1) Luyolo borrows money from the bank at a simple discount rate of 12% per annum.. He needs to pay the bank R5 000 in six months time. The amount of money that he will receive now from the bank is

[1] R5 300,00.

[2] R5 319,15.

[3] R4 700,00.

[4] R4 724,56.

[5] R4 716,98.

2. Ben needs R5 000 urgently. He goes to the bank and borrows the money at an interest rate of 28% per annum, compounded monthly. The amount of money that Ben will have to pay the bank back in fifteen months time is

[1] R6 750,00.

[2] R6 807,42.

[3] R5 145,83.

[4] R7 066,87.

[5] none of the above.

3. If a simple interest rate of 21% per annum, is equivalent to a discount rate of 19% per annum, then the length of time under consideration is

[1] 0,904 years.

[2] 0,453 years.

[3] 1,105 years.

[4] 0,501 years.

[5] none of the above.

5. Charlie received an amount of R2 340 from Zamdela at a discount rate of 12% per annum on 7 September. The future value of the loan on 7 July the following year is

[1] R2 127,27.

[2] R2 574,00.

[3] R2 600,00.

[4] R2 106,00.

[5] none of the above.

6. Neo won R120 000 in a competition and immediately deposited the money into a savings account earning 8,5% interest per annum, compounded monthly. Five months after winning, she withdrew a certain amount for her sons education. The balance in her account one year after winning the money was R99 087,42. The amount she withdrew for her sons education was

[1] R25 223,22.

[2] R30 000,00.

[3] R20 912,58.

[4] R33 000,00.

[5] R31 519,49.

7. If money is worth 12% per annum, compounded monthly, how long will it take the principal P to become four times the original value?

[1] 69,66 years

[2] 7,27 years

[3] 139,32 years

[4] 11,61 years

[5] None of the above.

8. An effective rate of 29,61% corresponds to a nominal rate, compounded weekly, of [1] 34,35%.

[2] 26,00%.

[3] 29,53%.

[4] 29,61%.

[5] none of the above.

9. Zanele borrowed money from Ted. An amount of R20 000 is due now, and R10 000 due 3 years from now. She would like to reschedule her two payments by means of one payment, 5 years from now. If a new simple interest rate of 14,75% per year is applied to the extended periods, the amount that Ted will receive 5 years from now is

[1] R47 700.

[2] R30 000.

[3] R32 950.

[4] R49 175.

[5] none of the above.

10. Thuto has an individual retirement plan. His money is invested in a money market fund that pays interest on a daily basis. Over a two year period in which no deposits or withdrawals were made, the balance of his account grew from R4 500,00 to R5 268,24. The effective interest rate over this period is

[1] 8,2%.

[2] 5,8%.

[3] 9,0%.

[4] 6,1%.

[5] 8,5%.