• Your good friend Ciara Darby is putting all her savings together and planning to purchase a villa in Ajman in 15 years.
• She believes that the purchase price of the house will be $1,600,000 when the time comes to buy the property.
• The bank requires a property buyer to put down a 25% down payment at the time of buying a property.
• The remaining amount toward the purchase price of the house will be mortgaged by the bank.
• Ciara currently has a personal account at ADCB, into which she receives her monthly salary, that pays a 6% interest rate per year.

1. Determine the amount of money that Ciara needs to invest into her ADCB bank account today in order to reach

her goal of buying a home in the future.

2. Calculate the amount of money that Ciara will need to invest into her ADCB bank account at end of each year,

with the first payment starting a year from now, in order to reach her goal of buying a home in the future.

3. Estimate the amount of money that Ciara will need to invest into her ADCB bank account at beginning of each year,

with the first payment starting today, in order to reach her goal of buying a home in the future.

4. Compute the size of the loan that Ciara will need to get from ADCB at the time of issuing a mortgage.
5. Determine whether Ciara will have enough money in her ADCB bank account at the time of buying a property,

if from now till then Ciara can save and deposit into the bank 15% of her annual salary of $110,000.

Explain if this amount will be enough for Ciara to buy the property she currently has in mind.