U 11 llent earn?
5.
Komello is a Grade 11 entrepreneur who earns money by washing people's cars. He has
R5 460 that he wants to put into an account that will give him the maximum interest possible
over one year. He would like to buy a machine to assist him to become a more professional
car washer. The consultant told him that his best option would be the Quickfund investment
account which pays 10,08% interest per annum, monthly compounded.
Calculate what the equivalent monthly interest rate will be?
Calculate the interest amount which will be added to his investment at the end of the
first month.
5.3
Calculate the amount on which the interest will be calculated for the second month.
5.4 Copy and complete the table: (extend the table for the 12 month period)
5.1
5.2
Investment amount
beginning of month
Interest at the end of
month
Value of investment at
end of the month
Months
1
R 5460
2.
3
5.5
Will he have enough money at the end of the investment period to buy a Kärcher
machine which will cost R7 642?​