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To calculate the annual payment that the investor will receive, we can use the formula for the future value of an annuity:
FV = Pmt * [(1 - (1 + r)^-n) / r]
Where:
FV = Future value of the annuity (R 85,000)
Pmt = Annual payment
r = Interest rate per period (8% or 0.08)
n = Number of periods (17 years)
85,000 = Pmt * [(1 - (1 + 0.08)^-17) / 0.08]
85,000 = Pmt * [(1 - 0.250905) / 0.08]
85,000 = Pmt * (0.749095 / 0.08)
85,000 = Pmt * 9.36367
Pmt ≈ R 9,081.46
Therefore, the annual payment that the investor will receive is approximately R 9,081.46.