Mathematics Grade 9

Finance

Formulae: = ( + ) *Simple interest

= ( + ) *Compound interest

1. Determine the amount that I will have if I invest R8 000 for 5 years at an interest rate of 11% simple
interest per annum.

2. Joanne loans R4 800 from a bank to buy a washing machine. The loan is for 3 years at an interest rate
of 16,5% simple interest per annum.
a) What will the total amount be that she owes the bank?
b) How much interest did she pay?

3. Calculate the simple interest rate if R827,00 interest was earned on an investment of R6 240 for 5
years.

4. R2 320,00 is invested for two years as follows:

At 14 % p.a. simple interest
At 12 % p.a. compound interest
Which is the better investment and by how much?

5. Michael takes out a R15 000 loan from a financial institution at an interest rate of 9% compounded
annually. Calculate how much money he will owe at the end of six years.

6. Ashna wants to invest some money at a simple interest rate of 11% p.a. How much money should she
invest if she wants to reach a sum of R26 000 after 4 years?

7. At what compound interest rate do I need to invest R10 000 if I want my investment to grow to
R16 000 in 32 months? Showing all working out.

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Mathematics Grade 9
8. Palesa invests R2 000 in an account that offers her a 9.5% compound interest rate p.a. After two years
she moves her money to an investment bank that can offer her an 11.2% growth, compounded
annually, on her investment. How much is Palesa’s investment worth after 8 years?

9. At what compound interest rate do I need to invest R12 000 for my investment to grow to R 16 500 in
seven years?

10. How long will it take to double an amount of money invested at 12,5% p.a. simple interest?

11. R50 000 is invested at 10% p.a. simple interest for three years. Thereafter the total amount is
reinvested in a different financial institution at 25% p.a. compound interest for two more years. What
is the value of the investment after the five year period?

12. Ethan invests R10 000 in a saving account, where interest is calculated at 8,75% p.a. compounded
annually. After two years he invests a further R2 000 in the account and three years after that he
withdraws R 4500. Determine how much money Ethan will have at the end of 8 years.

13. Omphile wishes to have R10 000 in five years. He can invest R2 000 now. Determine the interest rate
he will need to receive compounded annually.

14. Timothy is going to travel to London after matric. His parents have given him R2 500 for his birthday.
He decides to deposit the money into a savings account with an interest rate of 4,5% simple interest for
2 years.
a) Determine how much money he will have saved after 2 years.
b) Calculate how much interest he would earn from his savings.

15. Peter needed to buy new furniture and took out a hire-purchase loan for R20 000. The interest rate
was at 11% on the loan and a 15% deposit was required. Peter paid the loan back over 2 years.
a) What is the total amount Peter would have paid on the loan, after two years?
b) If Peter paid in equal monthly payments, how much did he pay per month over the two-year
period?
c) What was the total amount Peter had to pay back?

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Mathematics Grade 9
16. Noah is keen to buy an additional screen for his computer, advertised for R2 500 on Takealot.com.
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 Noah's monthly
payments will be.

17. Mike takes out a hire-purchase loan of R20 000 from the bank in order to purchase printing equipment
for his new business. They charge a simple interest rate of 8% p.a. Mike pays a deposit of 15% and
insurance costs of 2,5% p.a. on the purchase price. Mike is expected to pay the loan back over 5 years.
a) How much does Mike pay as a deposit?
b) How much will he pay for insurance costs over the 5 years?
c) How much will Mike have repaid on the loan, including insurance costs, at the end of 5 years?

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