201.

5 2U N orth Sydney Girls

David invests $3000 into his account at the beginning of every month to save up for
a deposit on his dream house in 5 years' time.
The contributions are compounded monthly at an interest rate of 9% per annum.

(i) Let An be the amount in the account at the end of n months. 2

Show that the expression for the amount in his account at the end of
the second year is

$3000x l · 0075(1·0075
24
-1)
A24 =---------~
0.0075

(ii) David requires $300 000 as a deposit in order to buy his dream house. 3
Two years after David started investing, he realised that he would not be
able to save $300 000 by the end of the 5th year.
For the remaining 3 years, David decides to invest $Kat the beginning of
each month at the same interest rate of 9% per annum, compounded monthly.

Find the value of K , to the nearest dollar, so that David will have enough
for the deposit by the end of the 5th year.
201.5 2U Sydney Girls

On 1st July 2015, Jessica invested $18 000 in a bank account that paid interest
at a rate of 5% p.a, compounded annually.

(i) How much would be in the account after the payment of interest on 1st [1]
July 2025 if no additional deposits were made?

(ii) Consider if Jessica made additional deposits of $1500 to her account

on the 1st July each year, beginning on 1st July 2016. After the
[3]
payment of interest and her deposit on 1st July 2025, how much was in
her account?
2017 St George Girls HS 2U

Annie was born on the 1 January 2000. Her parents invest $1000 on this day and
51

on every birthday thereafter. The interest is paid at 6% compounded annually.

After completing her HSC she decides to use the account to fund a gap year.
She withdraws all the funds on 31/12/17 (getting paid her interest for 2017).

(i) What is the value of the investment on the 31/12/01

(after the interest for 2001 is paid)? 2

(ii) How much does Annie collect on 31/12/17? 3