Homework Answers

Tebogo borrowed R10 000 at 7,5% per year, compounded monthly. Determine the amount that Tebogo owes after 3 years.

[1] 12514,4614

[2] 13023, 23

[3] 12514,65

[4] 13023, 47

An annuity is a sequence of equal or same amount payments at equal time intervals.

[1] True

[2] False

There are three types of value annuities

[1] True

[2] False

Suppose Bert deposited an amount of R600 at the end of every year into an account earning 11,5% interest per year for 3 years. Determine the accumulated amount at the end of year 3.

[1]. 730

[2]. 1320

[3] 745, 94

[4] 134, 23

The future value of an annuity is the balance in an account before a series of payments have been made at equal time intervals.

[1] True

[2] False

We use the _____________to determine the monthly payment and the outstanding principal.

[1] Annuity

[2] Interest

[3] Future value formula

[4] present value formula

What would be the interest due at the end of year 1 if the principal debt was R5000 and the interest rate is 15%

[1] 75 000

[2] 7500

[3] 750

[4] 75, 00

Suppose the price of commodity X rises from N10 per kg to N15 per kg and the quantity demanded increases from 300 kg to 100 kg. Find the price elasticity of demand.