FINANCE WORKSHEET 1 1. R15 000 is invested for 12 years at an interest rate of 11% p.a. Calculate the value of the investment after 12 years if interest is calculated as: 1.1 1.2 Simple interest Compound interest
R10 000 is invested in a savings account which offers an interest rate of 15% p.a. compounded annually. Calculate how much money will be in the account after 7 years.
R5 000 was invested and 5 years later, R7 000 was paid out. 3.1 3.2 Calculate the simple interest rate that would yield this kind of return. Calculate the compound interest rate that would yield the same return.
Sarah takes out a loan to buy furniture. She repays the loan in a lump sum amount at the end of 3 years. How much would Sarah repay if interest was calculated as: 4.1 4.2 15% p.a. simple interest. 12% p.a. compound interest.
Assume interest is compounded annually unless otherwise stated. 5. Mr. Dlamini deposited R9 000 into an account when his son was 10 years old in order to start an investment for his university fees. The account has an interest rate of 15% p.a. His son starts university when he’s 18 years old and this course lasts 3 years. The first year’s fees are R10 000 and they increase by 10% each year. Calculate: 5.1 5.2 5.3 5.4 The fees for the second and third year of the course. The balance in the account after the first year’s fees have been paid. The balance in the account after the second year’s fees have been paid. How much extra money Mr. Dlamini will need to cover the third year’s fees.
R7 000 is deposited into a savings account and 3 years later, R8 000 is added. After 5 years, R16 200 is withdrawn. How much money will be left at the end of ten years if interest is calculated at 11% p.a.?
R18 000 is invested at a rate of 7,5% p.a. for 3 years. The rate is then increased to 8,25% for the next 5 years. Calculate the value of the investment at the end of 8 years.
A newly married couple are buying furniture for their home. The furniture costs R32 000 and they use a hire purchase loan to pay for it. If the interest rate is 13% p.a. for 3 years, calculate their monthly payments.
Simon decides to buy a fridge for R7 200. He pays a deposit of 16% and pays the balance over 36 months at an interest rate of 10,5% p.a. Calculate Simon’s monthly payments if he pays an insurance premium of R9,75.
An advertisement in the newspaper says “Buy a stove for only R315 per month for 36 months!” Calculate the cash price of the stove if the interest rate is 14% p.a.
If the average rate of inflation over the last 5 years was 6,8%, calculate: 11.1 11.2 The price of a loaf of bread in 5 years time if the current price is R8,99. The price of the loaf of bread 5 years ago.
The current price of a toaster is R140. Calculate the price of the toaster in 10 years time if the price is expected to rise at 12,5% p.a. due to inflation.
The current school fees at a particular school are R11 800. Calculate the fees in 6 years time if the fees are increased by 8,5% p.a. as a result of inflation.
A handbag costs £280 in Britain or 340 euro in Germany. Which price would be better for a South African tourist if the exchange rate is R15,28 to the British pound and R11,20 to the euro?
Mitch bought art works from Australia for 108 000 Australian dollars. 15.1 Calculate the value of the art works in rands if the exchange rate is R8,324 to the Australian dollar. Three months later, the rand weakened against the Australian dollar. Calculate the increased cost in rand if the new exchange rate was R8,571 to the Australian dollar.