Rita wants to invest her savings in certain annuity plans. Amount to be invested is ₹ 2,00,000 per annum for next five years. The investment is expected to compound at 10% p.a. Calculate future value: (i) Assuming invest

(i) Assuming investment made at end of year Future Value = Investment X [(1 + return%) n - 1] / Return% Future value = ₹ 2,00,000 x [(1 + 10%) 5 - 1] / 10% = ₹ 12,21,020/- (ii) Assuming investment made at beginning of year Future Value = Investment X [(1 + return%) n - 1] / Return% X (1+r) Future Value = ₹ 2,00,000 x [(1 + 10%) 5 - 1] / 10% x (1+10%) = ₹ 13,43,122/-