Question
On 1 January 1998 , a person deposits R3 000 in a saving account at a rate of return of 10% per annum. On 1
On 1 January 1998 , a person deposits R3 000 in a saving account at a rate of return of 10% per annum. On 1 January 2000 , he deposits another R1 000 in that account. On 31 December 2000 , he closes the account and invests the total proceeds in another account on 1 January 2001 at a rate of return of 15%. How much will he have on the 31 December 2001?
Future-value Factors
| Period (n) | 5% | 10% | 15% |
| 1 | 1.0500 | 1.1000 | 1.1500 |
| 2 | 1.1025 | 1.2100 | 1.3225 |
| 3 | 1.1576 | 1.3310 | 1.5209 |
| 4 | 1.2155 | 1.4641 | 1.7490 |
| 5 | 1.2763 | 1.6105 | 2.0114 |
Discounting Factors
| Period (n) | 5% | 10% | 15% |
| 1 | 0.9524 | 0.9091 | 0.8696 |
| 2 | 0.9070 | 0.8264 | 0.7561 |
| 3 | 0.8638 | 0.7513 | 0.6575 |
| 4 | 0.8227 | 0.6830 | 0.5718 |
| 5 | 0.7835 | 0.6209 | 0.4972 |
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