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4 [Maximum mark: 13] Almira is considering two different savings schemes. Both schemes involve an initial investment of
Posted: Wed Apr 06, 2022 9:10 am
by answerhappygod
- 4 Maximum Mark 13 Almira Is Considering Two Different Savings Schemes Both Schemes Involve An Initial Investment Of 1 (88.24 KiB) Viewed 56 times
4 [Maximum mark: 13] Almira is considering two different savings schemes. Both schemes involve an initial investment of $1000 in an account. In scheme A, at the end of each year $50 is added to the account. In scheme B, at the end of each year 4% compound interest is added to the account. a How much will be in Almira's account at the end of the fifth year after investment in i Scheme A ii Scheme B. Give your answer correct to two decimal places. b What annual compound interest rate would achieve the same outcome for Almira as investing in scheme A for five complete years? c Almira wants to invest for n complete years. For what values of n would Almira be better off investing in scheme B? d Almira estimates that there is 2.5% depreciation each year. How long would Almira need to save in scheme B to use her savings to purchase something currently valued at $1400?