In eight years' time a person wishes to pay cash for a car. He will require R350 000. He opens an investment account and earns 14% per annum compounded monthly. Payments start immediately and are made on a monthly basis.
(a) Find the monthly payments.
(b) At the end of the first year he pays an additional R15 000 into the account. One year later, he withdraws R20 000. Find the future value of the investment at the end of the eighth year. What is the shortfall amount?