QUESTION 1
In three years' time Mada will need R145 000 to pay for her son's education. She immediately starts
to make monthly deposits into an account earning 11,05% interest per year, compounded monthly.
Mada's monthly deposit is
[1] R4 750,55
[2] R4 707,20
[3] R3 384, 18
[4] R4 027,78
[5] R3 415,34
CALCULATIONS
𝑆 = (1 + 𝑖)𝑅𝑠𝑛¬𝑖
0.1105 0.1105
145 000 = (1 + ) 𝑅𝑠3×12 ¬
12 12
𝑅 = 3 348,18
𝑀𝑎𝑑𝑎′ 𝑠 𝑚𝑜𝑛𝑡ℎ𝑙𝑦 𝑑𝑒𝑝𝑜𝑠𝑖𝑡 𝑤𝑖𝑙𝑙 𝑏𝑒 𝑅3 384,18
𝑂𝑝𝑡𝑖𝑜𝑛 3
In three years' time Mada will need R145 000 to pay for her son's education. She immediately starts
to make monthly deposits into an account earning 11,05% interest per year, compounded monthly.
Mada's monthly deposit is
[1] R4 750,55
[2] R4 707,20
[3] R3 384, 18
[4] R4 027,78
[5] R3 415,34
CALCULATIONS
𝑆 = (1 + 𝑖)𝑅𝑠𝑛¬𝑖
0.1105 0.1105
145 000 = (1 + ) 𝑅𝑠3×12 ¬
12 12
𝑅 = 3 348,18
𝑀𝑎𝑑𝑎′ 𝑠 𝑚𝑜𝑛𝑡ℎ𝑙𝑦 𝑑𝑒𝑝𝑜𝑠𝑖𝑡 𝑤𝑖𝑙𝑙 𝑏𝑒 𝑅3 384,18
𝑂𝑝𝑡𝑖𝑜𝑛 3
