Analytic Finance

Revision questions

Question 1

How long will it take a sum of money to treble itself at 14 percent? Answer: 8.38 yearsQuestion 2 R100 is invested at 10 percent per annum (pa) compounded semi-annually. After 3 months, the interest rate changes to 12 percent per annum compounded monthly. Find the value of the investment after 2 years. |

Answer: R126.28 | |

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Question 3 | | | | | | | | |

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A monthly deposit of R113 is made once a month into an account at an interest rate of 13 percent pa compounded monthly. How much is in the account immediately after the 14 monthly deposit of R113? |

Answer: R1698.37 |

Question 4 | | | | | | | | |

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Find the accumulated amount of R468 invested at 13 percent pa for 3 years. | | | |

Answer: R675.28

Question 5 | | | | | | | | |

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The interest rate for an investment is 7 percent per annum compounded monthly. Find the effective interest rate per annum. |

Answer: 7.23% | | | | | | | | |

Question 6 | | | | | | | | |

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What amount of money must be invested now so as to accumulate to R1751 in 17 months time at 12 percent pa compound interest. |

Answer: R1478.50Question 7 | | | | | | | | |

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If an investment amount is to double in 3 years, find the nominal interest rate at which it must be invested if interest is compounded quarterly. |

Answer: 23.79% | | | | | |

Question 8 | | | | | | | | |

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Find the amount in an account after 13 monthly payments of R182 have been made if R211 was withdrawn from the...