Time Value of Money

Chapter 4 Time value of m integrityy Multiple-choice questions 4.1What pull up stakes my investiture of R100 five hundred be worth if my banking company pays me simple by-line of 9% per annum and I invest my money for 180 days? a) R4 460,55 b) R96 039,45 c) R100 550,25 d) R104 960,55 4.2A client approaches you with the news that she plans to retire on a spread worth R3 000 000. She plans to save every yr for 20 course of studys. How much must she save at the demolition of each year if the quest swan is 12% per annum? (Round bump off the answer to the nighest rand.). a) R36 800 b) R39 000 c) R41 600 d) R43 400 4.3Miriam took a hold fast of R250 000 over a 25 year period at 10% per annum. What entrust the customers outstanding symmetry be after 12 age if she makes periodic instalments? a) R1 654,43 b) R52 085,57 c) R197 913,98 d) R275 046,43 4.4I am planning to att death a European Champions soccer satisfy in Brazil. The travel means estimates the cost for the week to be R50 000. If I receive 7,5% interest per annum compounded monthly, how long will it take me to save the meter if I deposit R15 000 flat and R1 000 thereafter at the devastation of every month? (Round off the answer to the nearest decimal.) a) 8 b) 16 c) 24 d) 32 4.5What is the conflict between R2 000 invested at 12% p.a.

compounded interest for one year if: i) Interest is mensurable semi-annually, and ii) Interest is calculated monthly? a) R0,00 b) R3,35 c) R6,45 d) R13,65 4.6The value of the nominal val! uate if the effective esteem is 16% compounded semi-annually is closest to ... a) 8,00% b) 15,00% c) 18,00% d) 32,00% 4.7Calculate the effective interest rate if the nominal interest rate earned on an investing is 10% per annum but interest is calculated at the end of each month. (Round off the answer to the nearest decimal.) a) 9,57% b) 10,47% c) 11,40% d) 12,76% 4.8Mr De Villiers...If you want to make a full essay, order it on our website: BestEssayCheap.com

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