Question

*Thabiso's parents opened an investment account when he was born, in which they deposit R5 000. They intend to withdraw the money on his 18th birthday. If the account earns 8% p.a. for the first 10 years and 6% p.a. for the next 6 years and 10% p.a. for the final 2 years, all compounded, how much money will Thabiso receive?​

Answer 1

Thabiso will receive R23,916.64 if his parents open an investment account with the given details and deposit R5 000 when he is born. The money will have earned 8% p.a. for the first 10 years, 6% p.a. for the next 6 years and 10% p.a. for the final 2 years, all compounded.