Christopher wins $1000 in a competition. He decides to invest his money. His financial adviser gives him three investment options:

Option 1: Aninterest payment of$15

• Option 2: An interest payment of2% per annum, compounded annually.
• Option 3: An interest payment of1.6%per annum, compounded monthly.

(a)Calculate the value of Christopher's investment after5

years if he invests in:

(i)Option 1

(ii)Option 2

(iii)Option 3

[5]

Option 2 is a high risk investment compared to Option 3. Christopher decides to invest$400

$400in Option 2 and the rest in Option 3.

(b)Find the number of complete years Christopher will have to wait in order to earn at least$250 interest.

Christopher wins $1000 in a competition. He decides to invest his money. His nancial adviser gives him three investment options: I Option 1: An interest payment of $15 every year. I Option 2: An interest payment of 2% per annum, compounded annually. I Option 3: An interest payment of 1.6% per annum, compounded monthly. (a) Calculate the value of Christopher's investment after 5 years if he invests in: (i) Option 1 (ii) Option 2 (iii) Option 3 Option 2 is a high risk investment compared to Option 3. Christopher decides to invest $400 in Option 2 and the rest in Option 3. (b) Find the number of complete years Christopher will have to wait in order to earn at least $250 interest