What amount can be paid into a savings account at the end of each month, instead of R2062 and the beginning of every 6-month period, if interest is calculated at a rate of 1.482% per month? (Give your answer rounded to 2 decimal places. If you think the answer is R1012.3456, type in 1012.35)

To calculate the equivalent amount that can be paid into the savings account at the **end of each month**, instead of R2062 at the **beginning of every 6-month period**, we need to apply the **time value of money** concept, as well as take into account the compounding of interest. 

### Key information:
- **Interest rate per month**: 1.482%
- **Initial amount (at the beginning of every 6 months)**: R2062
- **Number of months in the period**: 6 months

We can use the following approach to find the monthly equivalent:

1. **Future value (FV)** of R2062 after 6 months:
   \[
   FV = 2062 \times (1 + 0.01482)^6
   \]

2. **Convert the future value (FV) to equivalent monthly payments (PMT)** using the **ordinary annuity formula**:
   \[
   FV = PMT \times \frac{(1 + r)^n - 1}{r}
   \]
   where:
   - \( FV \) is the future value after 6 months.
   - \( PMT \) is the unknown monthly payment.
   - \( r = 0.01482 \) (monthly interest rate).
   - \( n = 6 \) (number of months).

Let me calculate this for you.The equivalent monthly payment that can be made at the end of each month, instead of R2062 at the beginning of every 6-month period, is **R361.71**.

Would you like more details on the calculation or have any further questions?

Here are 5 related questions you may find useful:
1. How does compounding frequency affect the future value of investments?
2. What is the difference between ordinary annuities and annuities due?
3. How would the monthly payment change if the interest rate were different?
4. Can this method be used to calculate loan repayments as well?
5. What is the impact of increasing the contribution period on savings?

**Tip**: Always ensure you match the compounding period with the payment interval when solving financial problems to get accurate results.

What amount can be paid into a savings account at the end of each month, instead of R2062 at the beginning of every 6-month period, if interest is calculated at a rate of 1.482% per month? (Give your answer rounded to 2 decimal places. If you think the answer is R1012.3456, type in 1012.35)

Discover how to calculate the equivalent monthly payment of R361.71, replacing a biannual deposit of R2062 with interest compounded at 1.482% per month. Learn key concepts like the time value of money and annuity formulas, applicable for finance students.

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