Teacher's Guide - Pearson

6. A 5 P1 500 000(1 1 0.089) 35 P1 937 202Exercise 4.6 (Student’s Book page 67)1. Inflation rate 5 ___________(39.98 2 36)​​ 3 ____ 100​36 1 ​5 11.1%2. P35 890 5 P25 000(1 1 i) 5∴ i 0.07499 7.5%3. A 5 7.89 3 1.0435 P8.23P29.104. Inflation rate 5 2​ _______P289.45 ​ 3 ____ ​ 1001 ​5 210.1%Note: Point out that negative inflation means that the price of consumer goodsdecreases. Although it is unlikely to happen in present times, it is not impossible.5. A 5 P135(1 1 0.073) 25 P155.43Revision Exercise (Student’s Book page 71)1. The National Bank: A 5 P12 000(1 1 0.105) 55 P19 769Invest Bank: A 5 P12 000(1 1 _____ 0.102​2 ​)105 P19 734The National Bank’s deal is better by P35, which is insignificant over a 5-yearperiod.2. P78 600 5 P49 000(1 1 i) 3∴ i 0.1706 17.1%3. a) P1 320 000 5 P682 000(1 1 i) 5∴ i 0.1411 14.1%b) P141 429 2 P73 071 5 P68 358 more VAT4. P8 200 5 P5 600(1 1 __ i​4 ​)1212​∴ i 5 4 3 (​√ ______________ P8 200 ​P5 600 ​ 2 1) 0.1291 12.9%Chapter 4: Money25