4.1 What will my investment of R100 500 be worth if my bank pays me simple interest of 9% per annum and I invest my money for 180 days? R4 460,55 R96 039,45 c) R100 550,25 R104 980,55 4.2 A client approaches you with the news that she plans to retire on a ranch worth R3 000 000. She plans to save every year for 20 years. How much must she save at the end of each year if the interest rate is 12% per annum? (Round off the answer to the nearest rand.). a) b) c) d) R36 800 R39 000 R41 600 R43 400
4.1 What will my investment of R100 500 be worth if my bank pays me simple interest of 9% per annum and I invest my money for 180 days? R4 460,55 R96 039,45 c) R100 550,25 R104 980,55 4.2 A client approaches you with the news that she plans to retire on a ranch worth R3 000 000. She plans to save every year for 20 years. How much must she save at the end of each year if the interest rate is 12% per annum? (Round off the answer to the nearest rand.). a) b) c) d) R36 800 R39 000 R41 600 R43 400
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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From 4.1 to 4.9 use financial calculator
Transcribed Image Text:13:38
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4.1
What will my investment of R100 500 be worth if my bank pays me simple
interest of 9% per annum and I invest my money for 180 days?
5
a)
b)
c)
R4 460,55
R96 039,45
R100 550,25
R104 960,55
4.2
A client approaches you with the news that she plans to retire on a ranch worth
R3 000 000. She plans to save every year for 20 years. How much must she
save at the end of each year if the interest rate is 12% per annum? (Round ofr
the answer to the nearest rand.).
a)
b)
c)
dy
R36 800
R39 000
R41 600
R43 400
4.3
Miriam took a bond of R250 00 over a 25 year period at 10% per annum. What
will the customer's outstanding balance be after 12 years if she makes monthly
instalments?
R1 654,43
R52 085.57
a)
b)
c)
d)
R197 913.98
R275 046,43
4-1
I am planning to attend a European Champions soccer match in Brazil. The
travel agent estimates the cost for the week to be R50 000. If I receive 7,5%
interest per annum compounded monthly, how long will it take me to save the
amount if I deposit R15 000 now and R1 000 thereafter at the end of every
month? (Round otf the answer to the nearest decimal.)
4.4
a)
b)
16
c)
24
d)
32
4.5
What is the difference between R2 000 invested at 12% p.a. compounded
interest for one year it:
Interest is calculated semi-annually, and
) Interest is calculated monthly?
a)
b)
c)
dy
R0,00
R3,35
R645
01365
R13,65
4.6
The value of the nominal rate if the effective rate is 16% compounded semi-
annually is closest to .
a)
b)
c)
d)
8.00%
15.00%
18.00%
32,00%
4.7
Calculate the effective interest rate if the nominal interest rate earned on an
investment is 10% per annum but interest is calculated at the end of each month.
(Round off the answer to the nearest decimal.)
II
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