Question 1
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... is the interest earned on a given deposit that has become part of the sum at the end of a specified period.
a.
Simple interest
b.
Compound interest
c.
The interest rate
d.
The internal rate of return
Questi...
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Question 1
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Question text
... is the interest earned on a given deposit that has become part of the sum at the end of a specified
period.
a.
Simple interest
b.
Compound interest
c.
The interest rate
d.
The internal rate of return
Clear my choice
Question 2
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At what annual interest rate must a single amount of R5 000 be invested for 5 years to yield
approximately R7 500?
a.
7.20%
b.
10.76%
c.
8.45%
d.
9.86%
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1|Page
, Question 3
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Ben Johnson has arranged for a 60-day loan at an annual interest rate of 7.5% per annum. If the loan
amount is R1 000 000, how much interest will Mr Johnson pay in rand terms? (Assume a 360-day
year.)
a.
R25 000
b.
R75 000
c.
R0
d.
R12 500
Question 4
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Calculate the difference between the following two investment proposals.
(a) R1 401.82 invested annually for five successive years at 9% per annum.
(b) R5 209.22 invested for five years at 10% per annum compound interest.
a.
R0
b.
R 80.25
c.
R100.35
d.
R 36.10
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2|Page
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