1. A box of chocolates costs R 55 today. How much did it cost 3 years ago if the average rate of inflation was 11% p.a.?
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2. Milk costs R 14 for two litres. How much will it cost in 4 years time if the inflation rate is 9% p.a.?
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3. An amount of R 3500 is invested in a savings account which pays a compound interest rate of 7,5% p.a. Calculate the balance accumulated by the end of 2 years
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4. Nicola wants to invest some money at a compound interest rate of 11% p.a. How much money (to the nearest Rand) should be invested if she wants to reach a sum of R 100 000 in five years time?
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5. Morgan invests R 5000 into an account which pays out a lump sum at the end of 5 years. If he gets R 7500 at the end of the period, what compund interest rate did the bank offer him?
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6. Mpho wants to invest R 30 000 into an account that offers a compound interest rate of 6% p.a. How much money will be in the account at the end 4 years?
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7. If the current pop. of Johannesburg is 3 888 180, and the average rate of population growth in South Africa is 2,1% p.a., what can city planners expect tje pop. of Johannesburg to be in 10 years?
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8. If the ave. rate of inflation for the past few years was 7,3% p.a. and your water and electricity account is R 1425 on ave, what would you expect to pay in 6 years time?
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9. Charlie has been given R 5000 for his sixteenth birthday. Rather than spending it, he has decided to invest it so that he can put down a deposit of R 10 000 on a car on his eighteenth birthday. What compound interest rate does he need to achieve this growth?
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10. Troy is keen to buy an additional screen for his computer, advertised for R 2500 on the Internet. There is an option of paying a 10% deposit then making 24 monthly payments using a hire purchase agreement, where interest is calculated at 7,5% p.a. simple interest. Calculate what Troy's monthly payments will be.
