Simon intends to apply for a Contributory Parent Visa for his parents to relocate to Australia. The current contribution fee is $100,000, and it increases by 2% per year

. a) If Simon submits his visa application 6 years from now, how much will the contribution fee be by then? [3 marks]

b) Simon plans to make equal annual deposits to save for the contribution fee as calculated in part a). If the savings account pays a yearly interest rate of 5% compounded annually, calculate Simon's annual deposit amount. [3 marks] 1 of15

c) Instead of making annual deposits, Simon would like to deposit quarterly, and the bank has also agreed to pay interest every quarter. Calculate the annual percentage rate that would make the bank indifferent between these two ways of paying interest.

d) If Simon makes quarterly deposits of $3000, with the first deposit being made now and the final deposit being made in 23 quarters, use the annual percentage rate calculated in part c) to compute the total amount he will accumulate 6 years later. [3 marks]

e) If the deposits are made at the end of each quarter for 6 years, will Simon need to deposit more or less than S3000 every quarter to accumulate the same amount as calculated in part d)? Without calculation, briefly explain why.