Determine the interest earned on the investment

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Reference no: EM132209063

Question -

A. Abbey and James bought a vacant plot in Kleinkratz 15 years ago at R382000. According to FNB, property in that area grew at 8% p.a. on average. Estimate the current value of that plot. Determine the interest earned on the above investment.

B. Janine and Conrad, married couple, qualifies for a R2.255 million loan with FNB at 10.25% p.a. compounded monthly over 20 years. Determine the monthly installment.

C. Determine the interest charged for the full term for Janine and Conrad. Assume that the interest rate will stay fixed and that Janine and Conrad will pay the minimum installment throughout the term.

D. Ellen has a debt Nedbank of R21125.67. She plans to settle her debt on October 29, 2016 when her 20-year policy with Old Mutual will mature. How much must she pay Nedbank on October 29, 2016 to settle her debt? Assume that it is February 07, 2018 today and that the interest rate charged on an overdraft account is 13.75% p.a. compounded daily.

Reference no: EM132209063

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