QUESTION 4 - 15 marksCalculate the following: a. The future value of R12 000 at a discount rate of 5,1% for a period of 6 years?b. Mpho will contribute R5 000 today, as well as R750 monthly for the next 10 years to retirement. What is the present value of these contributions if it is discounted at a rate of 6% per year compounded monthly? - Py120 Yrs. (2)c. Which rate is the highest? 8% per year compounded twice per year or 4% every 6 months.dWhat is the present value of the following annual cash flows: R10 000 (today), RO, R20 000, R40 000, RO , R50 000? The interest rate is 6%.
QUESTION 4 - 15 marksCalculate the following: a. The future value of R12 000 at a discount rate of 5,1% for a period of 6 years?b. Mpho will contribute R5 000 today, as well as R750 monthly for the next 10 years to retirement. What is the present value of these contributions if it is discounted at a rate of 6% per year compounded monthly? - Py120 Yrs. (2)c. Which rate is the highest? 8% per year compounded twice per year or 4% every 6 months.dWhat is the present value of the following annual cash flows: R10 000 (today), RO, R20 000, R40 000, RO , R50 000? The interest rate is 6%.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:QUESTION 4 - 15 marksCalculate the following: a. The future value of R12 000 at a discount
rate of 5,1% for a period of 6 years?b. Mpho will contribute R5 000 today, as well as R750
monthly for the next 10 years to retirement. What is the present value of these contributions if
it is discounted at a rate of 6% per year compounded monthly? - Py120 Yrs. (2)c. Which rate
is the highest? 8% per year compounded twice per year or 4% every 6 months.dWhat is the
present value of the following annual cash flows: R10 000 (today), RO, R20 000, R40 000, RO
, R50 000? The interest rate is 6%.
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