Financial Math Answers

The accumulated amount after eight years of monthly payments of R1 900 each into an account earning 9,7% interest per year, compounded monthly, is

[1] R274 069,25.

[2] R182 400,00.

[3] R126 532,64.

[4] R395 077,74.

[5] none of the above. 

Siya wants to buy a new state of the art computer for R35 000. He decides to save by depositing an amount of R500 once a month into an account earning 11,32% interest per year, compounded monthly. The approximate time it will take Siya to have R35 000 available is

[1] 70 months.

[2] 40 months.

[3] 115 months.

[4] 54 months.

[5] none of the above.

Three years ago Thokozile borrowed R7 500 from Alfred. The condition was that she would pay him back in seven years’ time at an interest rate of 11,21% per year, compounded semi-annually. Six months ago she also borrowed R25 000 from Alfred at 9,45% per year, compounded monthly. Thokozile would like to pay off her debt four years from now .

After seeing what she must pay Alfred, Thokozile decides to reschedule her debt as two equal payments: one payment now and one three years from now. Alfred agrees on condition that the new agreement, that will run from now, will be subjected to 10,67% interest, compounded quarterly. The amount that Thokozile will pay Alfred three years from now is

[1] R22 286,88.

[2] R25 103,93.

[3] R32 500,00.

[4] R21 171,35.

[5] none of the above. 

Three years ago Thokozile borrowed R7 500 from Alfred. The condition was that she would pay him back in seven years’ time at an interest rate of 11,21% per year, compounded semi-annually. Six months ago she also borrowed R25 000 from Alfred at 9,45% per year, compounded monthly. Thokozile would like to pay off her debt four years from now

The amount of money that Thokozile will have to pay Alfred four years from now is

[1] R36 607,98.

[2] R45 181,81.

[3] R55 336,49.

[4] R48 032,20.

[5] R54 278,92

A savings account pays interest at the rate of 5% per year, compounded semi-annually. The amount that should be deposited now so that R250 can be withdrawn at the end of every six months for the next ten years is

[1] R3 144,47.

[2] R6 386,16.

[3] R1 930,43.

[4] R3 897,29.

[5] none of the above

If money is worth 12% per annum, compounded monthly, how long will it take the principal P to double? [1] 69,66 years

[2] 8,33 years

[3] 7,27 years

[4] 6,12 years

[5] None of the above

If R35 000 accumulates to R48 320 at a continuous compounded rate of 8,6% per year, then the term under consideration is .... years.

[1] 6,23

[2] 2,77

[3] 4,43

[4] 3,91

[5] 3,75 

The effective rate for a continuous compounding rate of 17,5% per year, is

[1] 16,13%.

[2] 21,08%.

[3] 17,50%.

[4] 19,13%.

[5] 19,12%.

An interest rate of 17,5% per year, compounded quarterly, is equivalent to a continuous compounding rate of

[1] 17,185%.

[2] 17,500%.

[3] 17,128%.

[4] 19,125%.

[5] 17,888%

An amount borrowed at 29% interest per year, compounded continuously, has accumulated to R38 279,20 after four years. The initial amount borrowed was

[1] R13 823,05.

[2] R12 000,00.

[3] R12 005,53.

[4] R17 721,85.

[5] R7 160,73.