The owner of the business for which you work wants to invest some money. They are unsure whether they should put the money in an investment account that pays 6% interest per annum for a three year term (reinvesting the interest) and have asked you to calculate the amount that they would get at the end of the investment. They are investing their own money and the returns(s) will be subject to income tax even though the money will not be withdrawn until the end of the investment period because it is paid annually. The amount be initially invested is K800, 000. Using the provided information calculate the amount that the investment will return at the end of each period and the tax and Medicare levy that will be paid (to the nearest kina) arising from the investment. Resident income tax rates to be used (not including Medicare) are shown below. The Medicare levy is an additional 5%. Taxable income Tax on this income 0-K18,200 Nil K18,201-K37,000 19t for each K1 over K18,200 K37,001-K80,000 K3,572 plus 32.5t for eachK1 over K37, 000 K80,001-K180,000 K17,547 plus 37t for each K1 over K80, 000 K180,001 and over K54,550 plus 45t for each K1 over K180, 000

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