You have 20 weeks in which to save enough money to pay a $6000 fine. Starting in one weeks time you intend to make 20 equal weekly deposits into a savings account, which pays interest at j52 = 9.88% p.a.

a Represent the cash flows as a fully labelled time line diagram. [3 marks]

b Determine the size of the weekly deposit. Describe and perform a sanity check on your answer. [6+2 = 8 marks]

c Construct a sinking fund table for the last 3 weekly deposits. [8 marks]

d Immediately after your 10th deposit, you are granted a two week extension on the deadline for the fine. You decide to reduce the size of your weekly deposits. Determine the size of the new weekly deposit that you must make for each of weeks 11 to 22 in order to meet your objective of accumulating a total of $6000. [8 marks]