Question 5) On your 21st birthday you receive $10,000 as a result of a deposit that your grandparents made on the day you were born. How large was that deposit if it earned interest at 6% p.a.?

Question 6) A one-bedroom unit in Darwin can be purchased now for $160,000 cash, or an $80,000 cash deposit today and $110,000 cash payable in five years. If interest rates are 9% p.a. compounding monthly, which method of payment is better? Explain.