Calculate simple interest, compound amount, and compare them for given amounts, rates, and times.

P = \text{N\5000}$$R = 8% = 0.08$$T = 3 \text{ years}$

$I = \text{N\$1200}$ The simple interest is \boxed{\text{N\1200}}$.

b) Find the compound amount if N$4000 is invested at 6% per annum compounded annually for 4 years.

P = \text{N\4000}$$R = 6% = 0.06$$T = 4 \text{ years}$

$A = \text{N\$5049.91}$ The compound amount is \boxed{\text{N\5049.91}}$.

c) Compare simple and compound interest for N$3000 at 5% over 2 years.

P = \text{N\3000}$$R = 5% = 0.05$$T = 2 \text{ years}$

$I_{simple} = 150 \times 2 = \text{N\$300}$

First, find the compound amount:

$A = \text{N\$3307.50}$ Then, find the compound interest: $I_{compound} = A - P = 3307.50 - 3000 = \text{N\$307.50}$

The simple interest is N$300. The compound interest is N$307.50. The compound interest is \boxed{\text{N\7.50 higher}}$ than the simple interest.

Question 5:

a) Convert N$10000 to US Dollars if 1 USD = 18.50 NAD.

N$10000 is approximately$\boxed{USD 540.54}$.

b) A student exchanges USD 500 to Namibian Dollars. How much do they receive?

$\text{Amount in NAD} = \text{N\$9250}$ They receive \boxed{\text{N\9250}}$.

c) Explain two factors that influence exchange rates.

• Interest Rates: Higher interest rates in a country can attract foreign investment, increasing demand for that country's currency and causing its exchange rate to appreciate.
• Inflation: A country with consistently lower inflation rates than another will see its currency's value appreciate relative to the other currency, as its purchasing power is maintained better.

Question 6:

A business invests N$8000 at 7% compound interest for 3 years and then converts the final amount to USD at an exchange rate of 1 USD = 19 NAD.

a) Calculate the final amount in NAD.

P = \text{N\8000}$$R = 7% = 0.07$$T = 3 \text{ years}$

$A = \text{N\$9800.344}$ The final amount in NAD is \boxed{\text{N\9800.34}}$.

b) Convert the final amount to USD.

Final amount in NAD = N$9800.344$
Exchange rate: 1 USD = 19 NAD

The final amount converted to USD is $\boxed{\text{USD 515.81}}$.