Tut 7 2019
An annuity-certain was purchased on 1 November 1895 to provide 15 instalments, payable on 1 September 1986 and thereafter on 1 January, 1 May and 1 September until 1 may 1991 inclusive. The amount of the first instalment was R1000 and each subsequent instalment is 5% greater than its predecessor.
(a) Calculate the purchase price of the annuity-certain on the basis of an effective interest rate of 6% per annum.
This is what ive tried to do.