Jacky would like to buy a new car in four years time. She is considering two options of savings to achieve this, either through depositing a lumpsum in a savings account or through regular deposits in a savings account. The estimated amount required to buy the car is $

Required

i How much lumpsum should Jacky deposit in the bank account today at interest pa to grow to the required amount? marks

ii How much should she deposit regularly at the end of each year at interest pa to achieve the required amount? marks

iii How much should she deposit regularly at the beginning of each year at interest pa to achieve the required amount? marks

Answer rating: 100% (QA)

I Lumpsum deposit amount required today Target amount in 4 years 24000 Interest rate 9 pa Number of ... View the full answer