Question 1 Jesslyn inherited $10 000 from a relative, and is considering investing the money in...

 

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Question 1 Jesslyn inherited $10 000 from a relative, and is considering investing the money in a savings account. She sees the following accounts advertised. BANK Trust Bank Honest Bank ACCOUNT 2.75% per annum simple interest 2.5% per annum compound interest, compounding annually a. How much would her investment be worth after 5 years: i. in Trust Bank? ii. in Honest Bank? b. At the end of which year would the investment reach at least $12 000 in Trust Bank? C. Jesslyn would like to go travelling overseas in 5 years (from when she initially invests). She has calculated that she will need $15 000 to fund this. How much extra on top of the inheritance would she need to invest intially in Honest Bank to achieve this? Give your answer correct to the nearest hundred dollars. d. Use your calculator to answer the following: i. After how many years would the value of the Honest Bank investment be worth more than the Trust Bank investment? ii. What would the value of both investments be at this time? Question 1 Jesslyn inherited $10 000 from a relative, and is considering investing the money in a savings account. She sees the following accounts advertised. BANK Trust Bank Honest Bank ACCOUNT 2.75% per annum simple interest 2.5% per annum compound interest, compounding annually a. How much would her investment be worth after 5 years: i. in Trust Bank? ii. in Honest Bank? b. At the end of which year would the investment reach at least $12 000 in Trust Bank? C. Jesslyn would like to go travelling overseas in 5 years (from when she initially invests). She has calculated that she will need $15 000 to fund this. How much extra on top of the inheritance would she need to invest intially in Honest Bank to achieve this? Give your answer correct to the nearest hundred dollars. d. Use your calculator to answer the following: i. After how many years would the value of the Honest Bank investment be worth more than the Trust Bank investment? ii. What would the value of both investments be at this time?

Answer rating: 100% (QA)

Jesslyns Investment Analysis a Trust Bank Simple Interest Interest per year 10000 275 275 Total amou... View the full answer