Other interest

Task 1

Family V. wants to acquire a car in the value CZK 750,000.00. The family has available amount CZK 650,000.00 that is deposited in savings account with interest rate 3.5% p.a. In what time (calculate exactly the number of days from the beginning of calendar year) will the family save up for a new car? Le us suppose that the price of the car does not change during 5 years.
a) Interest charges are not taken into account.
b) Interest charges in the amount of 15% are taken into account.

Task 2

Investment company has available amount CZK 5,000,000.00 that can be spared for a certain time. The company decided to deposit money for this period in time deposit with the bank that offers two types of the account as follows:
a) Account with 4% annual interest rate with daily entering the interest accrued
b) Account with 4.3% annual interest rate with quarterly entering the interest accrued
What account do we prefer? In the calculation, apply effective interest rate.