Choose one financial institution (e.g. Bank of Lloyds, TSB, etc.) and collect the details of one of their savings accounts and one of their fixed rate and variable rates mortgages (you can either visit one branch of your chosen financial institution or collect the information, if available, on the financial institution website). You should attach to your submission the details of the savings account and the mortgages.

1. Assuming that you deposit 15,000 today, how much money will you have in this savings account in 15 years? (10 marks)
2. Your friend John is considering buying a house. He has a 20,000 deposit and he will ask for a mortgage which he intends to repay with monthly payments of 1,000 for 30 years. Which house price can John afford? (20 marks)

Compare fixed rate with variable rate mortgage deals. Which type of deal is more likely to be chosen by a more risk-averse debtor? Why?