Question

Question 4 Question Value: 7 Rinku has just finished her first year of university. She wants to tour Europe when she graduates in 3 years. By having a part- time job through the school year and a summer job during the summer, she plans to make regualr weekly deposits into a savings account, which bears 15% interest, compounded monthly (Assume there are four weeks in every month for this question). (a) If Rinku deposits $10 per week, how much will she save in 3 years (Round your answer to the nearest cent eg. X.XX)? $ Number [2/7] (b) If Rinku deposits $15 per week, how much will she save in 3 years (Round your answer to the nearest cent eg. X.XX)? $ Number [2/7] (c) Exactly how much does Rinku need to deposit every week if she want to save $4,300 in 3 years (Round your answer to the nearest cent eg. X.XX) $ Number [4/7] {Please note that you may retry this assignment up to 5 times. The grade of your best attempt for the entire assignment is the one that will be recorded for this assignment.}

Answer 1

Formula S = R((1+ i)^n-1/2) (1 + i) . S -. Future value of investment R - Regular Monthly investment Interest rate 12 n a number of months 4 meets R = $ 10 beer week & = $40 i = 15% per annum - 15 -> 1.25% 12 n = = = 0.0125 12 Month X 3 years 36 Mouth

S = 40[/(1+0.0125)^:36 -1) / 0.0125] 20140.mag) > 40 [[11-0125)^35 / 0.0125] x [1+ 0.0125) > 40 154463 / 0.0125] x 1.0125 > 40 [123.5704] x 1.0125 - 40 [125.11503) - 5004 (afforex

4 week R = = $ 15 bea week x $60 15 = 1.25 % - or 0.0125 n = 12 Minth X 3 years = 36 Monty F 3 - 60[111+ o.ovas)“ <36 - .)/ 0.0125] x [140.0125) - bo [1.0125) * 35)/0.0125] x (1.0125) - 6o (1.54463 / 0.0125] x [1.0123) = 60 [ 123.5104] x (1.0125) = 60 (las. 11503) - $7506.90 (apirox)

c) 300 S = $4300 R = ? i= 0.0125 n= 36 Mouth 4300 = R [((1+0-0125)^ 36 -1 / 0.0125) (1+0.0125) 4300 = . R [ (1.0125) "35 /0.0125), (64 1:0!23). 4500 = R [ 1.54463 / 0.0125) * 11.0125) 4.500 – R ( 123.5704] x [1.0125) 4300 = R ( 125: 11503) Weekly deposit = $36 4 mech