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A company buys a delivery vehicle for R64000. The value of the vehicle depreciates by 14% p.a. whilst the price of a new vehicle appreciates

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A company buys a delivery vehicle for R64000. The value of the vehicle depreciates by 14% p.a. whilst the price of a new vehicle appreciates by 9% p.a. The company plans to replace the delivery vehicle with a new one in six years' time and the current vehicle will be sold in part payment in six year's time. The balance of the price for the new vehicle will be raised by making equal monthly deposits into a savings account starting one month from now and earning interest at a rate of 18% p.a. compounded monthly. The savings account must also A Question Progress A 02 28 account starting one month from now and earning interest at a rate of 18% p.a. compounded monthly. The savings account must also fund a maintenance service fee every three months, starting one year from now and ending six months before the new vehicle is purchased. The first service is R1500 and thereafter from the second payment onwards, the service fee increases by 4,8% p.a. compounded quarterly. The monthly deposits ( to the nearest cent) is R Question Progress A company buys a delivery vehicle for R64000. The value of the vehicle depreciates by 14% p.a. whilst the price of a new vehicle appreciates by 9% p.a. The company plans to replace the delivery vehicle with a new one in six years' time and the current vehicle will be sold in part payment in six year's time. The balance of the price for the new vehicle will be raised by making equal monthly deposits into a savings account starting one month from now and earning interest at a rate of 18% p.a. compounded monthly. The savings account must also A Question Progress A 12 28 account starting one month from now and earning interest at a rate of 18% p.a. compounded monthly. The savings account must also fund a maintenance service fee every three months, starting one year from now and ending six months before the new vehicle is purchased. The first service is R1500 and thereafter from the second payment onwards, the service fee increases by 4,8% p.a. compounded quarterly. The monthly deposits ( to the nearest cent) is R Question Progress

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