Suppose, you deposit Rs 15,000 annually into a provident fund for the next 10 years after which time you plan to retire . a. If the deposit are made…

Suppose, you deposit Rs 15,000 annually into a provident fund for the next 10 years after which time you plan to retire.

a. If the deposit are made at the beginning of the year and earn an interest rate of 10 percent, what will be the amount of retirement funds at the end of year 10?

 b. Instead of a lump sum, you want to receive annuities for the next 20 years (year 11 through 30). What is the constant annual payment you expect to receive at the beginning of each year if you assume an interest rate of 10 percent during the distribution period? c. What implications you find from above calculations to derive benefits from provident fund? Explain.