In May 2025
Search & Filtering
can do his assignments and write his online exams. Sam borrowed R15 000,00 from his grandfather at
an interest rate of 9,5% per year, compounded monthly. Determine how much Sam will owe his
grandfather after five years.
Mr Sundani wants to buy a car in three years’ time. He starts investing R3 000,00 per month at an interest rate of 13% per year, compounded monthly. Determine how much he will have after three years.
Question 16 Moses invests R3 745,35 at the end of each month at an interest rate of 14,5% per year, compounded monthly. How long will it take him to have R1 000 000,00? Give your answer to the nearest year.
Zodwa needs R450 550,00 to buy a house. The bank approved her loan for the full amount at an interest rate of 25% per year, compounded quarterly. The loan must be paid off in ten years’ time. Question 13 Determine the size of Zodwa’s quarterly payment
Question 14 What will the outstanding balance on Zodwa’s loan be at the end of seven years if the interest rate remains unchanged?
Mike wants to buy a scooter that costs R10 000,00, but he cannot afford to buy it cash. He opts for the hire purchase agreement, which requires a 13% deposit and 24 equal monthly instalments at an interest rate of 15% per annum, compounded monthly. Answer the following questions: a) How much will his deposit be? b) Calculate the total amount that he still must pay after the deposit. c) Calculate the monthly instalments.
Difference between rate and Premium.
Difference between rate making and rating.
Jim took a loan of R30 000,00 for 18 months at a simple interest rate of 12,5% per year. Determine
the amount that Jim will pay in 18 months.
A couple purchased a home and signed a mortgage contract for $500, 000 to be paid with half-yearly payments over a 25-year period. The interest rate applicable is j2 = 8.5% p.a. applicable for the first five years, with the condition that the interest rate will be increased by 4% every 5 years for the remaining term of the loan. Based on the given information, your group is required to use Excel software to: (a) Calculate the half-yearly payment required for each five-year interval [10 marks] (b) Calculate the loan outstanding (outstanding balance) at the beginning of each five year interval. [10 marks] (c) Prepare a loan amortization table for the final 12 half-years of the loan term. [10 marks]
5. Parexel Co. produces and sells cell phone batteries. Its production function is 𝒒 = 𝟑𝟐𝟏𝑲𝟎.𝟑𝑳𝟎.𝟑, while its cost function is 𝒄 = 𝟐𝟏𝟎𝑲 + 𝟗𝟎𝑳. Parexel can sell its batteries at 𝒑 = 𝟔𝟑.
a. Does this production function exhibit increasing, decreasing or constant returns to scale? Explain briefly.
5. Parexel Co. produces and sells cell phone batteries. Its production function is 𝒒 = 𝟑𝟐𝟏𝑲𝟎.𝟑𝑳𝟎.𝟑, while its cost function is 𝒄 = 𝟐𝟏𝟎𝑲 + 𝟗𝟎𝑳. Parexel can sell its batteries at 𝒑 = 𝟔𝟑.
A couple purchased a home and signed a mortgage contract for $500, 000 to be paid with half-yearly payments over a 25-year period. The interest rate applicable is j2 = 8.5% p.a. applicable for the first five years, with the condition that the interest rate will be increased by 4% every 5 years for the remaining term of the loan. Based on the given information, your group is required to use Excel software to: (a) Calculate the half-yearly payment required for each five-year interval [10 marks] (b) Calculate the loan outstanding (outstanding balance) at the beginning of each five year interval. [10 marks] (c) Prepare a loan amortization table for the final 12 half-years of the loan term. [10 marks]
