Gosh, I'm about to pull every bit of hair out of my head!.. Please help me??????..

If Rx is invested now, and at the end of every year for 4 years into an account that earns 7.2% interest per annum, compounded monthly. If the investment should grow to R20 000, calculate x. NB: a Hint is given to use a timeline?...

 

Ok,

x is invested now

In another 4 years another x is added to the account

Then another 4 years after that another x is added to the account.

etc,etc

 

The interest rate is    7.2% / 12 = 0.6% per month = 0.006

 

It grows to 20000 BUT you have not said how long it takes to grow to 20000.

 

Hence information is missing and this question cannot be answered !

 

Maybe you forgot to put something ?

Since the interest rate is compounded monthly and the payments are made annually, we must adjust the interest rate from monthly compound into annual compound. Therefore, 7.2%=7.44%.

The annual payments required each year to have an investment of 20,000R at the end of four years is calculated to be 4,475.16R.