8.1 RI 430,77 was invested in a fund paying i% p.a. compounded monthly. After 18 months the fluid had a value of RI 711,41. Calculate i. (4)
8.2 A father decided to buy a house for his family for R800 000. He agreed to pay monthly investment of RIO 000 on a loan which incurred interest at a rate of 14% p.a. compounded monthly. The first payment was made at the end of the first month.
8.2.1 Show that the loan would be paid off in 234 ninths.
8.2.2 Suppose the father encountered unexpected expenses and was unable to pay any investments at the end of the 120th, 121’t, 122nd and 123’d months. At the end of the 124t° month he increased his payment so as to still pay off the loan in 234 months by 111 equal monthly payments. Calculate the value of this new investment.
(4)
