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QCF 135University of Queensland Accounting Business Studies Worksheet

QCF 135University of Queensland Accounting Business Studies Worksheet

Question Description

Assessment 2

Assume that it is now three years later and Joseph has come to see you again for advice as he has inherited $20,000 from his Aunty Rose. Joseph has a low risk financial personality so wants to invest in a term deposit with the bank. He would like you to do the calculations on the best option and make a recommendation.

He has provided you with three investment options and wants you to make a recommendation.

Option 1: Invest $20,000 in a term deposit for 4 years at 5% interest per annum. No additional deposits.

Option 2: Invest $15,000 in a term deposit for 5 years at 6% interest per annum with a regular deposit of $50 per week.

Option 3: Invest $18,000 in a term deposit for 6 years at 7% interest per annum with a regular deposit of $50 per month.

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