Everything Maths Grade 10

17.Bianca has R 1450 to invest for 3 years. Bank A offers a savings account which pays simple interest at a

rate of 11% per annum, whereas Bank B offers a savings account paying compound interest at a rate of

10,5% per annum. Which account would leave Bianca with the highest accumulated balance at the end

of the 3 year period?

18.Given:

A loan of R 2000 for a year at an interest rate of 10% p.a.

a)How much simple interest is payable on the loan?

b)How much compound interest is payable on the loan?

19.R 2250 is invested at an interest rate of 5,25% per annum.

Complete the following table.

Number of years Simple interest Compound interest

1

2

3

4

20

20.Discuss:

a)Which type of interest would you like to use if you are the borrower?

b)Which type of interest would you like to use if you were the banker?

21.Portia wants to buy a television on a hire purchase agreement. The cash price of the television is R 6000.
She is required to pay a deposit of 20% and pay the remaining loan amount off over 12 months at an
interest rate of 9% p.a.

a)What is the principal loan amount?

b)What is the accumulated loan amount?

c)What are Portia’s monthly repayments?

d)What is the total amount she has paid for the television?

22.Gabisile wants to buy a heater on a hire purchase agreement. The cash price of the heater is R 4800.
She is required to pay a deposit of 10% and pay the remaining loan amount off over 12 months at an
interest rate of 12% p.a.

a)What is the principal loan amount?

b)What is the accumulated loan amount?

c)What are Gabisile’s monthly repayments?

d)What is the total amount she has paid for the heater?

23.Khayalethu buys a couch costing R 8000 on a hire purchase agreement. He is charged an interest rate of
12% p.a. over 3 years.

a)How much will Khayalethu pay in total?

b)How much interest does he pay?

c)What is his monthly instalment?

24.Jwayelani buys a sofa costing R 7700 on a hire purchase agreement. He is charged an interest rate of
16% p.a. over 5 years.

a)How much will Jwayelani pay in total?

b)How much interest does he pay?

c)What is his monthly instalment?

Chapter 9. Finance and growth 351