# Finance Homework Help

*label*Other

*timer*Asked: Aug 20th, 2015

**Question description**

FIN2603QUESTION 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.