John hopes to accumulate an amount of $75,000.00 by the end of Year 10.

Johns Grand-Mother gave John $10,000.00 on Day I of Year I as a birthday present.

On Day I of Year II, John invested the $10,000.00 at a rate of 6% for each year through Year 10.

Required:

(a) Will John be successful in achieving her goal of $75,000.00 by the end of Year 10? Why or why not.explain your answer. Show supporting calculations. {3 marks]

(b) At what rate of interest would John need to invest the $10,000 on Day I of Year II in order to achieve his revised goal of $100,000 at the end of Year 10? Show supporting calculations