2.5 John Abbot bought a house for R550 000 10 years ago. He is hoping to sell the

house within the next couple of months, and wants to get a general idea of what

it might be worth. He read an article that stated that house prices have increased

by approximately 10% per annum, compounded monthly, over the past

10 years. Based on this, approximately what can John expect to receive when

he sells his house? (2)

2.6 Paul wants to buy a new car. The asking price is R250 000, and he plans to

make a deposit of 15% of the purchase price. South Bank is willing to finance

the remainder of the amount over a 48-month period at an interest rate of 10,5%

per annum, compounded monthly. Calculate Pauls monthly repayments. (2)

2.7 A father needs to make a payment of R90 000 ten years from now in order to

pay for his daughters tertiary education. How much will he need to invest today

to meet his first tuition goal if the investment earns 8% annually, compounded

monthly? (2)