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