Question 1 (6 points)

Saved

(a) Assume you have an overseas trip planned in four years' time. If you put $800 per

month into a savings account at National Australia Bank (NAB) earning 1.5% p.a.

compounding monthly at the beginning of each month, how much will you have after

four years? (3 marks)

X

(b) How much interest will you have earnt over the period? (1 mark)

(c) What is the effective annual interest rate you will have earnt on your savings? (2

marks)

Paragraph

B

(Total marks: 3 + 1 + 2 = 6 Marks)

show full working on paper