1. The amount of R11 500 000 discounted over three years at an interest rate (discount rate) of 10% per year is: A) R8 640 120 B) R15 306 500 C) R28 598 797 D) None of the above 2. How long will it take to double your money at an interest rate of 17.34% per year if the interest is compounded annually: A) 4.12 years B) 4.33 years C) 5.12 years D) None of the above 3. Ifa lump sum of R60 000 left in the bank for five years with monthly deposits of R2 500 has grown to R266 266 and interest is compounded monthly, what annual rate of interest has the bank been paying? A) 7,13% B) 7.25% C) 386.90% D) None of the above 4. If you invest R100 000 today at 12.5% interest per annum for 42 years, you will have R_ A) R3 758 173 at the beginning of the thirty-second year? B) R3 888 313 C) R14 073 624 D) None of the above 5. Shaun wants to invest R10 000 today and make monthly deposits of R1 500. The market interest rate is 10% per year and is compounded six monthly. Shaun would like to know how much he will accumulate at the end of three years. A) R14 784 B) R75 881 C) R76 155 D) None of the above 6. A bank is offering 6% per year, interest compounded daily on a special savings account. If you deposit R8 000 at the beginning of each month, how much will you accumulate by the end of 10 years? (Assume a year has 365 days) A) R1 312 069 B) R1 317 590 C) R1 318 645 D) None of the above 7. You wish to purchase a house for R1.25 million and the bank has offered you an 80% mortgage loan. The interest rate is 11% per year. The term of the mortgage loan is 30 years. What is your monthly repayment on the mortgage loan, payable in advance? A) R9 437 B) R9 523 C) R11 796 D) R11 904
1. The amount of R11 500 000 discounted over three years at an interest rate (discount rate) of 10% per year is: A) R8 640 120 B) R15 306 500 C) R28 598 797 D) None of the above 2. How long will it take to double your money at an interest rate of 17.34% per year if the interest is compounded annually: A) 4.12 years B) 4.33 years C) 5.12 years D) None of the above 3. Ifa lump sum of R60 000 left in the bank for five years with monthly deposits of R2 500 has grown to R266 266 and interest is compounded monthly, what annual rate of interest has the bank been paying? A) 7,13% B) 7.25% C) 386.90% D) None of the above 4. If you invest R100 000 today at 12.5% interest per annum for 42 years, you will have R_ A) R3 758 173 at the beginning of the thirty-second year? B) R3 888 313 C) R14 073 624 D) None of the above 5. Shaun wants to invest R10 000 today and make monthly deposits of R1 500. The market interest rate is 10% per year and is compounded six monthly. Shaun would like to know how much he will accumulate at the end of three years. A) R14 784 B) R75 881 C) R76 155 D) None of the above 6. A bank is offering 6% per year, interest compounded daily on a special savings account. If you deposit R8 000 at the beginning of each month, how much will you accumulate by the end of 10 years? (Assume a year has 365 days) A) R1 312 069 B) R1 317 590 C) R1 318 645 D) None of the above 7. You wish to purchase a house for R1.25 million and the bank has offered you an 80% mortgage loan. The interest rate is 11% per year. The term of the mortgage loan is 30 years. What is your monthly repayment on the mortgage loan, payable in advance? A) R9 437 B) R9 523 C) R11 796 D) R11 904
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 2STP
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Transcribed Image Text:QUESTION 3
1. The amount of R11 500 000 discounted over three years at an interest rate
(discount rate) of 10% per year is:
A) R8 640 120
B) R15 306 500
C) R28 598 797
D) None of the above
2. How long will it take to double your money at an interest rate of 17.34% per
year if the interest is compounded annually:
A) 4.12 years
B) 4.33 years
C) 5.12 years
D) None of the above
3. If a lump sum of R60 000 left in the bank for five years with monthly deposits of
R2 500 has grown to R266 266 and interest is compounded monthly, what
annual rate of interest has the bank been paying?
A) 7.13%
B) 7.25%
C) 386.90%
D) None of the above
4. If you invest R100 000 today at 12.5% interest per annum for 42 years, you will
have R
at the beginning of the thirty-second year?
A) R3 758 173
B) R3 888 313
C) R14 073 624
D) None of the above
5. Shaun wants to invest R10 000 today and make monthly deposits of R1 500.
The market interest rate is 10% per year and is compounded six monthly.
Shaun would like to know how much he will accumulate at the end of three
years.
A) R14 784
B) R75 881
C) R76 155
D) None of the above
6. A bank is offering 6% per year, interest compounded daily on a special savings
account. If you deposit R8 000 at the beginning of each month, how much will
you accumulate by the end of 10 years? (Assume a year has 365 days)
A) R1 312 069
B) R1 317 590
C) R1 318 645
D) None of the above
7. You wish to purchase a house for R1.25 million and the bank has offered you
an 80% mortgage loan. The interest rate is 11% per year. The term of the
mortgage loan is 30 years. What is your monthly repayment on the mortgage
loan, payable in advance?
A) R9 437
B) R9 523
C) R11 796
D) R11 904
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