Financial applications

Compound interest, depreciation and financial comparison

[Maximum mark: 6]Alice invests $\$12000$ into a savings account that pays an annual interest rate of $6.2\%$ compounded annually.(a) Write down a formula which calculates the total value of the investment after $n$ years.[2](b) Calculate the amount of money in the savings account after(i) $2$ years(ii) $5$ years[2](c) Alice wants to use the money to put down a $\$17000$ deposit on an apartment. Determine if Alice will be able to do this within a $6$-year timeframe.[2]