Financial Math Answers

1. At what interest rate will the P13,250 amount to P 17,500 for the period of March 5, 2000 to April 5, 2017?

2. Selvyn has P35,000.00, decided to buy a new gadget at P30,000.00, and invested the remaining P5,000.00-in an instrument that offers 4.5% interest rate per annum. After five years, the gadget's value has downgraded drastically compared to his P5,000.00 investment. How much is the worth of the investment five years later? If he invested the other way around, how much money will it make?

3. If Steph wants to double her money in five years, at what rate of interest will she invest her money?

An amount of 14000 is invested at a nominal rate of 13.5 p.a compounded quarterly. Calculate the effective rate p.a

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?

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

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

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.

Which of the following statements best defines an annuity;

[1] An annuity is a series of equal or same amount payments at equal time intervals.

[2] An annuity is a periodic payment made to the lender.

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

[4] An annuity is an annual payment of money owed by a borrower to a lender.

Calculate the accumulated amount after 3 years, if R5 000 is invested at an interest rate of 10%

compounded quarterly?

Suppose you invest R10 000 at a simple interest rate of 12% per year. What would be the value

of the accumulated amount after 6 years.

How much simple interest is payable on a loan of R40 000, borrowed for a period of 22 months at a simple interest rate of 10% per year