1. Calculate the Interest for a deposit of N$850 into an account paying 3.5% annual simple interest if the money is in the account for 7 months. 3 Marks

2. When Rapikama was born, his father deposited N$10000 into a special account for his college education. The account earned 6.25% interest compounded daily. How much will be in the account when Rapikama is eighteen? 5 Marks

3. Find the future value of an ordinary annuity with N$150 monthly payments at 6% annual interest for 12 years. 6 Marks

4. On 4 February 1999, Sonia borrows N$3000 at 11% p.a simple interest. He made 3 Partial payments: N$ 1000 on 12 April 1999, N$ 600 on 12 May 1999, N$700 on 11 June 1999. What is the balance due on 15 August 1999? Draw the timeline too. (Use Merchants rule). 11 Marks

5. First National Bank (FNB) advertises discount notes at an annual interest rate of 8% for 80 days. Calculate the effective interest rate of the note. 4 Marks

6. Diina takes out a discounted loan with a face value of N$ 500 for 6 months from lender who charges a 9.5% discount rate. (a)What is the discount and how much money does the borrower receive? 6 Marks (b)What size loan should the borrower ask for if he wants to receive N$500 cash? 5 Marks