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Introductory Financial Mathematics Department of Decision Sciences Assignment 02 for Semester 01 2022
Unique assignment number: Due Date: 14 March 2022
Question 1
Lindiwe decides that she would like to buy her daughter, Mbali, a car when she turns 21 in six years' time. She depos...
Unique assignment number: 185257
Due Date: 14 March 2022
Question 1
Lindiwe decides that she would like to buy her daughter, Mbali, a car when she turns 21 in six
years' time. She deposits R6 000 each month into an account earning 8,94% interest per year,
compounded monthly. The amount that Lindiwe (rounded to the nearest rand) will have
available six years from now is
In this problem we have equal payments in equal time periods (monthly), plus the interest
rate is specified as compounded, thus we are working with annuities. We need to determine
the future value of an ordinary annuity.
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