Principles of Finance:

Q3

1. A grandfather is giving two options to his grandson either take an investment of $100,000 today and invest it at the rate of 12% yearly OR take $175,000 after four years. Consider yourself as a financial advisor and advise grandson in detail that which option he must choose.
2. If the rate of investment changes to 15% what advice you will make to him.

Q4

Retirement Policy

1. Mr Jim retired from Nestle and received a sum of $900,000 on behave of service excellence. He opted to deposit it in Mutual Fund and enjoy yearly payments for next 15 years of his life. If the rate decided between them is 12% compounded annually. Find out what amount will he receive each year.
2. Visit the website https://www.jubileelife.com/insurance-plans/ and read about different plans. Suggest any sutiable plan for people retiring and looking for investment.