worksheet 2.docx

# worksheet 2.docx - QSC 131 Worksheet 2 Week of 18 22...

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QSC 131 Worksheet 2 Week of 18 - 22 February 1. An investor wishes to have an amount of R4000 on maturity in 5 years time. He can invest his money at a simple interest rate of 12.0% per annum. How much money should he invest now in order to achieve his aim? 2. How long will it take for an investment of R16 000 to earn total interest of R2860 if it attracts a simple interest rate of 3.25% per annum? 3 An engineer borrows R275 000 from a money lender, to be repaid half-yearly over 19 years at a flat rate of simple interest of 5.50%. Find the total simple interest on the loan 4. You have R15000 to invest today at 7% interest compounded annually. a) Find how much you will have accumulated in the account at the end of i) 3 years; ii) 6 years; and iii) 9 years. b) Use your findings in part (a) to calculate the amount of interest earned in i) the first 3 years (year 1 to 3); ii) the second 3 years(year 4 to6) iii) the third 3 years (year 7 to 9). c) Compare and contrast your findings in part (b). Explain why the amount if interest earned increases in each succeeding 3-year period.

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