A person takes out a loan to purchase a R 750 000 vehicle. The lending institution charges interest at a rate of 12.5% p.a. (csa). The loan will be repaid by making 36 semi-annual payments starting exactly 3 semi-annums after the loan is granted. Calculate the value of the semi-annual repayment. Answer the question by completing the answer boxes below. N for the compound interest calculation: Present value of the annuity calculation (round your answer to 2 decimal places): R Value of the semi-annual payment (round your answer to 2 decimal places): R

Q: In general terms, how does IFRS for SMEs differ from full IFRS?

A: International Financial Reporting Standards:   IFRS (International Financial Reporting Standards) is…

Q: Going beyond just calculating NPV, discuss it qualitatively. What is it used for? Is it a good…

A: Net present value is defined as the difference between the PV of the cash inflows as well as present…

Q: Why is it crucial to estimate the MARR correctly?

A: It is the minimum return rate on the project which an entity computes prior to the staring of the…

Q: What is Scenario Analysis?

A: Scenario analysis is an important step in the financial modelling. This is used to show the possible…

Q: Why is partitioning an internal rate of return important?

A: Introduction: There are two cash flow components which can form the portioning of internal rate of…

Q: Why is the declining-balance method most widely used?

A: Double-declining-balance method: The depreciation method which assumes that the consumption of…

Q: why we o or do not want to create a histogram for each variable

A: The objective of the question is to understand the reasons for creating or not creating a histogram…

Q: What is modified breakeven analysis?

A: Break even analysis refers to the financial computation that weights the new business cost, product…

Q: How is benchmarking beneficial?

A: Benchmarking is a measure which determines a company's competitive position through comparing its…

Q: How can we solve the problem by using interest table?

A: Interest table is also known as interest factor table which can be used to determine the future…

Q: what formula did you use to calculate PVIFA?

A: The acronym PVIFA stands for the present value interest factor. The present value interest factor is…

Q: What are ESOPs? What are some of their advantages anddisadvantages?

A: ESOP: Employee stock ownership plan is retirement plans for employees of the company wherein the…

Q: What is the purpose of using the high-low method?

A: High-low method: In the high-low method, the semi variable-cost approximation is calculated by using…

Q: what are the major assumptions in making this estimate for REV?

A: Analyst estimates the worth of the real estate for the clients because now the investors have also…

Q: Draw a figure to explain Elements of required return - establishing a MARR?

A: The figure is represented as below: Note: Values assumed

Q: Describe the fundamentals of Replacement-Analysis?

A: Replacement analysis is the process where it is determined whether it would be beneficial to replace…

Q: How to estimate the Residual Value?

A: Residual value means value of fixed asset left after the use of fixed assets. Residual value also…

Q: What is the difference between positive and negative predictive value?

A: Positive predictive value is the probability that subjects with a positive screening test truly have…

Q: What is multiple discriminant analysis?

A: Multiple discriminant analysis (MDA) is a statistical method used by many financial planners to…