FINANCE Questions 1 and 2 relate to the following situation: Thando invested...
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Accounting
FINANCE
Questions 1 and 2 relate to the following situation: Thando invested R10 000 in a special savings account on 15 May at an interest rate of 15% per year, com- pounded every three months for seven months. Interest is calculated on 1 January, 1 April, 1 July and 1 October of every year. Question 1 If simple interest is used for the odd periods and compound interest for the rest of the term, the amount of interest received by Thando after seven months is [1] R901,35. [2] R1 644,57 [3] R896,95. [4R665,54. [5] none of the above. Question 2 If fractional compounding is used for the full term of seven months, the total amount of interest received is [1] [2] [3] R892,79. R898,43. R901,73. R894.04. none of the above. [5]
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