A company intends to set aside funds to cover for the following future expenses payable during the next 15 years: • £500 payable monthly in arrears for the first 10 years; • £5,000 per year payable quarterly in arrears for the remaining 5 years. The first investment option the company is considering would pay an effective annual interest rate of 4.5% throughout the entire 15-year period. Alternatively, another investment plan that is available pays compound interest at the rates of: • • 3.6% per annum nominal convertible monthly for the first 5 years, and 6% per annum nominal convertible quarterly for the remaining 10 years. Calculate the following: (i) The amount of funds that the company would need to invest at t = 0 under these two options. (ii) The investment option the company should choose, and the corresponding amount of saving at t 0 it would make compared to using the other method. =