8.1 Calculate the effective interest rate per annum if an investment earns 9,5% interest per
annum, compounded monthly. (3)
8.2 The value of a house increased to R764 050,60 over a period of 5 years due to inflation.
The price of the house increased at a rate of 5% p.a. compounded annually.
Calculate the original price of the house. (3)
8.3 Kamvelihle invested R28 000 into a savings account that pays interest at 7,5% p.a.
compounded monthly for the first 4 years and 11% p.a. compounded quarterly
thereafter. At the end of the 4th year, he withdrew R7 300.
8.3.1 Calculate his balance at the end of the 7th year of his investment. (5)
8.3.2 Assuming that at the end of 7 years, his balance is R42 181, 59, Kamvelihle
wants his investment to grow to R80 000 in another 5 years’ time.
How much must he deposit into the account immediately to achieve this goal if
the bank offers 8% p.a. interest compounded monthly?
Write your answer correct to the nearest rand. (5)
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