a. Bryan wishes to invest $8000 in a fixed deposit account for one year. He has two options:

Bank A which offers 3.7% interest compounded semi-annually.

Bank B which offers 3.75% interest compounded annually.

Which bank should Bryan choose? Give your reason. (5 marks)

b. How much money do you have to deposit at the end of each month to reach a target sum of $500,000 in 30 years time? The expected interest rate will average no less than 9.0% p.a. and will be compounded monthly.(3 marks)