QUESTION

Care facilities are expensive. Lee-Anns mother wants a single room with her own bathroom. The monthly estimated cost is R10 000, but her mother does not anticipate entering the facility for the next four years. Her life expectancy when she enters the facility will be three years. Currently she has R100 000 in assets that are earning 8.75% p.a. compounded monthly. How much must she invest monthly, for the next four years, to meet her anticipated financial needs? You can use excel to show your calculations.