Answer:
R17,974.03 (round according to directions)
Explanation:
To calculate the future cost of the course in five years' time, taking into account the estimated inflation rate of 11.5% per year, we can use the formula for compound interest.
The formula for compound interest is given by:
A = P * (1 + r)^n
Where:
A = the future value (cost of the course in five years)
P = the present value (current cost of the course, which is R10,000)
r = the annual interest rate (in decimal form)
n = the number of years
In this case:
P = R10,000
r = 11.5% = 0.115 (converted to decimal form)
n = 5 (years)
Now, let's calculate the future cost (A):
A = 10000 * (1 + 0.115)^5
A = 10000 * 1.797402587890625
A ≈ 17974.03
So, the cost of the course in five years' time, with an estimated inflation rate of 11.5% per year, will be approximately R17,974.03.