The company prepares for this expenditure by establishing three different investments.
- $7000 is invested at a simple interest rate of 6.25% per annum for eight years.
Determine the total value of this investment at the end of eight years. (2 marks)
- $10 000 is invested at an interest rate of 6% per annum compounding quarterly for eight years.
Determine the total value of this investment at the end of eight years.
Write your answer correct to the nearest dollar. (1 mark)
- $500 is deposited into an account with an interest rate of 6.5% per annum compounding monthly.
Deposits of $200 are made to this account on the last day of each month after interest has been paid.
Determine the total value of this investment at the end of eight years.
Write your answer correct to the nearest dollar. (1 mark)