A friend of yours approached you and asked you to help him in his financial plan towards his wedding in five years from now

Finance Jan 14, 2021

A friend of yours approached you and asked you to help him in his financial plan towards his wedding in five years from now. If the wedding cost and expenses are valued at GHS 230,000 in the next five years, how many should he save monthly to be able to undertake the wedding? Prevailing discount rate is 15% for the first two years and 13% for subsequent years

Expert Solution

=230000/(1/(15%/12)*((1+15%/12)^(12*2)-1)*(1+13%/12)^(12*3)+1/(13%/12)*((1+13%/12)^(12*3)-1))
=2715.4720

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