7. Leo makes one deposit today into his savings account earning an interest rate of 4% p.a. compounded quarterly. Which of the following is the correct number of years Leo needs to wait for his money to be doubled in the savings account? (2 marks) A 17 42 years B. 69.66 years C. 17.67 years D. More information is required to calculate number of years. 8. lan has drawn the below timeline for all the deposits and withdrawals he made to his savings account. The interest rate is 4% p.a. compounded quarterly. The bank balance is zero before and after all the transactions on the timeline. Which of the following equations can be used to find X? (2 marks) $ 2,200 9 Deposits Half-years Withdrawals A. 2200(1.01) + 3200(1.01) = 3500(1.01) + X B. 2200+3200(1.01)* = 3500(1.01) + X C. 2200(1.01) + 3200(1.01) = 3500(1.01) + X D. 2200+3200(1.04) = 3500(1.04)* + X(1.04)* 0.02 0.04 Loan X Years 0 Repayments X=(1-1.02-*)(1.02)- X=(1-1.04-)(1.04)- 1 1 A. X = B. X = C. X = 500(1-1.0404-)(1.0404)-2 D. X = X500 (1.0101 -1)(1.0404) 0.0404 0.3404 Jenny took out a loan of X from the bank today. She has drawn a timeline for the loan and all the repayments she needs to make in the future. The interest rate is 4% p.a. compounded half-yearly. Which of the following equations can be used to find X? (2 marks) 2 2 $3.200 3 4 $3,500 5 6 X 3 4 5 6 8 $500 $500 $500 $500 $500 $500