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?
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
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.
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?
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).
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
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).
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?
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.?