Financial Math Answers

An effective rate of 29,61% corresponds to a nominal rate, compounded weekly, of

[1] 34,35%.

[2] 29,53%.

[3] 26%.

[4] 29,61%.

[5] none of the above

Tshego won R165 000 and decided to deposit 65% of this amount in an account earning 8,25% interest per year, compounded every four months. The accumulated amount after five years is

[1] R248 203,55

. [2] R151 490,63.

[3] R247 862,83.

[4] R161 110,84.

[5] R161 332,31

The present value of a loan of R12 000 due in five years’ time, at a simple discount rate of 15% per annum is

[1] R24 136,29.

[2] R48 000,00.

[3] R3 000,00.

[4] R5 324,46.

[5] none of the above.

Tshepo wants to buy a big screen TV. She has five interest rates to choose from if she borrows the money from the bank. The cheapest option for she is

[1] 29% per year, compounded daily.

[2] 30% per year, compounded semi-annually.

[3] 28,5% per year, compounded weekly

[4] 29,5% per year, compounded every two months.

[5] 29% per year, compounded monthly.

The bank charges a nominal interest rate is 16,5% per annum, compounded at the end of every second month. The equivalent effective interest rate is

[1] 17,18%.

[2] 17,68%

. [3] 14,53%

. [4] 16,18%.

[5] none of the above. 

The bank charges a nominal interest rate is 16,5% per annum, compounded at the end of every second month. The equivalent effective interest rate is

[1] 17,18%.

[2] 17,68%.

[3] 14,53%.

[4] 16,18%.

[5] none of the above. 

The accumulated amount that you will receive after 38 months if you deposit R13 300 into an account where money is worth 11,35% per year, compounded every two months is

[1] R15 690,19.

[2] R18 080,24.

[3] R14 117,08.

[4] R18 865,83

.[5] R18 988,31.

An investment of R20 000 accumulated to R45 200. If the applicable simple interest rate is 12% per year, then the time under consideration is

[1] 3,25 years.

[2] 4,65 years.

[3] 7,19 years.

[4] 10,50 years.

[5] none of the above.

On 29 March 2021, Justin deposited R3 500 into a savings account. The simple interest rate agreed upon was 7,5% per year. The accumulated amount in the savings account on 10 October 2021 is

[1] R3 640,24.

[2] R3 643,09.

[3] R3 637,88.

[4] R3 649,06.

[5] none of the above