1. How long will it take factory equipment with a new purchase price of R850 000 to depreciate to R411 296 at 15%p.a.?
2. How many years will it take an investment of R250 000 invested at 9.5% p.a.
compounded monthly, to grow to R285 473?
3. Each month Peter invests R600 at 12% p.a. compounded monthly. Calculate the
value of the investment after 8 years (i.e. the future value of the annuity).
4. Each month Peter invests R600 at 12% p.a. compounded monthly. Calculate the
value of the investment after 8 years by creating a geometric series, and the finding
1. Peter wants to buy a house. He can afford a monthly instalment of R6000.
Calculate the amount he can borrow, repayable over 20 years at an interest rate
of 15% p.a.. Compounded monthly. (Repayment of a loan).
6. Jack wants to buy a flat. He must take out a mortgage bond of R521 364,83,
repayable over 20 years at 15% p.a. compounded monthly. How much will his
monthly instalment be?
7. When he retires, uncle Steven wants an amount available from which a monthly
payment of R6000 can be made to him for 14 years. The amount will earn 12%
interest, compounded monthly. Calculate this amount.
8. A home loan of R825 000 is secured at 13,5% p.a. compounded monthly, repayable over 25 years.
8.1 Calculate the monthly instalment.
8.2 Calculate the balance (amount outstanding) after 10 years
9. Ryan Enterprises write off their equipment over a five year period. They recently
bought a new vehicle which needs to be replaced after five years at a cost of
R400 000. How much must be invested quarterly in a sinking fund of which the
interest rate is 10% p.a. compounded quarterly?