So, I am trying to figure out how to formulate this question.
Q: Alex and Anna each need £10 per week to live on. They decide to ask their dad for a weekly allowance. Alex agrees that she will receive £10 each week for one year (52 weeks). Anna notes that she could receive 3% per annum effective interest if she puts money in a savings account and then took out £10 from the account each week. She therefore asks for £500 at the start of the year instead. The first £10 (i.e paid to Alex and paid out by Anna) is at the end of the first week.
a) Does Anna end the year in surplus or does she run out of money. And if she does end in surplus how much would it be at the end of year?
I keep getting £512.24, but this makes no sense as it has to be in surplus with the way the question is worded.
Any help is greatly appreciated!