FIN2603
ASSIGNMENT 2
SECOND SEMSTER 2022
BY: MTHOMBENI : 0767297208
1
, QUESTION 1
Calculate the future value (FV) of R10 000 invested for 5 years at an interest rate of 7%, interest compounded
semi-annually.
Pv = 10 000
N = 10 (5 x 2)
i = 7% /2
Comp Fv = 14 106 Option C
QUESTION 2
Calculate the growth rate of the following stream of cash flows:
Year Cash flow
2013 R 1 700
2012 R 1 400
2011 R 1 200
2010 R 1 000
Pv = - 1 000
Fv = 1 700
N=3
Comp 1/y = 19% Option C
QUESTION 3
Calculate the present value (PV) of R100 000 received 9 years from today at an interest rate of 12%.
Fv= 100 000
N=9
1/y = 12%
Comp Pv = 36 061 Option C
2
ASSIGNMENT 2
SECOND SEMSTER 2022
BY: MTHOMBENI : 0767297208
1
, QUESTION 1
Calculate the future value (FV) of R10 000 invested for 5 years at an interest rate of 7%, interest compounded
semi-annually.
Pv = 10 000
N = 10 (5 x 2)
i = 7% /2
Comp Fv = 14 106 Option C
QUESTION 2
Calculate the growth rate of the following stream of cash flows:
Year Cash flow
2013 R 1 700
2012 R 1 400
2011 R 1 200
2010 R 1 000
Pv = - 1 000
Fv = 1 700
N=3
Comp 1/y = 19% Option C
QUESTION 3
Calculate the present value (PV) of R100 000 received 9 years from today at an interest rate of 12%.
Fv= 100 000
N=9
1/y = 12%
Comp Pv = 36 061 Option C
2
