Christopher invests  into an account which pays out a lump sum at the end of  If he gets  at the end of the period, what compound interest rate did the bank offer him? Give your answer correct to one decimal place.

The price of popcorn and a cooldrink at the movies is now R60. If the average rate of inflation is 9,2% p.a., what was the price of popcorn and cooldrink 5 years ago?

Emma wants to invest at a compound interest rate of . Calculate the balance accumulated by the end of  years. As usual with financial calculations, round your answer to two decimal places, but do not round off until you have reached the solution.

A person invests an amount of R6 740 in a savings account that pays simple interest at a rate of 11% per annum.

Calculate the INTEREST accumulated by the end of 3 years.

You are going to invest R5 000 and you

have a choice of two bank accounts….

• Account 1 is a

  simple interest account paying 7% interest per annum.

• Account 2 is a

  compound interest account paying 5% interest per annum.

If you are to withdraw your money after 6

years, which account would have the most money?

Bonnie bought a stove for R3 750. After 3 years she had finished paying for it and the R956,25 interest that was charged for hire purchase. Determine the rate of simple interest that was charged.

You are going to invest R7 000 and you have a choice of two bank accounts:

• Account 1 is a simple interest account paying 7% interest per annum.
• Account 2 is a compound interest account paying 5% interest per annum.

If you are to withdraw your money after 12 years, which account would have the most money?

Billy opens a savings account that pays simple interest of 4.6% per annum. If he earns R39,10 interest over 5 years how much did he invest to start with?

Is the following statement True or False?

When calculating hire purchase, we make use of the compound interest formula.