Jack has two grandchildren Mpho and Gugu. In his will he left them his estate worth R2 000 000 equally. They both invested a portion of their inheritance in an investment. Both of his grandchildren receives the same return, 10% per annum on their investments over a period of 20 years with a cash payment of R90 000 at the end of each year. Mpho invested his whole inheritance in the investment while Gugu also bought a car. Gugu will receive R500
000 at the end of the 20-year investment period but Mpho is unsure how much he will receive.
a) Calculate the cost of Gugu's vehicle. b) Calculate the value of Mpho's payment he will receive in 20 years.