7.1 Selby decided today that he will save RI 5 000 per quarter over the next four years. He will make the first deposit into a savings account in three months’ time and he will make his last deposit at the end of four years from now.
7.1.1 How much will Selby have at the end of four years if interest is earned at 8,8% per annum, compounded quarterly? (3)
7.1.2 If Selby decides to withdraw RIOO 000 from the account at the end of th•ee years from now, how much will he have in the account at the end of four years from now? (3)
7.2 Tshepo takes out a home loan over 20 years to buy a house that costs RI 500 000.
7.2.1 Calculate the monthly instalment if interest is charged at 10,5% p.a., compounded monthly. (4)
7.2.2 Calculate the outstanding balance immediately after the 144th payment was made. (5)
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