QUESTION FOUR [15]

4.1. An amount of R3 100 is deposited in a bank paying an annual interest rate of 6%, compounded quarterly. Find the balance after 5 years. (4)

4.2. Your goal is to travel exactly 10 years from now. You believe that you will need R40 000 in 10 years time. How much must you invest now to have at an interest rate of 7% compounded semi-annually? (6)

4.3. An investment of R300 is made at the beginning of each year for 12 years. If interest is 7% effective, how much will the investment be worth at the end of 12 years? (5)