Question 5

Mojo is saving for a European holiday in 4 years. He estimates that he will need $5,229 to cover his airfare and all other expenses for a week-long holiday. If he can invest his money in an ASX500 equity index fund that is expected to earn an average return of 12.4 per cent over the next 4 years, how much will he have to save every year, starting at the end of this year?

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Question 6

You are able to deposit $800 into a bank term deposit today, and you will withdraw the money once the balance is $1350. If the bank pays 7.5 per cent interest per annum, how long will it take you to attain your goal?

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