$3\mathrm{.}1$ 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. $(5)$

$3\mathrm{.}2$ 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. $(5)$

$3\mathrm{.}3$ 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 $11\%.(5)$

$3\mathrm{.}4$ 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.