Math Problem Solver

Question 1

Determine the equivalent weekly compounded interest rate (to two decimal places) of an interest rate of

14,90% per year, compounded quarterly.

Question 2

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Quarterly deposits of R400 each are made into a bank account earning interest at 16% per year compounded

quarterly. Determine the time in quarters (rounded to the nearest quarter) that it will take for the account

to accumulate to R40000.

Draw an appropriate timeline showing all the given values.

Question 3

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Your investment of R35000 accumulates to R48320 over a period of four years. Calculate the continuous

compounding rate per year (to one decimal place) that you have earned.

[5]

Question 4

Thabo deposits R6000 at the beginning of each month into an account earning 8,94% interest per year,

compounded monthly. Calculate the amount (rounded to the nearest rand) that Thabo will have available

six years from now.

Draw an appropriate timeline showing all the given values.

Question 5

[6]

Aloan will be paid back by means of payments of R25000 each every second month for six years. An interest

rate of 7,5% per year, compounded every two months, will be applicable. Determine the present value of the

loan.

Draw an appropriate timeline showing all the given values.

[5]