Q1. Mr. X has Rs. 75,000 to invest and an option of 2 schemes to invest in:- (5marks)

Scheme 1 offers a simple rate of interest of10 %

Scheme 2 offers a compounded rate ofinterest of 8%.

Which scheme he should invest in if he wants to withdraw money at the end of 2 years, 5 years. Show the amounts that he gets under both the schemes.

Q2.Your dad is 55 years old. A retirement scheme offers you a sum of Rs. 1000 every year till you turn 60. Assuming that the scheme invests your money at 5% per annum, how much should you invest in the scheme today?

Q3. Under a vehicle loan scheme provided by SBI, you need to pay an annual installment of Rs. 72,000 at the end of every year for the next 10 years. The scheme charges an interest rate of 9% per annum. Calculate the amount of loan that you will get from the scheme. (5 marks)

Q4. You are a retirement planner. Find out the annual premiums that your clients would be required to pay if they want an amount of Rs. 2.5cr on retirement if the premiums are invested atany of the below-mentioned interest rates for all the durations mentioned below:- (5 marks)

Period 20 years

25 years

30 years