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Calculate the amount that Tumi will be able to Invest in the bank, if he is going to invest the total amount he has set aside.
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16 stepsQuestion 1
1.1 Calculate the amount that Tumi will be able to invest in the bank, if he is going to invest the total amount he has set aside.
Calculate the total number of months Tumi saved.
Calculate the total amount Tumi saved.
The amount Tumi will be able to invest is .
1.2 Determine the Interest he will earn from the bank.
Identify the principal amount, interest rate, and time.
Principal () = R19 200 (from 1.1)
Interest rate () = 12.5% p.a. = 0.125
Time () = 36 months = years = 3 yearsCalculate the simple interest using the formula .
The interest Tumi will earn is .
1.3 What is the total amount that he will receive at the end of the investment period?
Calculate the total amount by adding the principal and the interest.
The total amount Tumi will receive is .
Question 2
2.1 Calculate how much Tumi had to put down as a deposit for the house.
Calculate the deposit amount, which is 11.5% of the house price.
The deposit for the house is .
2.2 If Tumi uses the money he received from the bank at the end of his investment term, will he have enough to pay for the deposit? Show by means of calculations.
Compare the amount received from the bank (from 1.3) with the deposit amount (from 2.1).
Amount received from bank = R26 400
Deposit required = R63 135Determine if the amount received is enough.
Since , Tumi will not have enough money to pay for the deposit using only the investment.
Tumi will need an additional amount of:No, Tumi will for the deposit.
2.3 Tumi learns that he will have to pay a monthly instalment of R5 380 over a period of 20 years.
2.3.1 If the interest rate does not change, Show with calculations that the total amount paid, including the deposit will be R1 354 335.
Calculate the total number of months for the instalments.
Calculate the total amount paid in instalments.
Calculate the total amount paid, including the deposit.
The total amount paid, including the deposit, is indeed .
2.3.2 How much more money would Tumi have paid by the end of the 20 years?
Calculate the difference between the total amount paid and the original house price.
Tumi would have paid more.
2.3.3 Calculate the percentage interest that Tumi would have paid by the end of 20 years if the monthly instalment did not change. Round your answer off to one decimal place.
Determine the actual loan amount.
Calculate the total interest paid on the loan.
Calculate the percentage interest relative to the loan amount.
Round the answer to one decimal place.
The percentage interest Tumi would have paid is approximately .
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