SECTION A- MULTIPLE CHOICE

QUESTION 1

Sale man representative receive commission of $510 for sales of $2040. What was the rate of
commission?

Solution

In this case we have C=$510 and S=$2040

C=S×R
$510=$2040×R
$510
Which become? 𝑅 = 2040
=25%

Question 2
A local computer shop purchase a set of external drives for $750 each and selling them for $999.
Calculate the percentage mark up on the (nearest whole number).

Solution:
SP =C+M
$999 = $750 + M
M = $249

Since mark-up is on cost,

Mark-up rate = $249/$750
= 0.332 or 33.2%

Question 3
Tree friends had a meal at a local restaurant and shared the bill. Pamela paid twice as Mach as jenny and
Wilma paid 50% more than Pamela. If the total bill was for 36, how much did each person pay?

Solution
Let the amount paid for jenny (in dollars) =X. then amount paid for Pamela (in dollars) = 2X
And Wilma paid =50%

Jenny + Pamela = $36

Then: x + 2x = $36
3x = $36
3𝑋 $36
=
3 3

x =$12
 36
Therefore, jenny paid =$x =$12 and Pamela paid=$2x =$2(12) =$24 and Wilma paid=50% =
2
=$18

Question 4
A small canteen has a total sales of $524 000, total asset of $368 000 and gross profit of $300 000.
Calculate the total asset turnover (in two decimal place).

Solution
In this case sales=$524 000 and total assets = $368 000

𝑠𝑎𝑙𝑒𝑠
Total asset turnover = 𝑡𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠

524 000
=368 000
=1.42 (two decimal place)

Question 5
A retired nurse invest an amount of $600 for 15 month at an annual simple interest rate of 7.5%. Find
the maturity value of the principle (nearest whole number).

Solution
In this case P=$600. R=0.075 and T=1.25
I=P × R × T
=$600×0.075×1.25
=$56.25

S=P (1 + RT)
=$600(1 + 0.075×1.25)
=$600(1.09375)
= $656

SECTION B- SHORT ANSWER QUESTION

QUESTION 1
A parent stated saving account for the recent born son, john. If the parent deposit $25 a quarter for 18
years with ANZ bank student saving scheme, earning 10% p.a. interest compound quarterly, how much
will john have at the age of 18?

Solution
S = P (1 + I) n
P=$25
0.1
I=0.025( 4 )
N=72(18yrs×4)
S =????
S = $25 (1 + 0.025) 72
= $25 (5.91722806)
=$147.93en
QUESTION 2
How long would it take an investment of $25 000 to amount to $40 000 at a flat rate of 9.5% per annum?
Solution
In this case, P=$25 000, R=0.095 and I=$40 000 T= unknown
I=P × R × T
$40 000=$25 000 ×0.095×T
Which may be written;

T= $40 000
$25 000×0.095

=16.8
Therefore it will take 16 years and 8 month to earn a total interest of $40 000.

Question 3
Three friends (Joe, Kirsty and Pian) purchase an existing business for $1.2 million with the partner’s
contribution to the purchase price in the ratio of 5 to 8 to 11 respectively. The partners agreed
that profit would be distribute in the same proportion as their investment contribution. How much
would much each partner expect to receive if a profit of $135 000 was realized at the end of the
first years?

Solution
In this case the profit for Joe, Kirsty and Pian will be in the ratio 5:8:11. Hence we have:

5
Proportion of profit for Joe =
5+8+11

5
=
24

5
Amount received by Joe = 24
× $135 000

= $28 125

8
Proportion of profit for Kirsty = 5+8+11

1
= 3
 1
Amount received by Kirsty = × $135 000
3

= $45 000
Proportion of profit for Kirsty = 11
5+8+11

= 11
24

Amount received by Kirsty = 11 × $135 000

24

= $61 875

Question 4
A printer purchased 7 years ago for $750 is now worth $241. If the reducing balance method was used,
what is the rate of depreciation?

SOLUTION
In this case, original price=$750, annual depreciation= $241 and effective life=7years

𝐴𝑛𝑛𝑢𝑎𝑙 𝑑𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛
Annual rate of depreciation as % = 𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑐𝑜𝑠𝑡 𝑝𝑟𝑖𝑐𝑒
x 100%

$241
= $750 x 100%
=32%
Question 5

A mother pays $20 per day to the local council to sell ice-bula (in plastic cups) at the children’s park. It
costs mothers 80 cents for the ingredients, including the plastics cup of the one ice-bula. If the break-
even is 50 cup per day, what was the selling price?
Solution:
𝒇
X= 𝒔−𝒗
𝟐𝟎
X=
𝟏.𝟐𝟎−𝟎.𝟖𝟎
=50
S = $1.20 per ice-bula cup

Question 6

The book –value of a straight line depreciation 4-year machine is $6,000. If the machine originally cost
18,000, what is its useful life, assuming no residual value?
SOLUTION

7 year

SECTION C- LONG ANSWER QUESTION

QUESTION 1

A pop –corn seller propose to sell 1000 packet of pop- corn per week at a selling price of $2.00 per
packet of pop-corn. The estimate cost of ingratiation is $1.20 per packet plus rental fees of 50 per week
for hire of the pop-corn maker and a market fee of $150 per week, which is paid to the local council.
Calculate:

a) The cost of producing 100 packets of pop-corns.

Solution

F =$200 (50per WK + 150 per WK) V=1.20 S = 2.00 X=100

C =VX + f
C=1.20(100) +200
C = $320

b) The profit or loss if the seller sells 1000 packets of pop-corns.

Solution:
S=2 X = 100
I = S×X
I = 2 × 100
= 200
P = I-C
= 200 - 320
Profit/Loss = -$120 (loss)

c) With the aid of a graph, find the weekly sale that present the break –even point.
Solution:
The two equations,
Cost line: Y = 1.20x + 200
Income line: Y = 2x
𝒇
X= 𝒔−𝒗

𝟐𝟎𝟎
X= 𝟐.𝟎𝟎−𝟏.𝟐𝟎
=250

Break-even point is (250, 225,000), thus the company must produce and sell at 25,000 units to break-
even.
On the graph, the two lines should intersect at the above B.E point.
QUESTION 2
A local canteen owner wish to invest $50,000 with bank south pacific for a period of 5 years and the
bank offer choice , plan A and plan B. plan A, the manager would receive an annual interest rate of
8.30% compounded quarterly, while plan B offers an annual interest rate 8.25% compounded monthly.

a) Calculate the amount of interest she would receive under each plan.

Solution

Plan A, Plan B,
S = P (1 + I) n S = P (1 + I) n
P=$50,000 P=$50,000
0.083 0.0825
I=0.02075( ) I=0.006875( 12 )
4
N=20(5yrs×4) N=60(5yrs×12)
S =???? S =????

S = $50,000 (1 + 0.02075) 20 S = $50,000 (1 + 0.006875) 60

S =75,397.64 S =75,422.94

b) Which plan should the manager choose? Give reason (s) for your answer.

Solution

As you have seen the above calculation from the both plan, you will notice that the plan A is the better
package for the student, because the student will only invest less amount of ($75,397.64) to accumulate
for $%50,000 for 5years than the plan B which will invest higher amount of ($75,422.94) to accumulate
for $50,000 for 5 years.

QUESTION 3

A local printing firm purchases a new copier for $150,000 with a useful of 20 years. As part of the asset
management plan of the firm, any such equipment purchased must be resold after years to avoid repair
and maintenance costs which are usually high towards the ended of the useful life of such machines.
Assuming the Solomon island inland revenue division applies the diminishing value at fixed rate of 30%
more than the prime cost method
 a) Construct two 3-years depreciation schedules for each of the two methods (prime-cost and
reducing balance method.
solution
Solution:
b) S.L Method =10% R.B Method =14.5%
Year Depn Accum.Depn. B/V Year Depn. Accum.Depn. B/V
1 $7500 $7500 $142,500 1 $21,750 $21,750 $128,250
2 $7500 $15,000 $135,000 2 $18,596.25 $40,346.25 $109653,75
3 $7500 $22,500 $117,500 3 $15,899.79 $56246.04 $93753.96

c) Which method should the firm consider? Give reason(s) for your answer.

Solution
Reducing balancing method lesser accumulated depreciation expenses at the end of the 3 year
($15,899.79) and as well as bigger book value at the ended of the 3 year (for resell purpose)

QUESTION 4

Ferguson and his business partner Lilly undertake a mortgage of 40,000 from ANZ bank in order to
purchase a mini-van. The bank charge interest at a rate of 12% per annum, compounded quarterly over
20 years.

a) Calculate the quarterly repayment the partners have to make.

SOLUTION
S=40,000
R=??
I=0.03(0.12/4)
N=80 (4×20)
(1−(1+𝐼).−𝑁
$40,000= R 𝐼
(1−(1+0.03).−80
$40,000= R 0.03
$40,000= 30.20076345 R

R =$1324.47
b) What would be the outstanding balance at the end of the fifth year?

SOLUTION
S=??
R=$1324.47
I=0.03(0.12/4)
N=60 (4×15)
(1−(1+𝐼).−𝑁
A= R 𝐼
(1−(1+0.03).−60
A=$1324.47 0.03
A=$1324.47(27.67556367)
A=$36,655.45

c) How much interest has been paid at the end of the fifth year?

Total principle = 3,344.55($40,000 – 36,655.45)

Total payment= 26,489.40(1,324.47×20)
Amount of interest paid=23, 144.85(26,489.40 - 3,344.55)

Question 1:
Determine the break-even point for a company with fixed costs of $800,300 per annum with a
variable cost per unit of $6.45 if the product is to sell for $14 per unit. Use a graph to show your
answer.
Solution:
𝒇
X=
𝒔−𝒗
𝟖𝟎𝟎,𝟑𝟎𝟎
X=
𝟏𝟒−𝟔.𝟒𝟓
=106,000

Break-even point is (106,000, 1,484,000), thus the company must produce and sell at 106,000 units
to break-even.
On the graph, the two lines should intersect at the above B.E point.

Question 2:
The owner of a newly established company approaches you being an accounting student and asks
you to help him understand the break-even analysis. He informs you that the company’s total fixed
costs in the past two years are $100,000 per annum with a variable cost of $5 per unit and a selling
price per unit of $9. Illustrate via using a graph how many units the company must produce and sell
in order to cover its costs. Show also on the graph the profitability and loss areas.
Solution:
𝒇
X= 𝒔−𝒗

𝟏𝟎𝟎,𝟎𝟎𝟎
X= 𝟗−𝟓
=25,000

Break-even point is (25,000, 225,000), thus the company must produce and sell at 25,000 units to
break-even.
On the graph, the two lines should intersect at the above B.E point.
Question 3:
After completion of your studies, you have won a bid to open a ring-cake stall at SINU. SINU charges
you a fee of $140 per week. You employ your aunt to be your salesperson at the rate of $0.40 per
ring-cake sold and the total estimated costs of ingredients is $0.75. If you propose a selling price of
$1.50 per ring-cake,
(a) Calculate the total cost of selling 330 ring-cakes.
Solution
F =$140 V=1.15(0.40+0.75) S = 1.50 X=330
C =VX + f
C=1.15(330) +140
C = 519.50
(b) Find the profit (or loss) on producing 330 ring-cakes per week.
Solution
S=1.50 X = 330
I = S×X
I = 1.50 × 330
= 495
P = I-C
= 495 - 519.50
P = - 24.5 (loss)
(c) With the aid of a graph, determine the weekly sales that would enable a break-even for your
ring-cake business.
Solution
𝒇
X= 𝒔−𝒗
𝟏𝟒𝟎
X= 𝟏.𝟓𝟎−𝟏.𝟏𝟓
=400

Break-even point (400,600) – the company must produce and sell at 400 ring-cakes in order to
break-even.

Question 1:
A small business operating at a market sells toy watches that it purchases for $10 each from the
supplier and sells for $16 each. The cost of renting the stall at the market is $300 for an 8-hour day.
Calculate the minimum number of watches that the business would have to sell each hour to at least
break-even.
Solution:
𝒇
X= 𝒔−𝒗
𝟑𝟎𝟎
X= 𝟒𝟖
= 6.25 (6 watches rounded to nearest whole number)
B.E therefore is 100 units

Question 2:
A food stall sells sweet cakes at $1.20 each at the children’s park. A council fee of $20 was incurred
each day, which is paid to the local council, apart from the cost of the ingredients. If the break-even
is 50 cups per day, how much did the Mother pay for the ingredients?
Solution:
𝒇
X= 𝒔−𝒗
𝟐𝟎
X=
𝟏.𝟐𝟎−𝟎.𝟖𝟎
=50

VC = $0.80 per ice-bula cup

Question 4:
A bakery proposes to sell coconut buns at a selling price of $12.00 for each of bread that it sells. The
estimated cost of ingredients is $8.00 per bun. The machine for making buns has been leased for
$200 per week. The Bakery also pays a rental fee of $300 per week. Calculate:
(a) The total cost of producing 80 buns.
Solution:
F =$500 (200 per WK + 300 per WK) V=8.00 S = 12 X=80
C =VX + f
C=8(80) +500
C = $1,140

(b) The profit or loss if the seller sells 80 buns

Solution:
S=12 X = 80
I = S×X
I = 12 × 80
= 960
P = I-C
= 960 - 1140
Profit/Loss = -$180 (loss)

(c) With the aid of a graph, find the weekly sales that represents the break-even point
Solution:
The two equations,
Cost line: Y = 8x + 500
Income line: Y = 12x

(d) Use the formular (algebraically) to determine the break-even point

Solution
𝒇
X= 𝒔−𝒗
𝟓𝟎𝟎
X = 𝟏𝟐−𝟖
=125
TC = TR

$1500 = $1500

BU521 – REVESION QUESTION

DEPRECIATION
1. Using the diminishing-value method, what is the written-down value of equipment if:

The original cost was $75,000 at 22.5% depreciation p.a. at the end of the 2nd year?
SOLUTION
A=??
P=$75,000
I= 0.225
N=2
A = P (1 - I) -N
A =$ 75,000 (1 – 0.225) 2

A=45,046.88

The original cost was $52,000 at 37.5% depreciation p.a. at the end of the 8th year?
SOLUTION
A=??
P=$52,000
I= 0.375
N=8
A = P (1 - I) -N
A =$ 52,000 (1 – 0.375) 8

A=1210.72

2. In Australia’s 1999 Budget, the Ministry of Finance altered the depreciation allowance for buildings
from 4% to 2.5% p.a. (straight-line method). Over how many years a motel would be depreciated under
the new depreciation rate? Under the old rate
SOLUTION
Under the new 2.5% rate = 40 years and the old rate of 40% = 25 years

3. A hotel purchased a new van 7 years ago at a cost of $256,000. The van’s book value is now $21,083,
what rate of depreciation applies if it is calculated using the diminishing-value method?
SOLUTION
A=$21,083
P=$256,000
I=???
N=7
A = P (1 - I) N
$21,083 =$256,000 (1 – I) 7
=$21,083/$256,000(1 – I) 7
=
0.082355468(1 – I) 7
7
= 1-√0.082355468
= 30%

4. A local business applies depreciation rate of 37.5% p.a. (reducing-balance method) on its business
furniture. If the filing cabinet’ book value at the end of 3 years is $5, 859.38, what was its original cost?
SOLUTION
A=$5,859.38
P=???
I= 0.375
N=3
A = P (1 - I) N
5,859.38 =P (1 – 0.375) 3
5,859.38 =0.244140625P
P = 5,859.38/0.244140625

P=$24,000

5. A motor vehicle costing $6,000 is expected to have a trade-in value of $2,000 after 4 years. What is
the annual depreciation amount if calculated on a prime-cost basis?
SOLUTION
𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑐𝑜𝑠𝑡 𝑝𝑟𝑖𝑐𝑒 −𝑅𝑒𝑠𝑖𝑑𝑢𝑎𝑙 𝑣𝑎𝑙𝑢𝑒
Depreciation per annum = 𝐸𝑓𝑓𝑒𝑐𝑡𝑖𝑣𝑒 𝑙𝑖𝑓𝑒 𝑖𝑛 𝑦𝑒𝑎𝑟𝑠
6,000 −2,000
Depreciation per annum = 4
= $1,000
6. The book-value of a straight-line depreciated 6-year-old machine is $18,000. If the machine originally
cost $54,000, what is its useful life, assuming no residual value?
SOLUTION
A=$18,000
P=$54,000
N=???
N =$54,000/$18,000
= 3 + 6 year depreciation
Useful life 9 years

7. Equipment purchased two years ago for $94,500 with an estimated life of 12 years has no residual
value. Determine the depreciation for the third year using,
(a) The straight-line method
SOLUTION
Original cost price = $94,500
Effective life = 12 years
𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑐𝑜𝑠𝑡 𝑝𝑟𝑖𝑐𝑒
Annual depreciation = 𝐸𝑓𝑓𝑒𝑐𝑡𝑖𝑣𝑒 𝑙𝑖𝑓𝑒 𝑖𝑛 𝑦𝑒𝑎𝑟𝑠
$94,500
Annual depreciation = 12
= $7,875

(b) The reducing-balance method (assuming the reducing-balance method is 50% more than the rate
applied to the prime-cost method)
SOLUTION

$9,043.94

SIMPLE INTEREST, COMPOUND INTEREST & ANNUITIES

1. Find the simple interest earned on $10,000 deposited for 5 years and 4 months at 9.25% p.a.
SOLUTION
P=10,000
T=5.33(5+0.33)
R=0.0925
I=??
I=P×R×T
I=$10,000×0.0925×5.33
I=$4,930.25

2. Find the simple interest rate which will result in a principal of $5,000 amounting to $1,450 after
4 years.
SOLUTION
P=$5,000
I=$1450
T=4YRS
R=??
I=P×R×T
𝐼
R=𝑃×𝑇
$1450
R=$5,000×4
$1450
R=$20,000

R=7.25%

3. Calculate the future value of $10,000 invested at 10% p.a. compounded quarterly over 4 years?
SOLUTION
S=??
P=$10,000
I=0.025(0.1/4)
N=16(4×4YRS)
S = P (1 + I) N
S = $10,000 (1 + 0.025) 16

S=$14,845.06

4. How many interest rate periods are there if a deposit is compounded monthly over 3 years and
6 months?
SOLUTION
MONTHLY =6/12
=0.5
N=3+0.5
=3.5
TOTAL N=3.5×12
=42

5. A student bought a new vehicle by paying a deposit of $8000 and paying the rest at $250 a
month for 6 years. If current interest rates are at 9.5% p.a. compounded monthly, what is the
equivalent cash price for the vehicle?
SOLUTION
A=???
R=$250
N=72(6×12)
I=0.079166667(0.095/12)
(1−(1+𝐼)−𝑁
A= R 𝐼
(1−(1+0.007916667)−72
A= $250 0.007916667
A= $250(54.72050278)
A=13,680.13

A = $13680.12

Equivalent cash price=$21680.12 (13680.12+$8000)

Total repayment= $18000
Accrued interest=$ 4319.88($18000 - $ 13680.12)

6. How much must Mary invest in an account receiving 8% p.a. interest compounded quarterly in
order to accumulate $15,000 within 3 years?
SOLUTION
S=$15,000
P=??
I=0.02(0.08/4)
N=12(4×3YRS)
S = P (1 + I) N
$15,000 = p (1 + 0.02) 12
$15,000 =1.26841795 P
P=$15,000/1.268241795

P=$$11,827.40

7. A parent started a savings account for their daughter 18 years ago so that she would receive
$25,000 on her 18th birthday. What was the original principal if a 10% p.a. rate of interest
compounded quarterly applied at the time of the deposit?
SOLUTION
S=$25,000
P=???
I=0.025(0.1/4)
N=72(4×18YRS)
S = P (1 + I) N
$25,000 = P (1 + 0.025) 72
$25,000 =5.917228062 P
P=$25,000/5.917228062P
P=$4,224.95

8. A local contractor, Red Devil has been offered two road-maintenance work contracts by the MID
(Ministry of Infrastructure Development), one of which is minor maintenance to the Kukum
Highway road and the other is to tar-sealed the Bahai Highway road. The MID kukum Highway
road maintenance contract contained an offer equivalent to a $1,000,000 outright, while the
Bahai Highway contract stipulates payment of $130,000 every year for the next 15 years. If the
current return is 12% p.a. interest compounded annually, which of the two contracts offers a
better package? Assume that the $1,000,000 outright would be deposited in the 12% p.a.
compounded annually interest-bearing account.
SOLUTION
KUKUM HIGHWAY CONTRACT
S=???
P=$1,000,000
I=0.12
N=15
S = P (1 + I) N
S = $1,000,000 (1 + 0.12) 15

S =$5,474,565.76
Interest =$4473565.76 (5473565.76-$1000 000)

BAHAI HIGHWAYCONTRACT
S=???
R=$130,000
N=15
I=0.12
(1+𝐼).𝑁−1
S= R 𝐼
(1+0.12).15−1
S= $130,000 0.12
S= $130,000(37.27971466)

S = $4846, 362.91

Invested amount=$72695443.59($4846, 362.91×15YRS)

Interest =$72565443.59 ($130000- 7269544.59)

For my opinion, I will agree with the kukum highway road construction, because it will earn
bigger value ($5473565.76) at the end of the period and less interest compared to Bahai
highway which will earn less value ($4846362.91) and bigger interest at the end of the period.
 9. The furniture sold recently is to be paid off over 10 years at monthly repayments of $950. If the
$950 monthly payment is, instead, placed in a 12% p.a. compounded monthly interest-bearing
account, what would be the value of these deposits in 10 years?
SOLUTION
S=???
R=$950
I=0.01(0.12/12)
N=120 (10×12)
(1+𝐼).𝑁−1
S= R 𝐼
(1+0.01).120−1
S= $950 0.01
S= $950(69.70052203)

S =$218,536.76

10. A parent wants to help their son while he does his 4-year apprenticeship in Aircraft Engineering
in Australia. They would like him to be able to withdraw $900 every 3 months for the duration of
his apprenticeship. How much must the parent deposit today in an account bearing interest of
10% p.a. compounded quarterly?
SOLUTION
SOLUTIO
A=??
R=$900
I=0.025(0.1/4)
N= (4×4)
(1−(1+𝐼).−𝑁
A= R 𝐼
(1−(1+0.025).−16
A=$900 0.025
A=$900(13.05500266)

A=$11,749.50

11. John took a $70,000 mortgage loan at 10% p.a. interest compounded quarterly over 25 years.
(a) Calculate John’s quarterly repayments?
SOLUTION
S=70,000
R=??
I=0.025(0.1/4)
N=100 (4×25)
(1−(1+𝐼).−𝑁
$70,000= R 𝐼
(1−(1+0.025).−100
$70,000= R 0.025
$70,000= 36.61410526 R

R =$1,911.83

(b) What is the outstanding balance at the end of the ninth year of the above mortgage?
SOLUTION
S=??
R=$1,911.83
I=0.025(0.1/4)
N=100 (4×16)
(1−(1+𝐼).−𝑁
A= $1,911.83 𝐼
(1−(1+0.025).−64
A=$1,911.83 0.025
A=$1,911.83(31.76369148

A=$60,726.78

(c) Determine the amount of interest paid at the end of 9th year (refer to b above)
Total principle 9273.22($70,000-60,726.78)
Total payment 47795.79(1911.83×25
Amount of interest paid = (total principle – total payment)
38,522.57 = (9273.22 -47795.79)

$59,552.66
11. Anna wants to determine how much to deposit today in order to meet loan repayments of $288
per month for the next 15 months. If the current interest rate is 8% p.a. compounded monthly,
what lump sum should Anna deposit?

$4,098.05
13. A farmer borrowed $85,000 over 25 years at 13.5% p.a. interest compounded monthly. At the end of
seventh year, interest rates climbed to 15% p.a. compounded monthly and the farmer’s repayment
were revised to reflect this change and thus to allow him to complete the repayments by the end of the
25-year term.
(a) How much did the farmer owe at the end of the first 7 years?

$80,211.70
(b) What were his monthly repayments for the remaining 18 years?

$1,076.19
14. If 16.5 years have passed on a 25-year, $80,000 mortgage at 12% p.a. interest compounded monthly,
(a) What is the monthly repayment?

$842.58
(b) What is the outstanding balance?

$53,720.67
15. Calculate the future value of $100,000 invested at 9% p.a. interest compounded quarterly over 4
years. $142,762.15
16. What is today’s value of future sales of $14,992.96 earning 10% p.a. interest compounded quarterly
over 10 years?
$5,583.84 4

17. How much must Jason invest in an account receiving 8% p.a. interest compounded quarterly in order
to accumulate $15,000 within 3 years?
$11,827.40