Answer:
54.72 months
Step-by-step explanation:
Given:
Future value = R35,000
Annuity = R500
Interest = 11.32% per year
Interest per month, r = = 0.943% = 0.00943
Let 'n' be the total time in months taken
Now,
Future value of annuity is calculated using the formula as:
on substituting the respective values, we get
or
or
1.6601 = 1.00943ⁿ
taking log both sides, we get
log(1.6601) = n × log(1.00943)
or
0.22= n × 0.00402
or
n = 54.72 months
