A course at university costs R10 000 rand. If a father wishes to do this in five years time, what will it cost him if the rate of inflation is estimated to be 11.5% p.a.?

The current cost of the course (Present Value, $PV$) is R10 000.
The time period ($n$) is 5 years.
The annual inflation rate ($i$) is 11.5%.

The formula for future value with compound inflation is:

Substitute the given values into the formula:

Rounding to two decimal places for currency:

The course will cost R17 200.90 in five years time.