SK Singh has been a resident of Thailand for the last twenty years. He owns a Spa there. His family includes his son, Satyam(10 years old)and daughter Sobhana(11 years old). The familycameto India to enjoy the kids' school vacation. Singh's wife had some plans related to their future financial plans before arriving in India.They want to completely relocate to India after 10 years.She expects that her son would be doing his Master's in Business Administration after 10 yearsin India. Son would need 20 lakhs for his first year in college and 25 lakhs for second yearat present rate.The family is planning for Sobhana's marriagewhen she completes21 yearsand want to earmark 3 crores for the wedding. For Satyam'sMBA, Singh has decided to open two recurring deposits, maturing on the 10thand 11thyears,respectively. For Sobhana'swedding, Mr. Singhwants to start a cumulative term deposit for 20 years. For family maintenance in India after 10 years, he wants to open another cumulative FD for 10 years with the maturity value of which he could immediately purchase an annuity due for the following 10 years. It is also expected that the family would need another 12 lakhs per yearfor maintenancewithout considering inflation.

The family has approached you to give your suggestions. Specifically, you are asked to calculate the amount that needs to be deposited now in:

a)The two recurring deposits, in the beginning of each month(10 Marks)

b)AcumulativeFD of meeting the cost of Sobhana's wedding(10 Marks)

c)A commutative FD with the bank for purchasing the annuity due needed by the family in India after 10 years from an insurance company which is expected to give a return of 10 per cent per year.(10 Marks)

You are also being provided with the following information:

For both cumulative FD and recurring deposit, a nominal interest rate for periods of more than 5 years is 8 per cent and compounding is done once in a quarter. Inflation in India after 10 years is expected to be 5 % for the next ten years. The MBA course expense are likely to grow by 5 per cent per annum.