At the request of residents, the municipal council has agreed to build a footpath in front of each house.

The municipal council asks each property owner to make a contribution of AUD 3,000.

This money is to be paid in equal quarterly instalments over three years, at the nominal interest rate of 5 % per annum on any money, owing at the end of each quarter.

Express your answer to the nearest 2 decimal places.

1. Calculate the amount of money paid to the council by each resident each quarter. [3]
2. Find the cost savings if a resident paid the entire AUD 3,000 at once, rather than in instalment [3]