Note to student

Show all the formulae and steps of the calculations. If you are using a calculator, show all the calculator inputs. You are required to round off the final answer only, to two decimal places, e$.$g$.56\mathrm{.}837=56\mathrm{.}84.$

Please do not round off answers for calculations you do before the final answer. No marks will be awarded if you round off intermediate workings before the final answer.

$2\mathrm{.}1$ You have a lump sum of R$600000$ to invest. The bank offers you an interest rate of $8\%$ per annum.

$2\mathrm{.}1\mathrm{.}1$ Calculate how much you will receive after stx years if interest is compounded half$-$yearly.

$2\mathrm{.}1\mathrm{.}2$ Calculate how much you will receive after five years if interest is compounded quarterly.

$2\mathrm{.}1\mathrm{.}3$ Calculate the effective annual rate of Interest $($EAR$)$ as a percentage if interest is compounded dally.

$2\mathrm{.}2$ You need R$800000$ in four years' time.

$2\mathrm{.}2\mathrm{.}1$ Calculate how much you should invest today, at $6\%$ Interest per onnum, if interest is compounded annually.

$(2)$

$2\mathrm{.}2\mathrm{.}3$ Calculate how much you should invest today, at $7\%$ interest per annum, if interest is compounded monthly.