Worksheet 9: Finance, Growth and Decay

Grade 11 Mathematics

1. Joe buys a car for R153 000. If the car depreciates at a rate of 12% per annum for 4 years,
determine the value of Joe’s car if
a) the straight line method is used. (R)
b) the reducing balance method is used (R)

2. Sabrina invests R10 000 in an account for 2 years. Determine the final amount if
a) interest is paid at 5% p.a. compounded weekly. (R)
b) interest is paid at 15% p.a. compounded quarterly. (R)

3. Find the missing value if the straight line method of depreciation is used: (R)
a) A=? P = R680 = 10.8% n= 5.5 years
b) A = R3 940 P=? = 8.3% n = 6 years
c) A = R3 950 P = R7 640 =? n = 7 years
d) A = R4 300 P = R4 630 = 6.3% n=?
e) A = R8 070 P=? = 8% n = 4 years
f) A=? P = R5 290 = 6.6% n = 8 years
g) A = R5 360 P = R6 210 =? n = 4.5 years
h) A = R7 420 P = R8 110 = 14.2% n=?
i) A = R550 P=? = 4.4% n = 1 year
j) A = R1 420 P = R4 480 =? n = 9 years
k) A = R4 400 P = R7 790 = 15% n=?
l) A=? P = R980 = 7.6% n = 1.5 years

4. Find the missing value if the reducing balance method of depreciation was used: (C)
a) A=? P = R6 080 = 7.7% compounded semi-annually n = 3 years
b) A = R5 830 P = R7 190 = ? compounded quarterly n = 8 years
c) A = R6 330 P=? = 3.4% compounded daily n = 4 years
d) A = R4 800 P = R7 930 = ? compounded monthly n = 5 years
e) A=? P = R1 810 = 2.3% compounded weekly n = 6 years
f) A = R12 200 P=? = 9.5% compounded annually n = 7 years
g) A = R289 000 P = R544 000 = ? compounded monthly n = 10 years
 h) A = R833 P=? = 2.7% compounded quarterly n = 1.5 years
i) A=? P = R5 310 = 3.8% compounded monthly n = 5 years
j) A = R43 100 P = R68 400 = ? compounded semi-annually n = 6.5 years
k) A = R7 460 P=? = 4.99% compounded daily n = 3 years
l) A=? P = R9 840 = 8.5% compounded weekly n = 8 years

5. Sifiso invests R5 400 in an account paying 14% p.a. compounded semi-annually for two and
half years. Sifiso then withdraws R3000 and invests the rest of the money into an account
paying 7% p.a. compounded daily for 3 years. Sifiso then changes his investment to an
account paying % p.a. compounded monthly. After 4 years he has R9 096.92. Determine the
value of . (C)

6. Determine the effective interest rate if the interest rate offered is: (R)
a) 12% compounded weekly b) 7.6% compounded monthly
c) 9.3% compounded daily d) 4.4% compounded semi-annually
e) 7.8% compounded quarterly

7. Nigel invests R100 000 into an account for 10 years. For the first three years the interest rate
is 13% p.a. compounded quarterly. For the next 5 years the interest rate is 11% p.a.
compounded monthly and for the last 2 years the interest rate is 9.5% compounded daily.
After 7 years Nigel withdraws R50 000 from the account. Determine the amount of money
Nigel will have in the account after 10 years. (C)

8. Thabo inherits R3000 from his great aunt and decides to invest the money. The bank gives
him two options:
A: Invest the money at 15% p.a. simple interest
B: Invest the money at 10% p.a. compounded monthly.

a) If Thabo invests the money for 2 years, which option would be better for him? (C)
b) If Thabo invests the money for 10 years, which option would be better for him? (C)
c) What is the effective interest rate for option B? (R)
d) What interest rate (compounded monthly) would the bank need to offer in option B for
the value of option B to be equal to the value of option A after 7 years? (P)

9. Sibusiso purchases a flat screen T.V. for R6 000. 3 years later he decides to buy a new T.V. If
his current T.V. depreciates at a rate of 12% p.a. on a straight line method, and the inflation
rate of the T.V. is 8% p.a. determine how much money he will have to pay in to buy his new
T.V. (P)
10. Charles invests R15 000 in an account for 12 years. At the end of every second year Charles
withdraws R1 500. For the first 3 years the account earns 9.8% p.a. compounded quarterly.
Thereafter it earns 8.5% p.a. compounded weekly for the last 2 years, the money in the
account earns 9% p.a. compounded monthly. What is the final amount of money in the
account after 12 years? (P)

11. Magdeline bought a car for R300 000. For the first year her car’s value depreciated on a
straight line method at 20% p.a. For the next 2 years her car’s value depreciated at 15% p.a.
compounded monthly. Thereafter the car’s value depreciated at a rate of 12% p.a.
compounded quarterly. What is the value of Magdeline’s car after 6 years? (C)

12. In a certain town the population is decreasing at a rate of 5% p.a. compounded quarterly. If
the town council predicts that in 5 years’ time the town’s population will be 103 490 people,
how many people currently live in the town? (C)

13. A particular antimicrobial bathroom cleaner states that it will kill 99% of germs in 3 hours. At
what rate does the antimicrobial bathroom cleaner work if the number of germs killed is
worked out according to the reducing balance method? (P)

14. The wetness of paint is measured on a reducing balance method. After 4 hours the paint is
85% dry. Determine the rate at which the paint dries. (C)

15. George has to travel 1900km from Cape Town to Maputo. If he travels 15% of the total trip
every day, use the straight line method to determine how many kilometres he will have left to
travel after the third day. (P)

16. How long will it take an amount to halve in value if the interest rate is 10% p.a. and is
calculated using:
a) the straight line method? (P)
b) the reducing balance method? (P)