What is the current encashment value of a unit-linked savings plan with 1,560 units, a current unit price of €1.55, and an encashment charge of 4% for the second year?

To determine the current encashment value of a unit-linked savings plan, we begin by calculating the total value of the units based on the current unit price. In this case, with 1,560 units at a current unit price of €1.55, the total value before any charges is computed as follows:

Total value = Number of units × Current unit price

Total value = 1,560 × €1.55 = €2,418

Next, we need to account for the encashment charge, which is 4% in this scenario for the second year. To find the encashment charge amount, we calculate 4% of the total value:

Encashment charge = Total value × Encashment charge percentage

Encashment charge = €2,418 × 0.04 = €96.72

The encashment value is then the total value minus the encashment charge:

Encashment value = Total value - Encashment charge

Encashment value = €2,418 - €96.72 = €2,321.28

This value, however, does not directly match any of the provided options. To clarify the discrepancy, it is possible that rounding or