Q1: Cheng Lai can obtain a rate of return on his savings that will enable him to reach his target deposit, if he commits

[answerhappygod]

Q1: Cheng Lai can obtain a rate of return onhis savings that will enable him to reach his target deposit, if hecommits to a savings plan that runs for five years (rather thanthree) with no scope for early withdrawals. Identify two financialdisadvantages of waiting an extra two years before offering thedeposit to buy a first home. (4 marks)
Q2: How will Cheng Lai’s efforts to save for adeposit be affected if there is a sharp rise in interest rateswhich causes a fall in houseprices? (4 marks)