Financial mathematics

1. Determine the amount that John will have if he invest R1 000 for 15 months at an interest rate of 10% simple interest per annum. (3) 2. Tracy borrows R4 100 from a bank to buy a piece of jewellery. The loan is for 2 years at an interest rate of 16,5% simple interest per annum. (a) What will the total amount be that she owes the bank? (3) (b) How much interest did she pay? (1) 3. Calculate the simple interest rate if R728 interest was earned on an investment of R5 240 for 3 years (3) 4. How long will it take to double an amount of money invested at 12,5% p.a. simple interest? (3) Question 2 (12) 1. Alex invested a certain amount of money in a bank; at the maturity date he will receive R5000 Applying the discount rate of 4.8%, what amount would he get, asking to be paid in advance of 3 months? (3) 2. Joseph agrees to pay R3000 in one year at an interest rate of 14%. The bank subtracts the discount of 14% of R3000 and give the rest to joseph. Find the amount of the discount and the proceeds to joseph. (3) 3. The value of a car depreciated from R240 000 to R110 000 in 5 years. What is the rate of depreciation? (3) 4. A piece of a jewellery cost R15 000 and it depreciate at a rate of 13% simple interest per annum. How much will the jewellery cost after 10 years? (3) Question 3 (15) 1. On June 1, 2006, Sheila borrows R2000 at 7%. She pays R800 on August 17, 2006; R400 on November 20, 2006 and R500 on February 2, 2007 What is the balance due on April 18, 2007 using United States rule and Merchants rule. (15)