Introduction
Task
Instruction 1:
Watch the videos on the provided links on how to determine the Present Value of an Annuity (to borrow) as well as calculating the Future Value of an Annuity (to save). Make notes whilst watching the video and practice the calculations in order for you to familiarize yourselves with the steps.
Instruction 2:
After watching the videos, carefully read the scenarios and then answer the questions that follows. Ensure to substitute correctly and make good use of your algebraic skills.
Instruction 3:
After completing the questions, scan these pages (save as pdf.) and rename the file name to YourName_Surname. Share this files with email: imtiyaazadams2908@gmail.com
Process
Here are the links to:
Future Value Annuities: - Determining 
https://youtu.be/lPrRj6G61eE
- Determining 
https://youtu.be/RbbwWdzG9mc
Present Value Annuities: - Determining 
https://youtu.be/zVHIAnOk_1c?list=PLyQONR8EmgB5kfTEMxdkVyGrVPlHA_1Z2
- Determining https://youtu.be/b8IGrfun3fk
Alternative links to:
Future Value Annuities: - https://youtu.be/qI59tv5ty9M?list=LL
Present Value Annuities: - https://youtu.be/3LZwzHAFpOI?list=LL
Evaluation
| Correct Answers | Ratings | Percentage |
|---|---|---|
| 0-1 | Not able to determine investment amounts where a fixed deposit is made every month | 0-39% |
| 0-2 | Elementary skills to determine investment amounts where a fixed deposit is made every month | 40-59% |
| 0-3 | Substantial ability to determine investment amounts where a fixed deposit is made every month | 60-79% |
| 0-4 | Outstanding ability to determine investment amounts where a fixed deposit is made every month | 80-100% |
Conclusion
Question 1
John decides to purchases a house at R700 000 and makes a home loan with the interest rate of 16% p.a. compounded monthly over 30 years.
1.1) Calculate the monthly repayments.
1.2) Calculate the outstanding balance immediately after his 23rd payment.
Consider the following formula:
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Question 2
Jeff is saving for his retirement 25 years from now by opening a savings plan. He will make a fixed-deposit of R200 at the end of each month. Interest is 11% p.a. compounded semi-annually.
2.1) Calculate the future value of Jeff’s investment.
2.2) Determine the amount of the fixed-deposit if Jeff wants to have R 80 000 when he retires.
Consider the following formula:
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Credits
Bibliography:
Matric revision: Maths: Financial Mathematics (3/6): Future value, Example 1. 2013. [Film] South Africa: wcednews.
Matric revision: Maths: Financial Mathematics (4/6): Future value, Example 2. 2013. [Film] South Africa: wcednews.
Matric revision: Maths: Financial Mathematics (5/6): Present value. 2013. [Film] South Africa: wced.
Matric revision: Maths: Financial Mathematics (6/6): Outstanding balance, Question 1.2 & Reflections. 2013. [Film] South Africa: wcednews.
Working with Future Value Annuities. 2014. [Film] South Africa: Mindset.
Working with Present Value Annuities. 2014. [Film] South Africa: Mindset.