Calculate the accumulated amount for a R1 500 monthly investment over 8 years, rounded to the nearest ten…

Question

Calculate the accumulated amount for a R1 500 monthly investment over 8 years, rounded to the nearest ten thousand. Also determine the number of months for R350 134 to accumulate with R1 000 monthly,

ScanSolve AI Tutor · Accepted Answer

Here are the solutions to the investment questions:

1.2.1)

Identify the accumulated amount from the table.
For an investment of R1 500 monthly for eight years, the accumulated amount is R525 202.
Round the amount to the nearest ten thousand.
The ten thousands digit in R525 202 is 2. The digit to its right (thousands digit) is 5. Since 5 is 5 or greater, we round up the ten thousands digit.
R525 202 rounded to the nearest ten thousand is R530 000.
$\boxed{\text{R}530\,000}$
1.2.2)
Locate the accumulated amount R350 134 in the table.
R350 134 corresponds to a monthly investment of R1 000 over a time period of 8 years.
Convert the time period from years to months.
Number of months = Number of years $\times$ 12 months/year
$\text{Number of months} = 8 \times 12 = 96$
The number of months for the investment to accumulate to R350 134 is 96 months.
$\boxed{96 \text{ months}}$
1.2.3)
Determine the investment period.
The child is 8 years old and needs the money at 18 years old.
Investment period = $18 - 8 = 10$ years.
Find the monthly investment amount that accumulates closest to R475 000 over 10 years.
Looking at the "10 years" column in the table:
- R500 monthly accumulates to R238 231.
- R1 000 monthly accumulates to R476 463.
- R1 500 monthly accumulates to R714 694. The amount R476 463 is the closest to R475 000.
Identify the corresponding monthly investment amount.
The present monthly amount the parents should invest is R1 000.
$\boxed{\text{R}1\,000}$
1.2.4)
Identify the accumulated amount for R500 monthly over ten years.
From the table, for R500 monthly over 10 years, the accumulated amount is R238 231.
Identify the accumulated amount for R1 500 monthly over ten years.
From the table, for R1 500 monthly over 10 years, the accumulated amount is R714 694.
Calculate the difference between these two accumulated amounts.
$\text{Difference} = \text{R}714\,694 - \text{R}238\,231$ $\text{Difference} = \text{R}476\,463$
The difference in the accumulated amounts is R476 463.
$\boxed{\text{R}476\,463}$

Calculate the accumulated amount for a R1 500 monthly investment over 8 years, rounded to the nearest ten thousand. Also determine the number of months for R350 134 to accumulate with R1 000 monthly,

Step-by-step solution

Identify the accumulated amount from the table.

Round the amount to the nearest ten thousand.

Locate the accumulated amount R350 134 in the table.

Convert the time period from years to months.

Determine the investment period.

Find the monthly investment amount that accumulates closest to R475 000 over 10 years.

Identify the corresponding monthly investment amount.

Identify the accumulated amount for R500 monthly over ten years.

Identify the accumulated amount for R1 500 monthly over ten years.

Calculate the difference between these two accumulated amounts.

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