Question 3 (15 marks)

Jason wants to a hot tub. The one he wants costs $23,000. He has $18,000 saved up so far. He will buy the hot tub in 3 years and can earn a rate of 3.25% compounded monthly. He will make with quarterly deposits of $125 at the beginning of the period.

a) Will he achieve his goal? (5 marks)

b) If not, what options does he have provide five options and calculate the outcome for each. (10 marks)