8.1 The purchase price of a car five years ago was R200 000. The current book value of the car is R85 000. Using the reducing-balance method of deprecation, calculate the annual rate of deprecation. (3)
8.2 An amount of money was invested at a rate of 8,5% p.a., compounded quarterly.
Calculate the effective interest rate per annum of this investment. (3)
8.3 Susan made an initial deposit of R28 000 into an investment account. Three years
later she made another deposit of R12 000. She withdrew R6 500 from the account 5 years after the initial deposit was made. The interest rate for the first 4 years was 12% p.a., compounded monthly. Thereafter the interest rate changed to 12,9% p.a., compounded half-yearly.
8.3.1 Calculate how much Susan had in this investment account 2 years after the initial deposit was made. (2)
8.3.2 How much will the investment be worth 8 years after the initial deposit was made? (5)
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