QUESTION 7 7.1 Ethan invests R120 000 for a period of 4 years. He is offered an interest rate compounded monthly of 7,5%. 7.1.1 Determine the effective interest rate. (3) 7.1.2 What is the amount she will receive at the end of 4 years? (3) 7.2 A firm bought computers that cost R80 000. Using the reducing balance method calculate the value of the computers after 3 years if the rate of deprecation is 12% p.a. (3) 7.3 Chris invests an amount of money for 5 years. For the first 3 years he receives an interest rate of 12% p.a compounded quarterly. The interest rate changes to 14% compounded half yearly for the remaining years. The money grows to R95000 by the end of the 5 year period. Calculate how much Chris invested at the start of the investment. (6)