Christopher wins$1000

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

Option 1: Aninterest payment of$15 every year.

• Option 2: An interest payment of2%
• 2%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

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

A trainer measures the average speed of several horses over distance of 1 kilometre. The following table is a summary of his findings. Speed, 40 45 50 55 60 V