Question: Q2: a) Differentiate between annuity and compound interest. b) A father at the time of birth of his daughter decides to deposit a certain

Q2: a) Differentiate between annuity and compound interest. b) A father at

Q2: a) Differentiate between annuity and compound interest. b) A father at the time of birth of his daughter decides to deposit a certain amount at the end of each year in the form of an annuity. He wants that a sum of Rs. 20,000 should be made available for meeting the expenses of his daughter's marriage which he expects to be solemnised just after her 18th birthday. If the payments accumulate at 8% compounded annually, how much should he start depositing annually?

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