Question 8 In preparation for community road project, your Town Development Association is considering two different savings plans. The first plan would have the association deposit GHc550 every six months and would receive interest at a 7% annual rate, compounded semi-annually. Under the second plan the association would deposit GHc1.072 every year with a rate of interest of 7.5% compounded annually. (1) What is the future value of the first plan end of 10 years? [3 marks) (ii) What is the future value of the second plan at end of 10 years? [3 marks) (ii) Which plan should the association use, assuming that they are only concerned with the value of the savings at the end of 10 years? [1 mark] (iv) Which plan would be preferred if the rate of interest on the second plan changed to 7%. [2 marks]