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Sofea is considering two different savings plans. The first plan would have her deposit RM500...

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Finance

Sofea is considering two different savings plans. The first plan would have her deposit RM500 every six months, and she would receive interest at a 7 percent annual rate, compounded semi-annually. Under the second plan, she would deposit RM1,000 every year with a rate of interest of 7.5 percent, compounded annually. The initial deposit with Plan 1 would be made six months from now, with Plan 2, one year from now. What is the future value of the first plan and second plan at the end of 10 years? Which plan should Sofea use, assuming that her only concern is with the value of her savings at the end of 10 years? Show the workings to support your answer

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