Mr Ngomane started saving R2400 per month, two years ago so that he can take this money and invest it with a bank in order to put down a deposit when buying a car. He approached a bank that offered him 12.5% interest per annum, compound interest for a period of 2,5 years on the total amount saved.

Question

Asked on July 24, 2026Mathematics

This mathematics problem involves applying core mathematical principles and formulas. Below you will find a complete step-by-step solution with detailed explanations for each step, helping you understand not just the answer but the method behind it.

Accepted Answer · 2026-07-24T04:07:11.654Z

Here are the solutions to the questions: 6.2.1 Determine the monthly interest rate. Step 1: Convert the annual interest rate to a decimal. 12.5\% = (12.5)/(100) = 0.125 Step 2: Divide the annual rate by 12 to get the monthly interest rate. i_monthly = (0.125)/(12) i_monthly = 0.01041666... The monthly interest rate is approximately 0.0104. 6.2.2 Differentiate between interest and interest rate. Interest is the actual amount of money earned on an investment or paid on a loan. It is typically expressed in currency units (e.g., Rands). The interest rate is the percentage at which interest is calculated over a specific period. It is expressed as a percentage (e.g., 12.5% per annum). 6.2.3 Determine how much he would be able to invest with the bank if he invests the entire amount. Step 1: Calculate the total number of months Mr Ngomane saved. 2 years × 12 months/year = 24 months Step 2: Calculate the total amount saved. Total amount saved = Monthly saving × Number of months Total amount saved = R2400 × 24 Total amount saved = R57600 He would be able to invest R57600. 6.2.4 Determine how much he will earn at the end of the investment period. Step 1: Identify the principal amount (P), monthly interest rate (i), and total number of compounding periods (n). P = R57600 i = (0.125)/(12) Investment period = 2.5 years × 12 months/year = 30 months n = 30 Step 2: Use the compound interest formula A = P(1 + i)^n to find the future value (A). A = 57600 (1 + (0.125)/(12))^30 A = 57600 (1 + 0.01041666...)^30 A = 57600 (1.01041666...)^30 A = 57600 × 1.37000607... A = 78912.3456... He will earn approximately R78912.35 at the end of the investment period. 6.2.5 Determine how much interest he will earn at the end of the period. Step 1: Subtract the principal amount from the final amount earned. Interest earned = Final amount - Principal amount Interest earned = R78912.35 - R57600 Interest earned = R21312.35 He will earn R21312.35 in interest. Send me the next one 📸

Accepted Answer · 2026-07-24T04:07:11.654Z

Here are the solutions to the questions: 6.2.1 Determine the monthly interest rate. Step 1: Convert the annual interest rate to a decimal. 12.5\% = (12.5)/(100) = 0.125 Step 2: Divide the annual rate by 12 to get the monthly interest rate. i_monthly = (0.125)/(12) i_monthly = 0.01041666... The monthly interest rate is approximately 0.0104. 6.2.2 Differentiate between interest and interest rate. Interest is the actual amount of money earned on an investment or paid on a loan. It is typically expressed in currency units (e.g., Rands). The interest rate is the percentage at which interest is calculated over a specific period. It is expressed as a percentage (e.g., 12.5% per annum). 6.2.3 Determine how much he would be able to invest with the bank if he invests the entire amount. Step 1: Calculate the total number of months Mr Ngomane saved. 2 years × 12 months/year = 24 months Step 2: Calculate the total amount saved. Total amount saved = Monthly saving × Number of months Total amount saved = R2400 × 24 Total amount saved = R57600 He would be able to invest R57600. 6.2.4 Determine how much he will earn at the end of the investment period. Step 1: Identify the principal amount (P), monthly interest rate (i), and total number of compounding periods (n). P = R57600 i = (0.125)/(12) Investment period = 2.5 years × 12 months/year = 30 months n = 30 Step 2: Use the compound interest formula A = P(1 + i)^n to find the future value (A). A = 57600 (1 + (0.125)/(12))^30 A = 57600 (1 + 0.01041666...)^30 A = 57600 (1.01041666...)^30 A = 57600 × 1.37000607... A = 78912.3456... He will earn approximately R78912.35 at the end of the investment period. 6.2.5 Determine how much interest he will earn at the end of the period. Step 1: Subtract the principal amount from the final amount earned. Interest earned = Final amount - Principal amount Interest earned = R78912.35 - R57600 Interest earned = R21312.35 He will earn R21312.35 in interest. Send me the next one 📸

Mr Ngomane started saving R2400 per month, two years ago so that he can take this money and invest it with a bank in order to put down a deposit when buying a car. He approached a bank that offered him 12.5% interest per annum, compound interest for a period of 2,5 years on the total amount saved.

6.2.1 Determine the monthly interest rate.

6.2.2 Differentiate between interest and interest rate.

6.2.3 Determine how much he would be able to invest with the bank if he invests the entire amount.

6.2.4 Determine how much he will earn at the end of the investment period.

6.2.5 Determine how much interest he will earn at the end of the period.

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Mr Ngomane started saving R2400 per month, two years ago so that he can take this money and invest it with a bank in order to put down a deposit when buying a car. He approached a bank that offered him 12.5% interest per annum, compound interest for a period of 2,5 years on the total amount saved.

6.2.1 Determine the monthly interest rate.

6.2.2 Differentiate between interest and interest rate.

6.2.3 Determine how much he would be able to invest with the bank if he invests the entire amount.

6.2.4 Determine how much he will earn at the end of the investment period.

6.2.5 Determine how much interest he will earn at the end of the period.

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