Answer Happy

A government scheme requires those who partake to pay €500 at the end of each month, for a period of 60 months. In return, the investor receives 25% added by the government to the top of their own monthly contribution. At the end of the scheme, a single payment equal to the accumulated value of a series of monthly investments of €625 (the €500 + 25%, made at the time of payment of the €500) with interest applied at a fixed nominal annual rate of 1.2% convertible monthly, is returned to the investor Calculate the accumulated value at the end of five years, which will be paid to the investor. Write down the amount and timing of all payments and receipts involved in this scheme for the individual. Calculate the internal rate of return on this investment from the perspective of the investor. . .