A child's parents deposit Rx into a savings account on the day of the child's birth to help towards her university education. The child will be able to withdraw regular half-yearly amounts from the savings account starting with a withdrawal of R12000 on her 19th birthday and ending with a final withdrawal on her 24th birthday. To keep up with inflation the withdrawals will need to increase at a rate of 6% p. each half-year from the second withdrawal onwards. If the savings account earns interest at a rate 8% p.a. compounded quarterly, then the value of Rx, to the nearest cent, that must be deposited initially into the savings account in order to fund the future growing withdrawals, is equal to: (Hint: Think carefully about where the Pv and Fv of the withdrawals is situated on the time line!) R120 468,80 R27 281,09 R26 746,17 R27 826,71 R25 427,36
