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1 . 1 Indicate the difference between simple interest and compounded interest. ( 2 ) 1 . 2 Mr Omar wants to make an investment
Indicate the difference between simple interest and compounded interest. Mr Omar wants to make an investment of R in one on the wellknown banks in South Africa. He then approaches three banks Bank A Bank B and Bank C which offered him different investment options. Bank A: compounded annually for years. Bank B: compounded quarterly for years. Bank C: compounded half yearly for years. Calculate the return from each investment after years and recommend to Mr Omar which bank should he invest in and why. Ms Marawa wants to join a ladies stokvel with her friends. She then chooses to be the last one to receive the money so that she can have a lot of money at the end of the year December In their stokvel, they each contribute R at the end of each month to the person who is supposed to receive the money. Do you think that Ms Marawa made the right choice by choosing the last spot? Recommend the best spot to Ms Marawa.
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