Three years ago Mahek borrowed R10 000 from Lettisha on condition that he should pay her back two years from now. He also owes Lettisha R6 000 payable five years from now. The applicable interest rate for both transactions is 13,75% per year, compounded half yearly. After considering his payback schedule, Mahek asks Lettisha if he can pay her R9 000 now and the rest in four years’ time. She agrees on condition that the new agreement will run from now and that an interest rate of 16,28% per year, compounded monthly, will be applicable from now. The amount that Mahek will have to pay Lettisha four years from now is

The following is an extract from the amortisation schedule of a home loan:

The value of A is

The following is an extract from the amortisation schedule of a home loan:

If the interest rate has never changed, the original amount of the home loan (rounded to the nearest thousand rand) is

Carmen bought a house and managed to secure a home loan for R790 000 with monthly payments of R9 680,70 at a fixed interest rate of 13,75% per year, compounded monthly, over a period of 20 years. If an average yearly inflation rate of 9,2% is expected, then the real cost of the loan (the difference between the total value of the loan and the actual principal borrowed) to the nearest rand is

Jacob invests an amount of money in an account earning 13,88% interest per year, compounded weekly. After five years, this amount has accumulated to R50 000. What was the amount that was invested initially?

[Answer format: Rdd ddd,dd (R: rand; d: digit)]

[Example of an answer in the correct format: R12 345,67]

Calculate the nominal rate, compounded weekly (accurate to two decimal places), that corresponds to an effective rate of 29,61%.

[Answer format: dd,dd% (d: digit)]

[Example of an answer in the correct format: 12,34%]

Percy needs R30 835,42 to buy a second-hand trailer. How long will it take him to save towards this amount if he deposits R25 000 now into a savings account earning 10,5% interest per year, compounded weekly?

Portia has an individual retirement plan. Her money is invested in a money market fund that pays interest on a daily basis. Over a two-year period in which no deposits or withdrawals were made, the balance of her account grew from R4 500,00 to R5 268,24. The effective interest rate (accurate to one decimal place) over this period is

Lindi needs R5 000 urgently. She went to the bank and borrowed the money at an interest rate of 28% per annum, compounded monthly. The amount of money that Lindi will have to pay the bank back in fifteen months’ time is