# Question 6

6.1 On 31 January 2020, Tshepo made the first of his monthly deposits of RI 000 into a savings account. He continues to make monthly deposits of RI 000 at the end of each month up until 31 January 2032. The interest rate was fixed at 7,5% p.a., compounded monthly

6.1.1 What will the investment be worth immediately after the last deposit? (4)

6.1.2 If he makes no further payments but leaves the money in the account, how much money will be in the account on 31 January 2033? (2)

6.2 Jim bought a new car for R250 000. The value of the car depreciated at a rate of 22% p.a. annually according to the reducing-balance method. After how many years will its book value be R92 537,64? (3)

6.3 Mpho is granted a loan under the following conditions:

• The interest rate is 11,3% p.a., compounded monthly.
• The period of the loan is 6 years.
• The monthly repayment on the loan is R1 500.
• Her first repayment is made one month after the loan is granted.

6.3.1 Calculate the value of the loan. (3)

6.3.2 How much interest will Mpho pay in total over the first 5 years? (4)

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