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You have just opened a savings account which pays weekly interest at a rate of j52 = 4.85% p.a. You wish to accumulate $25,000 by

You have just opened a savings account which pays weekly interest at a rate of j52 = 4.85% p.a. You wish to accumulate $25,000 by depositing the same amount into the account at end of each week, for 70 weeks, starting in a week's time. a) Illustrate the cash flows associated with this saving scheme as a fully labelled time line diagram. [3 marks] b) Determine the required size for the weekly deposit, R. [4 marks] c) Describe and apply a sanity check for you answer in part (b). [2 marks] d) Construct a sinking fund table for the last two deposits.(Ensure that you show howyou obtained your starting value for the table.) Describe and apply a sanity check to your table. [5 marks] e) Immediately after your 50th deposit, the interest are falls to j52 = 4.60% p.a. Determine the size of the deposits you must make in weeks 51 to 70 in order to still make your target of $25,000.

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