Answer to Question #197939 in Financial Math for Beauty Magadlela

Question

Moshe will need R145 000 in three years’ time, to open a bakery. He immediately starts to make monthly deposits into an account earning 11,05% interest per year, compounded monthly. Moshe’s monthly deposit is

[1] R3 384,18.

[2] R3 415,34.

[3] R4 750,55.

[4] R4 027,78.

[5] R4 707,20. 

Answer 1

The following formula will be used to calculate the monthly deposit:

Calculate monthly deposit as follow:

Correct option is 2.