4.1.1. According to the UIF contribution table for 2021, the maximum monthly earnings used for UIF calculations is R17,712. Therefore, Percival's monthly UIF contribution will be 1% of R17,712, which is R177.12.
4.1.2. The calculation of Provident Fund contributions varies depending on the employer's policy. Assuming the employer's contribution is 10% of the employee's salary, Percival's monthly Provident Fund contribution will be 10% of R50,000 (which is his gross monthly salary) which is R5,000.
4.1.3. The formula to calculate compound interest is A = P(1+r/n)^nt, where A is the final amount, P is the principal amount, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the time period in years.
Using this formula, we can calculate Charles's total amount after 20 years:
A = 176,000(1+0.18/1)^(1*20)
A = 176,000(1.18)^20
A = 176,000(17.45)
A = R3,058,800
Therefore, Charles will receive R3,058,800 after 20 years with an interest rate of 18% per year compounded yearly.
question 4
4.1. percival gross salary is 600 000 per annum.
4.1.1 calculate his UIF monthly contributions.
4.1.2. calculate his provident fund monthly contributions.
4.1.3. charles invested R 176 000 with bank X for 20 years, which has an interest rate of 18 % per year compounded yearly. how much will he receive after 20 years?
1 answer