Jason invests R900 each month at 12% p.a. compounded monthly starting on the 1st January 2013, ending on 1st January 2020. How much will he receive immediately after his final investment?
Question 2
Peter needs R190 000 in 10 years’ time to study for 4 years at a university. What quarterly amount must his parents invest to pay for his university fees if they are offered 11% p.a. compounded quarterly for 10 years?
Question 3
Lumka secures a bond for a house. Interest is 11,5% p.a. compounded monthly over 20 years. She pays 18% of her monthly salary of R25 000 each month on her bond. Determine her bond amount.
Question 4
I need R75 000 to buy the car of my dreams. I have a choice of two finance agreements, both to be repaid in 48 equal monthly instalments: 1)14% p.a. simple interest or 2) 21% p.a. compounded monthly. Determine the equal monthly instalments of the two finance agreements and decide which option is the better one to take.
Question 5
Jack won R500 000, paid off his bond and invested R250 000 at 8,5% p.a compounded monthly. One month after the investment he made equal monthly withdrawals of R8 000 to cover his expenses. How long (to the nearest year) will his money last?
Question 6
Esihle takes out a loan of R120 000 at 17% p.a. compounded quarterly to start a business. He will repay the loan with equal quarterly payments over 5 years, starting 9 months after the loan was granted.
6.1 Determine the equal quarterly payments.
6.2 Determine the balance outstanding on the loan at the end of 3 years
Question 7
AA Photocopiers bought a Photostat machine for R150 000. It depreciates at 12% p.a. compounded half-yearly. The cost of a brand new machine appreciates at 4% p.a. compounded quarterly.
7.1 Determine the scrap value of the machine after 5 years.
7.2 Determine the cost a new machine in 5 years’ time.
7.3 A sinking fund at 9% p.a. compounded monthly is opened. The scrap value of the
machine will be used as a deposit. What equal monthly amounts must be invested to be able to buy the new machine in 5 years?
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