Finance Homework Help

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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.




Tutor Answer

(Top Tutor) Daniel C.
(997)
School: UIUC
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