QUESTION $1$

$1\mathrm{.}1$ Match each of the following terms to their definitions. Give your answer in your answer booklet by writing the letter attached to the definition next to the question number.

$\backslash$table$[[,$Term,Definition$],[1\mathrm{.}1\mathrm{.}1,$Variance,$\backslash$table$[[$A$.$ Plan of monthly income and expenditure to$],[$help one manage their finances.$]]],[1\mathrm{.}1\mathrm{.}2,$Capital,B$.$ Money invested in a bank for a specific period.$],[1\mathrm{.}1\mathrm{.}3,$Debit card,$\backslash$table$[[$C$.$ Difference between budgeted amount and$],[$actual amount.$]]],[1\mathrm{.}1\mathrm{.}4,$Budget,D$.$ Initial sum of money invested or borrowed.$],[1\mathrm{.}1\mathrm{.}5,$Bank fees,$\backslash$table$[[$E$.$ Used to make payments for purchases so that$],[$money is immediately deducted from$],[$consumer$\text{'}$s account.$]]],[1\mathrm{.}1\mathrm{.}6,$Fixed deposit,$\backslash$table$[[$F$.$ Money paid to the bank for the services it$],[$renders$.]]]]$

$1\mathrm{.}2$ To what amount would an initial sum of R$6000$ accumulate over a period of five years if invested in each of the following ways:

$1\mathrm{.}2\mathrm{.}1$ Simple interest rate of $8\%$ p$.$a$.$

$1\mathrm{.}2\mathrm{.}2$ Compound interest rate of $7\%$ p$.$a$.$ compounded quarterly

$1\mathrm{.}3$ Mr Shark paid R$4000$ to become a partner in Eyethu Poultry Farming Ent. After $6$ years he sold his shares for R$8000.$

$1\mathrm{.}3\mathrm{.}1$ Calculate the bank interest rate $(r)$ that would give the same return if the interest were a:

a$)$ Simple interest rate

b$)$ Compound interest rate

$1\mathrm{.}3\mathrm{.}2$ Which type of interest would give better return? Give reasons for your choice.

$3$