Hi Dear,

Please can you solve below finance question for me. I look forward to hearing from you soon.

Question-1

Muffin Megabucks is considering two different savings pans. The first plan would have her deposit $500 every six months, and she would receive interest at a 7 percent annual rate, compounding semiannually. Under the second plan she would deposit $1,000 every year with a rate of interest of 7.5 percent, compounding annually. The initial deposit with plan 1 would be made six months from now and, with plan 2, one year hence.

• What is the future value of the first plan at the end of 10 years?
• What is the future value of the second plan at the end of 10 years?
• WhichplanshouldMuffinuse,assumingthatheronlyconcerniswiththevalueofhersavingsattheendof10years?

Thanks