$1.$If you are $20$ years of age and save R$20$ each day for the rest of your life. At the age of $60$

years, how much will that investment worth if the annual interest rate is $10\%$

$2.$NM borrow R$270000\mathrm{.}00$ from his credit card facility to build a house. The interest rate on

the loan is $0\mathrm{.}5\%$ per month and he will make a total of $36$ monthly payments. Calculate his

monthly payment

question $2$

$2\mathrm{.}1$Gore intends to buy his dream house in a low$-$density suburb in the next $10$ years, which

will cost R$3$ million rands. He is going to put aside R$115000$ each year for this project. Use

the spreadsheet to calculate the interest rate at which he must invest the money in order

to buy the house after $10$ years.

$2\mathrm{.}2$ If the same house in $3\mathrm{.}1$ has a present market value of R$2$ million, calculate the average

annual rate of increase in the price of this property over the given period.

$2\mathrm{.}3$ If Gore had R$700000$ when he got the idea of saving for the R$3$ million house. How many

years would it take for him to raise the required amount to purchase the house if the applied

interest rate is $11\%.$

$2\mathrm{.}4$ Diane bought a bank$-$financed car and decided to quickly repay the loan to reduce the loan

interest. Over and above the monthly instalment of R$9800,$ she paid R$110000$ at the end

of the first month, R$70000$ at the end of the second month and $12$ additional payments of

R$6000$ at the end of each month thereafter. If the interest rate is $1\%$ per month, illustrate a

cash flow diagram for this payment and calculate the present value of ND$$s proposed

payment schedule during that period.