You are planning to invest in an endowment policy for your future savings. The agent has suggested two options. Option 1: Endowment plan term = 20 years Sum assured = 5 lakh Premium payable = 25,000 per annum (Starting from the end of Y1, to be paid till end of Y20) Bonus = 3.25 lakh (approximate) Maturity value = Sum assured + Bonus declared (which means that at the end of the 20th year, you will get a maturity amount of 5 lakh + 3.25 lakh = 8.25 lakh) Option 2: Endowment plan term = 15 years Sum assured = 5 lakh Premium payable = 20,000 p.a. (Starting from the end of Y1, to be paid till end of Y15) Maturity value = Only the sum assured of 5 lakh (no bonus) policy IRR Calculate the IRR of Option 1. 9.56% 4.98% 6.93% 7.00%