Mr Van Niekerk wishes to travel to the Paris Olympics. He immediately opens a savings account...

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Mr Van Niekerk wishes to travel to the Paris Olympics. He immediately opens a savings account and deposits R 35 000 into the account. The account pays 18% per annum compounded monthly. He intends to put a further R 15 000 into the account at the beginning of the second (2nd) year. He will buy the flight and opening ceremony tickets at the end of the fourth (4th) year which is expected to cost R42 000 in total. REQUIRED: Q.2.6 Calculate the value in the account after buying the flight and opening ceremony tickets. Mr Van Niekerk wishes to travel to the Paris Olympics. He immediately opens a savings account and deposits R 35 000 into the account. The account pays 18% per annum compounded monthly. He intends to put a further R 15 000 into the account at the beginning of the second (2nd) year. He will buy the flight and opening ceremony tickets at the end of the fourth (4th) year which is expected to cost R42 000 in total. REQUIRED: Q.2.6 Calculate the value in the account after buying the flight and opening ceremony tickets.

Answer rating: 100% (QA)

We can solve this problem by first finding the future value of Mr Van Niekerks initial deposit of R ... View the full answer