T2 EIC 5 (Tutorial)

Upon

hearing that you are receiving a financial education, your parents call a

family meeting to include you in the discussion of some important financial

decision making. D

We are thinking of buying a new

house in 5 years. The bank estimates the deposit for what is in our price range

to be $100,000. They are also offering us a term deposit for 5 years to save up

for the deposit.

Mum pulls out the term-deposit

brochure and says... 

The interest on the term deposit

is 4.5% p.a. paid and compounded quarterly. But we don't know how much we need to invest

now so that we hit our deposit target.