1. To pay for your University tuition fee, you need to save the total amount...
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1. To pay for your University tuition fee, you need to save the total amount of $25,000 at the end of 2020 (Assuming today is 01/01/2019). You are considering opening a deposit account at a bank. Currently, bank quotes are as followings: 3 months: 4% p.a 4 months: 4.01% p.a 8 months: 4.05% p.a 9 months: 4.06% p.a ANZ 6 months: 4.04% p.a 12 months: 4.07% p.a Westpac a. Which options yield the best interest for your savings? Which banks will you go for? b. How much money do you need NOW in order to earn $25,000 at the end of 2020, given the best rate that you have calculated in question (a)? c. Assuming that you currently have $15,000 to deposit into your bank account. How long will it take your account to grow to $25,000 given the best rate that you have calculated in question (a)
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