6.1 The price of a new school bus is R540 000. The value of the bus decreases at 11% per annum according to the diminishing-balance method. Calculate the value of the bus after 8 years. (2)
6.2 Determine the effective interest rate if an investment earns interest at a nominal interest rate of 11,5% per annum, compounded quarterly. (3)
6.3 Vishnu and Landi receive R15 000 each. They decide to invest the money for a period of 8 years as follows:
Vishnu: Simple interest at 8,7% per annum. At the end of the 8 years Vishnu receives a cash bonus of 3% on the principal amount.
Landi: Interest at 6,9% per annum, compounded monthly.
6.3.1 Calculate the value of Vishnu’s investment after 8 years, including the cash bonus. (3)
6.3.2 Calculate the value of Landi’s investment after 8 years. (3)
6.4 James invests a certain amount for 5 years. The investment earns interest at 12% per annum, compounded monthly, for the full term. James withdraws R2 000 from the account after 18 months. After 5 years the value of the investment is R23 564.
What amount did James initially invest?(5)
[16]