You want to go on a holiday in 7 years. The cost of a similar holiday today is R70 000 and the cost of the holiday increases by 5% per annum. If you can earn 11% per annum on a savings account, how much must you save per month as from today to have the money ready in 7 years time? You will save at the beginning of each month. R

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You want to go on a holiday in 7 years. The cost of a similar holiday today is R70 000 and the
cost of the holiday increases by 5% per annum.
If you can earn 11% per annum on a savings account, how much must you save per month as
from today to have the money ready in 7 years time? You will save at the beginning of each
month.
R
Transcribed Image Text:You want to go on a holiday in 7 years. The cost of a similar holiday today is R70 000 and the cost of the holiday increases by 5% per annum. If you can earn 11% per annum on a savings account, how much must you save per month as from today to have the money ready in 7 years time? You will save at the beginning of each month. R
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