In4 years time, they intend buy a 3 bedroom house in Caulfield to live in. They intend to spend $1,440,000 to buy their house.

Task 2:

Given the deposit Mr and Mrs Monash must pay in the future, they also task you with finding a good investment to help them save.

We use 1.4% interest rate for the term deposit.

Mr and Mrs Monash have the following conditions and needs for the term deposit you present to them:

(if you breach the conditions below, -2 marks will be deducted for each breach)

They require interest to be calculated and paid monthly

Mr and Mrs Monash have $80,000 to investment today

a)Given what Mr. and Mrs. Monash have to invest today, apply financial math and calculate the future value of investing in your recommended term deposit today,

for when Mr and Mrs Monash need to buy their house. (show your formula, substitution and working, missing financial math will result in a -4 mark penalty)

b)Do Mr. and Mrs. have enough now, to pay for their deposit in the future? If yes, by what percentage are they over their deposit.