You want to purchasing a car, which you have estimated will cost $30,000 in three years. You currently have $5,000, which is not enough for your target. As an incentive for good grades in your finance course, your parents are proposing that they provide you with a lump sum at the end of each semester depending on the average grade over the semester. You parents will pay you the following amount at the end of each semester (2 semesters per year) for each of the grades: High Distinction $5,000；Distinction $4,000； Credit $3,000； Pass Level 1 or 2 $2,000
Your parents will provide the money at the end of the semester given your grade. Your $5,000 currently sits in a 6-month term deposit account that pays 6% per annum, compounding 6 monthly. You will place the money provided by your parents into this term deposit at the end of each semester to gain interest. If you can maintain your grade during the whole of your academic career, what grade you will need to maintain in order to purchase the car at the end of your academic career.
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