Robert Jones employer offers its workers two-month paid sabbatical every seven years. Robert who just started working for the firm plans to spend his sabbatical touring Europe at an estimated cost of K 25,000. To finance his trip,Robert plans to make six annual end of year deposits of K 2500 each,starting this year into an investment account earning 4% interest semi annually.
1. Will Roberts account balance at the end of seven years be enough to pay for his trip.
2. Suppose Robert increases his annual contribution to K3,150.How large will his account balance be at the end of 7 years?