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Abongile Bungane

Abongile B.

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Breanna Ollech verified

Numerade educator

Question 16 Tiff has taken a mortgage loan from ABC Bank, R 169,500, to be repaid over 2 years. Interest is charged at 15% pa compounded monthly, and payments are made at the beginning of each month. Calculate the balance on a mortgage loan after 13 payments. A R 81 938.16 B R 84 380.26 C R 78 268.60 D None of the above

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Breanna Ollech verified

Numerade educator

Question 14 Mr Bad is saving for retirement and wants to save R4000(PMT) at the end of each year for the next 25 years. He will earn interest of 8% p.a compounded annually. How much will he have at the end of 25 years? A R 252 000 B R 341 234.60 C R 292 423.76 D R 115 423.60

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ANSWERED

Breanna Ollech verified

Numerade educator

Mr Bad is saving for retirement and wants to save R4000(PMT) at the end of each year for the next 25 years. He will earn interest of 8% p.a compounded annually. How much will he have at the end of 25 years? A R 252 000 B R 341 234.60 C R 292 423.76 D R 115 423.60

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Breanna Ollech verified

Numerade educator

Sandra wants to retire in 30 years, and she expects to live for 10 years after retirement. During these 10 years after retirement, she wants to be able to withdraw R10 000 at the end of each month, and on retirement date she wants to set up a scholarship that will pay R2 500 at the end of each month, forever. She can earn interest at 12% per annum compounded monthly. Calculate the present value of the perpetuity on retirement. A R 250 000 B R 120 000 C R 100 000 D R 208 000

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Breanna Ollech verified

Numerade educator

Smith has been contracted by CPUT for 10 years on a monthly salary of R45 000. Smith has also taken a mortgage loan from ABC Bank, R 169,500, to be repaid over 2 years. Interest is charged at 15% pa compounded monthly, and payments are made at the beginning of each month. Furthermore, Smith has purchased a new vehicle that costing R20 000 and this amount was borrowed from ABSA at 3.9% per year compounded monthly over 5years. Every month he will spend; R 200 on groceries, R15 800 on travelling expenses and R8 500 on entertainment. In addition, he will pay R 500 to UWC every month for his PhD studies. Smith will incur no further expenses and any amount remaining from his salary will be saved. Calculate the monthly payments on a loan from Absa. A R 366.24 B R -366.24 C R 242.76

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Breanna Ollech verified

Numerade educator

Sandra wants to retire in 30 years, and she expects to live for 10 years after retirement. During these 10 years after retirement, she wants to be able to withdraw R10 000 at the end of each month, and on retirement date she wants to set up a scholarship that will pay R2 500 at the end of each month, forever. She can earn interest at 12% per annum compounded monthly. Calculate the present value of the monthly withdrawals on retirement. A R 697 005 B R 10 000 C R 500 000 D None of the above

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Breanna Ollech verified

Numerade educator

You wish to purchase an apartment in Cape Town which is situated in a tree-lined avenue. The purchase price, with costs, is R1 710 000 and you only have 20% of the amount required. To cover the balance, you are able to obtain a mortgage loan at an interest rate of 10% pa compounded monthly. The term of the loan is 20 years. Assume that property values are expected to rise at a rate of 5.5% per year. You will be able to rent out the apartment at a rate of R8 000 per month. Mortgage and rent payments are payable at the beginning of each month. If instead of paying the stipulated monthly payments, you decide to pay R28 500 at the end of each month; approximately how many years and months will it take you to repay the mortgage loan? A 62 periods B 5 Years and 2 months

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ANSWERED

Breanna Ollech verified

Numerade educator

You wish to purchase an apartment in Cape Town which is situated in a tree-lined avenue. The purchase price, with costs, is R1 710 000 and you only have 20% of the amount required. To cover the balance, you are able to obtain a mortgage loan at an interest rate of 10% pa compounded monthly. The term of the loan is 20 years. Assume that property values are expected to rise at a rate of 5.5% per year. You will be able to rent out the apartment at a rate of R8 000 per month. Mortgage and rent payments are payable at the beginning of each month. What is the expected value of the apartment in 20 years' time? (A) R 5 120 150.65 (B) R 1 710 000 (C) R 5 120 029.43 (D) None of the above

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Breanna Ollech verified

Numerade educator

Peter wants to set up a fund that will pay R 1,487.50 per month forever, starting end of month 1. How much should she invest today if she will earn interest of 30% p.a. compounded monthly? (A) R1 487.50 (B) R59 500 (C) R 75 000 (D) R 250 000

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Breanna Ollech verified

Numerade educator

Oskido deposited R7000 into his ABSA account and he will earn interest of 6.5% p.a. How much will Oskido have after 10years when the interest rate is compounded annually? (A) R 13 139.39 (B) R11 550 (C) R10 110.29 (D) R12 869.45

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