Investing that $120,000 in a saving account for 15 years. There are two banks for her choice. Bank A pays a rate of return of 8.5% annually, compounding semi-annually. Bank B pays a rate of return of...

Investing that $120,000 in a saving account for 15 years. There are two banks for

her choice. Bank A pays a rate of return of 8.5% annually, compounding semi-annually. Bank B

pays a rate of return of 8.45 annually, compounding quarterly.

Investment 2: Putting exactly an equal amount of money into ANZ Investment Fund at the end

of each month for 15 years to get 330 000 she still shorts of now. The fund is offering a rate of

return 7% per year, compounding monthly.

Required: Molly is offered an investment that will pay $12 000 each year forever. How much should she

pay for this investment if the rate of return 12% applies?