Peter wants to save $500,000 to buy a sport car. He plans to make a deposit of $8,000 each month to achieve this goal. ABC Bank offers a deposit rate of 0.5% per month while DEF Bank offers a deposit rate of 6% with quarterly compounding.

a) Which bank should Peter choose? Briefly explain your answer with appropriate calculations [within 20 words].

b) After making the deposit into the chosen bank as mentioned in part (a), how long does Peter have to wait to achieve his goal if he starts making his first deposit i) today? ii) one month later? iii) six months later?

c) ABC bank has poor credit ratings and the management of the bank has recently offered higher saving interest rates to attract and retain new customers. Peter told you that he can