Question: Please do Q2. 5 and explain how to calculate the difference in intrest rates in conjunction with different rates of compound. Bucks Bank is offering

Please do Q2. 5 and explain how to calculate the difference in intrest rates in conjunction with different rates of compound.

Bucks Bank is offering two investment plans to its clients. The details of both plans are as follows. PLAN A: Monthly contribution R 2 500 at the beginning of each month Maturity date 31 December 2020 Expected maturity value R 165 000 Interest compounded Monthly PLAN B mm Investment date 1 January 2017 Maturity date 31 December 2021 Expected maturity value it 135 000 Interest compounded Annually 0 The Independent Institute of Education (Ptyl Ltd 2010 Page 4 of 9 13 2013 (1.2.5 Calculate the difference between the annual interest rates offered on both (61$) investment plans

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