Question-2.(2.5 marks)

Mr. Rafiq owes Mr. Ahmed Rs. 7000 to be due in 5 years and Rs. 15,000 to be due in 7 years. How much should Mr. Rafiq pay at the end of 6 years which may be acceptable to Mr. Ahmed if money is worth 8% compounded semi-annually?

Question-3.(2.5 marks)

Mr. Ghani wants to deposit his savings of Rs. 50,000 in a bank which offers 8% interest compounded semi-annually to withdraw Rs. 2,500 at the end of each six months from the date of deposit. How many withdrawals will he or his heir (in case of his death) be able to make before the entire amount is exhausted?