| 6.1 | Two friends, Kuda and Thabo, each want to invest R5000 for four years. Kuda invests his money in an account that pays simples interest at 8,3% per annum. At the end of four years, he will receive a bonus of exactly 4% of the accumulated amount. Thabo invests his money in an account that pays interest at 8% p.a., compounded monthly. | |
| Whose investment will yield a better return at the end of four years? Justify your answer with appropriate calculations. | (5) |
| 6.2 | Nine years ago, a bank granted Mandy a home loan of R525000. This loan was to be repaid over 20 years at an interest rate of 10% p.a., compounded monthly. Mandy's monthly repayments commenced exactly one month after the loan was granted. | |
| 6.2.1 | Mandy decided to make monthly repayments of R6000 instead of the required R5066,36. How many payments will she make to settle the loan? | (5) |
| 6.2.2 | After making monthly repayments of R6000 for nine years, Mandy required money to fund her daughter's university fees. She approached the bank for another loan. Instead, the bank advised Mandy that the extra amount repaid every month could be regarded as an investment and that she could withdraw this full amount to fund her daughter's studies. Calculate the maximum amount that Mandy may withdraw from the loan account. | (4) |
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