6.9 CHAPTER 6. FINANCE
Step 5 : Write the final answer
The accumulated valueis R 170 , 91. (Remember to roundoff to the the nearest
cent.)Exercise 6 - 6
- Calculate the effective rate equivalent to anominal interest rate of 8 ,75% p.a. compounded
monthly. - Cebela is quoted a nominal interest rate of 9 ,15% per annum compounded every four months
on her investment of R85 000. Calculate the effectiverate per annum.
More practice video solutions or help at http://www.everythingmaths.co.za(1.) 017x (2.) 017y6.9 Formula Sheet EMBAC
As an easy reference, here are the key formulaethat we derived and used during this chapter. While
memorising them is nice (there are not many), it is the application thatis useful. Financial experts are
not paid a salary in order to recite formulae, they are paid a salary to use the right methods tosolve
financial problems.Definitions EMBAD
P Principal (the amount of money at the starting point of the calculation)
i interest rate, normally the effective rate perannum
n period for which theinvestment is made
iT the interest rate paid T times per annum, i.e. iT=Nominal Interest RateT