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
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
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 34P
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Question
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5655ad55-0567-4b48-ae92-8dd3e511998e%2F9fe57ae5-04ab-4c96-bd3d-2364ee273c88%2Fcbwhpg_processed.jpeg&w=3840&q=75)
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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