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- University Of South Africa (Unisa)
explaining continuous compounding rate, present value of the loan, nominal rate, compounded weekly
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Kariem deposits R900 into a savings account paying 6,5% interest per year, compoundedquarterly. After three and a half years he withdraws R1 000 from the account and deposits it
into a second account paying 11% simple interest per year. How much is the total amount
accrued in the first account two years after withdrawing the R1 000? The correct answer,
rounded to the nearest rand, is
a.
R1 105.
b.
R128.
c.
R145.
d.
R605.
Questions 1 and 2 are based on the following information:
Kariem deposits R900 into a savings account paying 6,5% interest per year, compounded
quarterly. After three and a half years he withdraws R1 000 from the account and deposits it
into a second account paying 11% simple interest per year.
A number of years after Kariem deposited the R1 000 into the second account, the accrued
amount in the second account is R1 605. The time (correct to two decimal places) the
money was invested for, is
a.
4,36 years.
b.
4,53 years.
c.
9,31 years.
d.
5,50 years.
An effective rate of 29,61% corresponds to a nominal rate, compounded weekly, of
a.
29,61%.
b.
34,35%.
, c.
26,00%.
d.
29,53%.
Clear my choice
An investment of R20 000 accumulated to R45 200. If the applicable simple interest rate is
12% per year, then the time under consideration is
a.
10,50 years.
b.
3,25 years.
c.
7,19 years.
d.
4,65 years.
Anna won R165 000 and decided to deposit 65% of this amount in an account earning 8,25%
interest per year, compounded every four months. The accumulated amount after five years
is
a.
R161 110,84.
b.
R247 862,83.
c.
R151 490,63.
d.
R161 332,31.
Calculate the present value of a loan if R12 000 is due in five years’ time, at a simple
discount rate of 15% per annum.
a.
R5 324,46
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