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Question 2 (8 marks) Kelly received a present of $4,000 from her grandaunt for her birthday that she is planning on investing in a fund

Question 2 (8 marks)

  1. Kelly received a present of $4,000 from her grandaunt for her birthday that she is planning on investing in a fund which earns 6 per cent each year. How much money can she collect in 3 years? 4 marks

Kattie wants to buy a car in 5 years and she must make a 20% deposit at that time. She will need $17,800 for the deposit. If she can invest at a rate of 7% annually, how much will she need to invest today?

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