A client would like to purchase a flatscreen TV and does not want to go into further debt, and so has decided to save for the TV. He can save R500 per month, so after six months he will have R3 000. If the R3 000 is invested with an interest rate of 7.5% per annum, compounded monthly, and he does not draw the interest, how much interest will he have after a year? Show all formulae and calculations. (4) If the same money is invested at 7.75% but is not compounded, how much interest will he have after a year? Show all formulae and calculations. (4) Based on your calculations, which would be the better interest rate to offer the client? Why? (2)