What this quiz covers
Grade 12 — Finance, Growth & Decay Quiz draws its questions at random from 5 questions across these topics:
- Depreciation (Reducing Balance)
- Appreciation (Inflation)
- Sinking Fund
- Loan — Outstanding Balance
- Loan — Revised Instalment
Example questions
A sample of the questions you will practise in this quiz. Work them out yourself - the full solution appears after you answer each one.
- Dumisani buys a truck for R650 000. It depreciates at 30% per annum on the reducing balance method. Calculate the depreciated value of the truck after 4 years.
- The price of a new truck appreciates, as a result of inflation, at a rate of 15% per annum. The current price of a new truck is R650 000. Calculate the value of a new truck in 4 years' time.
- Dumisani plans to replace the original truck in 4 years' time. He will use the current truck as a trade-in (worth R156 065) and pay the remaining amount in cash via a sinking fund. The sinking fund earns 9,5% per annum, compounded monthly. The first instalment is paid at the end of the first month of the 4-year period and the last instalment is made at the end of the 4 years. Calculate the monthly instalment Dumisani pays into the sinking fund.
- Harry buys a property for R1 500 000. After paying a deposit, he takes a loan for the remaining amount of R1 275 000, at an interest rate of 9,2% per annum, compounded monthly over a period of 20 years. The monthly instalment on the loan is R11 636,02. Calculate the outstanding balance of the loan after 7 years.
- After 7 years, due to financial difficulty, Harry misses 5 consecutive payments. Thereafter he continues making monthly payments into the loan account until the end of the 20-year period. Calculate the value of the new monthly instalment to settle the loan.