Question 1 Mary invested R40 000 in order to have R56 000 available in 30
months’ time. The yearly rate, compounded semi-annually, is
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Marked out of a. 7,21%.
1.00
b. 8,00%.
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question c. 13,92%.
d. 14,41%.
Question 2 Bhongo received R32 412,87 after investing an amount of money in
an account earning interest at a continuous compounding rate of
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10,15% per year. The amount of money that he invested 57 weeks
earlier, is approximately
Marked out of
1.00
a. R29 000,00.
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question b. R29 153,86.
c. R32 768,16.
d. R36 227,38.
Question 3 To pay off a loan of R7 000 due now and a loan of R2 000 due in 14
months’ time, Mrs Skosana agrees to make three payments in two,
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five and ten months’ time respectively. The second payment is to be
double the first and the third payment is to be triple the first. What is
Marked out of the approximated size of the payment at month five if interest is
1.00 calculated at 16% per year, compounded monthly?
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question
a. R1 582,43
b. R3 000,00
c. R3 164,86
d. R4 500,00
Question 4 Spiderman decides that he would like to buy his lovely
wife, Spiderwoman, a new car when she turns 30 in six years’ time.
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He deposits R6 000 at the beginning of each month into an account
earning 8,94% interest per year, compounded monthly. The amount
Marked out of that Spiderman (rounded to the nearest rand) will have available six
1.00 years from now is
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a. R333 412.
b. R432 000.
, c. R568 948.
d. R573 187.
Question 5 Thulani borrowed an amount of money from his father to open the
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Generous Grain Shop. The loan will be paid back by means of
answered payments of R25 000 each every second month for six years. An
interest rate of 7,5% per year compounded every two months will be
Marked out of applicable. The present value of the loan is
1.00
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a. R238 067,35.
b. R400 738,72.
c. R721 181,68.
d. R900 000,00.
Question 6 Quarterly deposits of R400 each are made into a bank account
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earning interest at 16% per year compounded quarterly. The
answered approximate time (in number of quarters) that it will take for the
account to accumulate to R40 000 is
Marked out of
1.00
a. 41 quarters.
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question b. 28 quarters.
c. 2 quarters.
d. 40 quarters.
Question 7 For four years Gundo paid R4 500 per month into a savings account
earning 6,9% interest per year, compounded monthly. She then
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stopped her monthly payments, but left the money in the account to
earn more interest. It still earned 6,9% interest per year, but at that
Marked out of time the compounding periods changed to quarterly. The balance in
1.00 the account 10 years after she stopped her monthly payments, is
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a. R188 285,49.
b. R216 000,00.
c. R247 935,56.
d. R491 413,14.
Question 8 An interest rate of 14,9% per year, compounded quarterly, is
equivalent to a weekly compounded interest rate per year of
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