Question
Liza inherited Rs. 3,000,000 after her grandma passed away. She plans to invest this. She has three investment opportunities. - Plan A- Buying a 6
Liza inherited Rs. 3,000,000 after her grandma passed away. She plans to invest this. She has three investment opportunities. - Plan A- Buying a 6 perch land from Piliyandala one perch being Rs. 500,000. She expects the land value will increase by 10% per year. - Plan B- Saving money in an investment plan offered by leading commercial bank. She will get quarterly compounding rate of 6.5% per year and the money is to be fixed for 5 years. - Plan C- Investing in her brother in laws business. He promised to pay 12% biannually as long as she plans to keep her money in the business. i. Identify what is the most profitable option for Liza out of the three options. [03 marks] ii. What are the financial and other considerations for Liza when selecting a suitable option?
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