Shona decides that he would like to buy his lovely wife, Connie, a new car when she turns 30 in six years’ time

Question 1
Shona decides that he would like to buy his lovely wife, Connie, a new car when she turns
30 in six years’ time. He deposits R6 000 each month into an account earning 8,94% interest
per year, compounded monthly.
The amount that Shona (rounded to the nearest rand) will have available six years from now
is
[1] R568 948.
[2] R573 187.
[3] R333 412.
[4] R335 896.
[5] R432 000.
In this problem we have equal payments in equal time periods (monthly), plus the interest
rate is specified as compounded, thus we are working with annuities. We need to determine
the future value of an ordinary annuity.
Shona will have R568 948 available

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