Calculate the payments for options

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GenTech Ltd needs to save $50 million to expand its production lines in six years' time. There are three investment options to consider:

-ABC bank: monthly payments due at the end of each month. The interest rate is 3.5% p.a. compounding monthly.

-XYZ bank: annual payments due at the end of each year. The interest rate is 3.55% p.a.

-CDC bank: payments to be made at the end of year 2, 4 and 6. The interest rate is 3.56% p.a.

i. Calculate the payments for each of these options, (show all workings).

Reference no: EM132500969

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