Introduction

Chapter 9.2

Chapter 9.2 explains some basic interest rate concepts. You must be able to define interest and an interest rate (or rate of interest) and to distinguish between simple interest and compound interest.

Activities for Interest Rates

1 R10 000 invested at a simple interest rate of 12% per annum will yield a monthly interest of R100.

3 The total interest paid on R60 000 invested for 2 years at an annual interest rate of 8% compounded yearly would be R9 984.