1.Compute the effective yearly rate if the monthly rate is 1%
2.NSSF promises a monthly 0.75% return if you deposit €100 per month for 15 consecutive years. What amount will be accumulated after those 15 years
iii. Chaula considers buying a house. Currently, he rents a place for TZS 1,000 a month. The current monthly interest rate on mortgages is 0.5%. His planning period is 20 years. If he doesn't want to increase his housing costs, the amount of mortgage is available for his purchase is
iv. Centuries ago, rich families in the province of Mvomero established a fund to further welfare and education. From this fund, only the interest revenue was allowed to be spent, in order to keep the principal unattached. Assume the fund has amounted to TZS12 million and market interest rate (i) is 6% annually. The perpetuity (or present value of the fund) endowed to the society is
V.
Juma Jingi has just bought a scratch lottery ticket and won TZS 10,000. He wants to finance the future study of his newly born daughter and invests this money in a fund with a maturity of 18 years offering a promising yearly return of 6%. The amount available on the 18th birthday of his daughter is
vi. Japhet will retire in 20 years. This year he wants to fund an amount of €15,000 tobecome available in 20 years. How much does he have to deposit into a pension plan carning 7% annually
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