FM Soln 5
2
Q5. Ram's Case: Future value of savings at the end of 10th 2000 * ((1+7%)^10 - 1)/7% (annuity) 27632.9 Future value of savings at the end of 65th 27632 * (1+7%)^35 (lumpsum) 295024.9 Shyam's Case Future value of savings at the end of 65th 2000 * ((1+7%)^35 - 1)/7% (annuity) 276473.8 Ram is better off than Shyam by = 18551.11
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Transcript of FM Soln 5
Q5. Ram's Case:
Future value of savings at the end of 10th year = 2000 * ((1+7%)^10 - 1)/7%(annuity) 27632.9
Future value of savings at the end of 65th year = 27632 * (1+7%)^35(lumpsum) 295024.9
Shyam's CaseFuture value of savings at the end of 65th year = 2000 * ((1+7%)^35 - 1)/7%
(annuity) 276473.8
Ram is better off than Shyam by = 18551.11
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