<PRE><B>Question 1111420</B>
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.</PRE>