$ fee that start at $10\%$ and reduce by $2\%$ for each full

year the investor holds the portfolio $($until the $5$

th year$).$ The annual rate of return for both types of share

is $12\%.$

$($a$)$ Calculate the value of Rs $1,500,000$ investment made by investor Mr$.$ Lotus in Type A$++$ shares

if the shares are disposed after $($i$)1$ year and $($ii$)3$ years.

$[8$ Marks$]$

$($b$)$ Calculate the value of Rs $1,500,000$ investment made by investor Mrs$.$ Orchid in Type A$+$ shares

if the shares are disposed after $($i$)1$ year and $($ii$)3$ years.

$[14$ Marks$]$

$($c$)$ As an analyst, which types of share will you recommend the investor to buy?

$[3$