End of chapter Exercise 9 – 7:
1.An amount of R 6330 is invested in a savings account which pays simple interest at a rate of 11% p.a..
Calculate the balance accumulated by the end of 7 years.
2.An amount of R 1740 is invested in a savings account which pays simple interest at a rate of 7% p.a..
Calculate the balance accumulated by the end of 6 years.
3.Adam opens a savings account when he is 13. He would like to have R 50 000 by the time he is 18.
If the savings account offers simple interest at a rate of 8,5% per annum, how much money should he
invest now to reach his goal?
4.When his son was 4 years old, Dumile made a deposit of R 6700 in the bank. The investment grew at a
simple interest rate and when Dumile’s son was 24 years old, the value of the investment was R 11 524.
At what rate was the money invested? Give your answer correct to one decimal place.
5.When his son was 7 years old, Jared made a deposit of R 5850 in the bank. The investment grew at a
simple interest rate and when Jared’s son was 35 years old, the value of the investment was R 11 746,80.
At what rate was the money invested? Give your answer correct to one decimal place.
6.Sehlolo wants to invest R 6360 at a simple interest rate of 12,4% p.a.
How many years will it take for the money to grow to R 26 075? Roundupyour answer to the nearest
year.
7.Mphikeleli wants to invest R 5540 at a simple interest rate of 9,1% p.a.
How many years will it take for the money to grow to R 16 620? Roundupyour answer to the nearest
year.
8.An amount of R 3500 is invested in an account which pays simple interest at a rate of 6,7% per annum.
Calculate the amount of interest accumulated at the end of 4 years.
9.An amount of R 3270 is invested in a savings account which pays a compound interest rate of 12,2% p.a.
Calculate the balance accumulated by the end of 7 years. As usual with financial calculations, round
your answer to two decimal places, but do not round off until you have reached the solution.
10.An amount of R 2380 is invested in a savings account which pays a compound interest rate of 8,3% p.a.
Calculate the balance accumulated by the end of 7 years. As usual with financial calculations, round
your answer to two decimal places, but do not round off until you have reached the solution.
11.Emma wants to invest some money at a compound interest rate of 8,2% p.a.
How much money should be invested if she wants to reach a sum of R 61 500 in 4 years’ time? Round
up your answer to the nearest rand.
12.Limpho wants to invest some money at a compound interest rate of 13,9% p.a.
How much money should be invested if she wants to reach a sum of R 24 300 in 2 years’ time? Round
up your answer to the nearest rand.
13.Calculate the compound interest for the following problems.
a)A R 2000 loan for 2 years at 5% p.a.
b)A R 1500 investment for 3 years at 6% p.a.
c)A R 800 loan for 1 year at 16% p.a.
14.Ali invests R 1110 into an account which pays out a lump sum at the end of 12 years.
If he gets R 1642,80 at the end of the period, what compound interest rate did the bank offer him? Give
your answer correct to one decimal place.
15.Christopher invests R 4480 into an account which pays out a lump sum at the end of 7 years.
If he gets R 6496,00 at the end of the period, what compound interest rate did the bank offer him? Give
your answer correct to one decimal place.
16.Calculate how much you will earn if you invested R 500 for 1 year at the following interest rates:
a)6,85% simple interest
b)4,00% compound interest350 9.6. Chapter summary