Calculate the Future Value of Lebogang's offer. Calculate the Present Value of Lesego's offer. Calculate the future value if you Invest in the Bank

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Q 12

You are selling your Harry Davidson to two potential buyers. Lebogang who is offering R12000 today
as your required market price or Lesego who is offering you R12500 one year later.
Being a student of industrial engineering, you are investigating on the option to invest in the bank at
an interest rate of 5%. Choose the best option by clearly showing all steps and formulas.
i.
ii.
Calculate the Future Value of Lebogang's offer.
Calculate the Present Value of Lesego's offer.
Calculate the future value if you Invest in the Bank
Transcribed Image Text:You are selling your Harry Davidson to two potential buyers. Lebogang who is offering R12000 today as your required market price or Lesego who is offering you R12500 one year later. Being a student of industrial engineering, you are investigating on the option to invest in the bank at an interest rate of 5%. Choose the best option by clearly showing all steps and formulas. i. ii. Calculate the Future Value of Lebogang's offer. Calculate the Present Value of Lesego's offer. Calculate the future value if you Invest in the Bank
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