Suppose John deposited an amount of R600 at the end of every month into an account earning 6% interest per year, compounded monthly over a period of 3 years. Determine the accumulated amount John will receive at the end 3 years.
[1] R22 921,92
[2] R1 809,02
[3] R19 722,61
[4] R23 601,66
Kgomotso bought a townhouse for R1 395 000. She managed to secure a loan at an interest rate of 11,35% per year, compounded every six months, for a period of 20 years. Determine the period payments Kgomotso must make.
[1] R50 031,39.
[2] R29 501,98.
[3] R88 943,68.
[4] R14 732,77.
Gloria bought a house for R1 800 000. She managed to secure a loan at an interest rate of 7,5% per year, compounded every four months, for a period of 30 years. If the periodic payments are R50 468,56. Determine the outstanding balance at the end of 20 years.
[1] R1 559 915,41
[2] R790 628,79
[3] R1 411 347,63
[4] R1 056 321,74
Frank needs to pay R60 000,00 towards his son’s university fees in three years’ time. If he has R46 150,30 now, at what interest rate per year compounded monthly, must he invest his money?
[1] 10,00% per year compounded monthly
[2] 8,78% per year compounded monthly
[3] 2,50% per year compounded monthly
[4] 13,16% per year compounded monthly