7.1 A company bought machinery costing R80 000. Using the reduced balance method the machinery had a book value of R20 000 after 5 years.
Calculate the rate of depreciation. (3)
7.2 Calculate the effective interest rate if interest is compounded at 5% p.a., compounded quarterly (3)
7.3 Sipho invested R30 000 for 6 years. The investment earned interest at 12% p.a., compounded monthly for the first two years. Thereafter the interest rate changed rate changed to 10.8% p.a., compounded semi-annually for the rest of the period.
Calculate the value of the investment at the end of 6 years. (No other transactions were made on the account.) (4)
7.4 Mary deposited R25 000 into a savings account with an interest rate of 18% p.a., compounded monthly. Mary withdrew R8 000 from the account 2 years after depositing the initial amount. She deposited another R4 000 into this account years after the initial deposit
What amount will Mary have 5 years after making the initial deposit in this account ? (6)