Lerato plans to buy a car in five and a half years' time. He wants to spend R160 000 on the vehi

First, we need to calculate the number of quarters in five and a half years. There are 4 quarter

Question

Lerato plans to buy a car in five and a half years' time. He wants to spend R160 000 on the vehicle. At the moment he has two saving accounts. In the first account he has R30 000. He has nothing in the second account but plans to make quarterly deposits into this account. His second savings account earns interest at a rate 10,75% per year, compounded quarterly. Lerato will deposit R3 595,00 into this account at the end of every three months starting three months from now. What will the amount in his account be after five and a half years? Select one: a. R105 970,74 b. R59 128,81 c. R25 196,39

          Lerato plans to buy a car in five and a half years' time. He wants to spend R160 000 on the vehicle. At the moment he has two saving accounts. In the first account he has R30 000. He has nothing in the second account but plans to make quarterly deposits into this account. His second savings account earns interest at a rate 10,75% per year, compounded quarterly. Lerato will deposit R3 595,00 into this account at the end of every three months starting three months from now. What will the amount in his account be after five and a half years? Select one: a. R105 970,74 b. R59 128,81 c. R25 196,39

Lerato plans to buy a car in five and a half years' time. He wants to spend R160 000 on the vehicle. At the moment he has two saving accounts. In the first account he has R30 000. He has nothing in the second account but plans to make quarterly deposits into this account. His second savings account earns interest at a rate 10,75% per year, compounded quarterly. Lerato will deposit R3 595,00 into this account at the end of every three months starting three months from now. What will the amount in his account be after five and a half years? Select one: a. R105 970,74 b. R59 128,81 c. R25 196,39

Added by Benjamin A.

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