TIME VALUE OF MONEY

Question 1 1) You are to repay a loan of R 14 000 over 320 months. If the interest rate is 48% per annum compounded monthly. Calculate the following: a) Given a residual of O, determine the interest paid from month 25 to 36 b) Determine the principle paid between months 25 and 36 c) What is the interest paid during the 48th period? 2) Your friend is celebrating her 29th birthday today and wants to start saving for her anticipated retirement at age 60. She wants to be to withdraw R 150 000 from her savings account on each birthday for 25 years following her retirement. The first withdrawal is expected to be on her 61th birthday. The discount rate post-retirement is anticipated to be 9% per annum (pa). Her local bank has offered her favourable terms of 8% on any savings pre-retirement. She wants to make equal, annual payments on each birthday into the savings account for her imminent retirement. What amount must your friend deposit annually into the savings account from age 29 is she expects to receive the desired withdrawals following retirement? 3) Two brothers, Andile and Thabo - receive an inherence of R 35 000 each. Andile invests his money for 5 years at 5% per annum (p.a) compounded quarterly. Thabo invests his money for 5 years at 5.75% p:a semi-annually. At the end of that time they both agree to pool their money into one account for further 5 years and invest at 5% p:a compounded monthly. What is the accumulated principal at the end of the 10 years period? Question 1 1) You are to repay a loan of R 14 000 over 320 months. If the interest rate is 48% per annum compounded monthly. Calculate the following: a) Given a residual of O, determine the interest paid from month 25 to 36 b) Determine the principle paid between months 25 and 36 c) What is the interest paid during the 48th period? 2) Your friend is celebrating her 29th birthday today and wants to start saving for her anticipated retirement at age 60. She wants to be to withdraw R 150 000 from her savings account on each birthday for 25 years following her retirement. The first withdrawal is expected to be on her 61th birthday. The discount rate post-retirement is anticipated to be 9% per annum (pa). Her local bank has offered her favourable terms of 8% on any savings pre-retirement. She wants to make equal, annual payments on each birthday into the savings account for her imminent retirement. What amount must your friend deposit annually into the savings account from age 29 is she expects to receive the desired withdrawals following retirement? 3) Two brothers, Andile and Thabo - receive an inherence of R 35 000 each. Andile invests his money for 5 years at 5% per annum (p.a) compounded quarterly. Thabo invests his money for 5 years at 5.75% p:a semi-annually. At the end of that time they both agree to pool their money into one account for further 5 years and invest at 5% p:a compounded monthly. What is the accumulated principal at the end of the 10 years period