Amy is going to need R145 000 in three years’ time, to pay for a holiday...
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Amy is going to need R145 000 in three years’ time, to pay for aholiday overseas. She immediately starts
to make monthly deposits into an account earning 11,05% interestper year, compounded monthly. Amy’s
monthly deposit is
[1] R3 384,18.
[2] R3 415,34.
[3] R4 027,78.
[4] R4 707,20.
[5] R4 750,55.
Amy is going to need R145 000 in three years’ time, to pay for aholiday overseas. She immediately starts
to make monthly deposits into an account earning 11,05% interestper year, compounded monthly. Amy’s
monthly deposit is
[1] R3 384,18.
[2] R3 415,34.
[3] R4 027,78.
[4] R4 707,20.
[5] R4 750,55.
Answer & Explanation Solved by verified expert
4.3 Ratings (970 Votes)
Solution The formula for calculating the Future value of savings at the end of n months with monthly compounding is FV P 1 r n 1 r Where FV Future value of savings P Periodic Deposit ie Fixed amount of Monthly deposit r monthly rate of interest
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