Practice — what type is this question? (Finance Growth Decay)
Read each question and decide what type it is before revealing the answer.
Grade 11Paper 1Level 2 — Routine Procedures
Thabo invests R5 000 in an account that pays simple interest at 8% per annum. Calculate the value of his investment after 4 years.
Practice question — not sourced from a past paper.
Grade 11Paper 1Level 3 — Complex Procedures
7.1 A company bought machinery for R80 000. They use the reducing-balance method and after 5 years the machinery has a book value of R20 000. Calculate the annual rate of depreciation.
Source: DBE Mathematics Paper 1, Grade 11, November 2017, Question 7.1
Grade 11Paper 1Level 2 — Routine Procedures
7.2 Calculate the effective annual interest rate if interest is compounded at 5% per annum, compounded quarterly.
Source: DBE Mathematics Paper 1, Grade 11, November 2017, Question 7.2
Grade 11Paper 1Level 3 — Complex Procedures
7.3 Sipho invested R30 000 for 6 years. The investment earned interest at 12% per annum, compounded monthly for the first 2 years. The interest rate then changed to 10,8% per annum, compounded semi-annually for the remaining period. Calculate the value of the investment at the end of 6 years.
Source: DBE Mathematics Paper 1, Grade 11, November 2017, Question 7.3