QUESTION 1

The present value of R800 to be received 8 years from today with an interest rate of 12% per year

 

QUESTION 2

The future value of R20 000 invested today in an account earning 12% interest over the next 7 years

 

QUESTION 3

Find the present value of the following stream of cash flows by assuming that the company has

an opportunity cost of 9%:

Year Amount

 

1-4 R2 000 per year

5-6 R5 000 per year

 

QUESTION 4

Calculate the growth rate of the following stream of cash flows:

2014: R1 450

2013: R1 300

2012: R930

2011: R700

2010: R500

 

QUESTION 5

Calculate the future value of R20 000 invested today in a savings account for 10 years at a 12%

p.a. compounded interest rate. Interest is compounded semi-annually.

 

QUESTION 6

Calculate the difference between R5 000 invested at 12% p.a. compounded interest for 6 years

if

• interest is compounded annually

• interest is compounded monthly

 

QUESTION 7

Gerhard is saving up to buy a new motorbike costing R120 000. If he deposits R50 000 into a

bank account earning interest at 16% per year, interest compounded quarterly, calculate the

number of years he will need to wait before he will be able to buy the motorbike.

Alpha Geek

(8)

Status NEW Posted 19 Jun 2017 11:06 AM My Price 7.00

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file 1497871338-1228590_1_636332024739140200_Time.xlsx preview (23 words )

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