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Question 4 Adeel te an undergraduate student, he past tumed 20 years old and currently has to investments. He plans to save Rs. 11,000 from
Question 4 Adeel te an undergraduate student, he past tumed 20 years old and currently has to investments. He plans to save Rs. 11,000 from his pocket and invest this money at the end of each eight years, beginning in five years. The rate of retum on his inventa la 12% continuously compounded. Raina is 40 years old and planning to quit her job in the next 10 years, the just started to invest at the beginning of every year an equal amount of money starting today. She will invest for 10 years. The rate of return on his investment is 14 %, compounded quarterly. Requirements: Determine the yearly payment 'Raina' has to make in order to have the same Present value (PV) as Adeel (03 Marks)
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