In May 2025
Search & Filtering
b. RM 2500 is invested for 4 years 9 months with interest rates of 8% compounded monthly for the first two years and 6.5% compounded annually for the rest of the period. Find the accumulated amount and interest earned.
You need $2800 to go on your dream vacation with friends. Starting your first day of University, how much money per month would you need to put into a savings account that gives you 3%/a compounded monthly?
katy took out a loan for $12000 over 3 years, if her total loan repayments amounted to $18750, calculate the interest charged.
A family has an $80,000, 20-year loan at 8% compounded monthly.
(a) Find the monthly payment and the total interest paid.
(b) Suppose the family decides to add an extra $100 to its mortgage payment each month starting with the very first payment. How long will it take the family to pay off the mortgage?
(c) Referring to part (i) and (ii), how much interest will the family save?
The First Edition Book Store wants $60000 to upgrade its computer system in 3 years. The store can set up a sinking fund at 7%, compounded quarterly.
(a) What quarterly payment must be made to finance the fund?
(b) Construct a sinking fund schedule showing the periodic deposit, interest earned, increase in fund and accumulated fund.
(c) How much interest will the account accumulate?
(d) If the store’s management wants to withdraw the money after they have made the fourth deposits, how much would they have accumulated in the fund?
Cathy is a supermarket manager who has $50000 to invest for a period of 5 years, and the bank offers a choice of two investment schemes, Plan A and Plan B. Under Plan A she would receive an annual interest rate of 8.30% compounded quarterly, while under Plan B she would receive an annual interest rate of 8.25% compounded monthly.
(a) Calculate the amount of interest Cathy would earn under each plan.
(b) Which plan should Cathy choose? How much extra interest would she earn over the other plan?
A $550.000 home loan is amortized by equal monthly payments for 25 years at a
nominal rate of interest of 5.5% convertible monthly. Calculate the monthly payments of
the loan and the total interest paid during the last 5 years of the loan.
Bonita intends to open a small fabric shop and borrows the money for it from her aunt Magda. Bonita feels that she will only be able to start repaying her debt after three years. Bonita will then pay aunt Magda R105 000 per year for five years. Money is worth 19,5% per year. The amount of money that aunt Magda originally lent Bonita is
Frieda will discharge a debt of R500 000 six years from now, using the sinking fund method. The interest of the debt is 15,6% per year, paid quarterly. The sinking fund earns interest at a rate of 8,4% per year, compounded monthly. The total yearly cost to discharge the debt (to the nearest rand) is
Marang borrowed money that must be repaid in nine payments. The first four payments of R2 000 each are paid at the beginning of each year. Thereafter five payments of R5 000 each are paid at the end of each year. Note there is only one payment per year. If money is worth 6,85% per year, then the present value of these payments is
