Question 1111420: Helen needs R20 000 in three years’ time. What is the least amount that she should deposit now into an
account that offers an annual interest rate of 15%, compounded every 3 months, to have the required amount
by then? The answer, to the nearest rand, is ...
[1] R13 793
[2] R12 858
[3] R19 910
[4] R12 892
Open for correction please
S = 20 000
I = 15% / 15
N = 3 X 12
P = ?
= 20 000 / (1 + 0.15/12)*36
= 12 788.21
Answer by Alan3354(69443)   (Show Source):
You can put this solution on YOUR website! Helen needs R20 000 in three years’ time. What is the least amount that she should deposit now into an account that offers an annual interest rate of 15%, compounded every 3 months, to have the required amount by then?
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3 years = 12 periods
15%/yr = 3.75%/period
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FV = Future Value = 20000
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FV = AMT*(1 + Int)^t
20000 = AMT*(1.0375)^12
AMT = 20000/1.0375^12
AMT = 12858
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Your calculations would be correct for compounded monthly.
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