1. Tony Stark was the sole earner of his family. He became the parent of the daughter and named her Morgan Stark. He was very rich, however, considering the threat to his life due to involvement in risky undertakings he thought to invest in a children's investment plan within a few hours of Morgans birth. He received one offer each from an insurance company and an investment company.

• Plan 1 (Insurance + Investment plan): Tony was required to make a 1,820,000,000 dollars payment to the insurance plan every year for 17 years. When Morgan would complete 17 years, she will start receiving 580,000,000 dollars at the beginning of next year till the time she lives (e.g., if receives money after 18 years, Morgan will receive the first instalment when she will turn 19). The amount received by Morgan will increase by 500,000,000 dollars after the first 10 payments, i.e., from the 11^th payment, she will receive 1,080,000,000 dollars till the end of her life.
• Plan 2 (Investment plan): Tony was required to make 1,820,000,000 dollars payment with a financial company for 17 years. If Tony dies anytime during the 17 years, Morgan will receive the maturity amount based on the number of investments. Morgan will receive the amount when she turns one year more than 17 years.

Tony chose Plan 2. Unfortunately, Tony died after making 10 instalments and Morgan lived till 75 years (she died just before turning 76). Do you think Tony made the right decision? Use the knowledge you acquired in the course throughout the semester? Ignore administrative and other expenses. Assume the rate of interest to be 7+$ percent. Marks will not be awarded if you fail to show the required steps and logic to arrive at your answer. 10 Mark