This mathematics problem involves applying core mathematical principles and formulas. Below you will find a complete step-by-step solution with detailed explanations for each step, helping you understand not just the answer but the method behind it.
ScanSolve AI Answer
Step 1: Identify the given values. 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%. Step 2: Convert the inflation rate to a decimal. i = (11.5)/(100) = 0.115 Step 3: Use the future value formula to calculate the cost after 5 years. The formula for future value with compound inflation is: FV = PV (1 + i)^n Substitute the given values into the formula: FV = 10000 (1 + 0.115)^5 FV = 10000 (1.115)^5 Step 4: Calculate the future value. FV = 10000 × 1.7200896 FV = 17200.896 Rounding to two decimal places for currency: FV = 17200.90 The course will cost R17 200.90 in five years time. R17 200.90 Send me the next one 📸