Your grandmother left you an inheritance in the form

of a trust. The trust agreement states that you are to receive R2 500 on the first

day of each year, starting immediately and continuing for fifty years. What is

the value of this inheritance today if the applicable discount rate is 6,20%?

Peter wants to purchase a car that costs R250 000,00. He decides to take a loan on the car in the expectation that it will be paid over six years at an interest rate of 15% compounded monthly. What will the interest payment be on the 24th monthly payment?

Walter predicts that after he graduates, his student

loan debt will total R24 500. It has an interest rate of 6,5%. How much must he

pay each month if he hopes to pay off this debt in full within five years?

Ellery purchases a home with a loan of R149 000. The

30-year loan term and 7,5% interest rate apply to the home loan. Every month,

payments are made. How much interest will he pay overall if he purchases the

house in accordance with the terms of the loan?

Scottie is going to inherit R500 000 three years

from now. 10% of the interest rate compounded semi-annually is used as the

discount rate

Autumn is considering two insurance settlement offers.

The first offer includes annual payments of R5 000, R7 500, and R10 000 over

the next three years, respectively. The other offer is the payment of one lump

sum amount today. She is trying to decide which offer to accept given the fact

that the discount rate is 5%. What is the minimum amount that she will accept

today if she is to select the lump sum offer?

Anastasia recently bought a brand-new warehouse. She

has negotiated for a 30-year mortgage loan for 80% of the R2 600 000

purchase price in order to finance the transaction. The monthly payment on this

loan will be R11 000. What is the effective annual rate on this loan?

The Robertson & Associate Firm is contemplating

about taking on an R123 900 project. Over a 30-month period, the project will

generate cash flows of R4 894,35 per month. What is the rate of return on this

project?

In order to buy a house, you borrowed R150 000 this morning at an interest rate of 9%. The loan is to be repaid in equal monthly payments over 20 years. The first payment is due one month from today. How much of the second payment will be applied to the principal balance?

You make monthly deposits of R75 into a retirement account that pays 10% interest per annum, compounded monthly. If your first deposit will be one month from now, how large will your retirement account be in 20 years?