Paul deposits $6,000 at the end of each year for 30 years in an account paying 6% interest compounded annually.

i) Find the final amount he will have on deposit.

ii) Paul’s sister works in a bank that pays 5.85% compounded annually. If he

deposits his money in this bank instead of the one above, how much will he

have in his account?

i

ii) How much would Paul lose over 30 years by using his sister’s bank?