Question
Josh and Becky are each trying to save enough money to buy their own cars. Josh is planning to save $100 each fortnight. Becky plans
Josh and Becky are each trying to save enough money to buy their own cars. Josh is planning to save $100 each fortnight. Becky plans to save $150 each month, but she already has $1 500 saved. Joshs bank compounds interest fortnightly at 3.95% per annum. Beckys bank compounds interest monthly at 4% per annum. At the end of two years, they will each purchase a car. Formulas are provided on the last pages of this question booklet. Required: Show your workings! a. What will be the price of the car Josh can purchase? (7 marks) b. What will be the price of the car Becky can purchase? (8 marks) c. What bank offers the better interest rate? (7 marks)
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