Answer to Question #310977 in Financial Math for obed

Question

Lindiwe de ides that she would like to buy her daughter, Mbali, a ar when she turns 21 in six years' time. She deposits R6 000 ea h month into an a ount earning 8,94% interest per year, ompounded monthly. The amount that Lindiwe (rounded to the nearest rand) will have available six years from now is [1℄ R432 000. [2℄ R335 896. [3℄ R573 187. [4℄ R568 948

Answer 1

it's an annuity

$FV=6000(\frac{(1+0.00745)^{72}-1}{0.00745})=568948.33$