QUESTION THREE [20]

3.1 Your goal is to accumulate R30 000 after 17 years from now. How much must you invest now to have, at interest rate of 8% compounded semi-annually? (6)

3.2 Sabrina invested the money R 2500 at the end of every 3-month period for 5 years at 8% interest compounded quarterly.

3.2.1 How much is Sabrina investment worth after 5 years? (4)

3.2.2 If Sabrina had invested the money at the beginning of each 3-month period rather than at the end, how much would be in the account? (4)

3.3 Aisha Khan wants to accumulate R 80 000 in 5 years for a holiday in the Middle- East. If Aisha's bank is paying 12% interest compounded quarterly, how much must she deposit at each 3-moths period in a sinking fund to reach her desired goal? (6)