Anu wants to put aside an amount at the beginning of each month while working for the next 5 years. At the end of the 5 years, she wants to start a business and she plans to have a budget for it of at least $50,000.

(i) How much should she put aside each month if interest payable on her savings is 1.5%p.a.? (Give your answer to 2 decimal places.)

(ii) If she would deposit the amount found at (i), each month, in perpetuity, what would be the present value of it?

Answer rating: 100% (QA)

i To calculate how much Anu should put aside each month to reach a budget of at least 50000 in 5 ... View the full answer