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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
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, eg
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.
You have a lump sum of R to invest. The bank offers you an interest rate of per annum.
Calculate how much you will receive after stx years if interest is compounded halfyearly.
Calculate how much you will receive after five years if interest is compounded quarterly.
Calculate the effective annual rate of Interest EAR as a percentage if interest is compounded dally.
You need R in four years' time.
Calculate how much you should invest today, at Interest per onnum, if interest is compounded annually.
Calculate how much you should invest today, at interest per annum, if interest is compounded monthly.
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