In order to save for the deposit on a new well 3 years from now Jack and Jill decide to put $5000 into an interest bearing account which pays them 12%pa interest compounded monthly.
i)How much is in their account after 1 month?
ii)What is the amount of money in their account after the first year?
iii)What is the value after 3 years?
iv) A new well will cost them $8000. Will they have enough.
i)How much is in their account after 1 month?
ii)What is the amount of money in their account after the first year?
iii)What is the value after 3 years?
iv) A new well will cost them $8000. Will they have enough.