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FIN2601 ASSIGNMENT
02
YEAR: 2026
,Question 1
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Huxley plans to purchase a construction vehicle in three years’ time. To finance this purchase, he
will save R10 500 at the end of each year for the next three years in an account earning 8,2% interest
per year. How much will be accumulated immediately after the third deposit?
1.
R33 150,21
2.
R34 153,60
3.
R36 980,01
4.
R38 420,67
Question 2
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On the day he stops working, Elliott has accumulated R411 016 in a retirement investment account.
The funds earn interest at an annual rate of 7,10%, compounded monthly. He plans to withdraw R2
500 at the beginning of every month, starting immediately. After how many months will the balance
in the account be reduced to zero?
, 1.
16,42 years
2.
34,56 years
3.
48,19 years
4.
50,89 years
Question 3
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After selling his vehicle, Alexander agreed to receive payment in the form of a series of future cash
inflows rather than cash up front. The cash receipts will be received over the next four years as
shown below. If money is discounted at 6% per year, what is the present value of this payment
arrangement (i.e. the effective selling price of the car)?
Years 0 1 2 3 4
Cash flow R0 R3 000 R6 000 R9 000 R12 000
Plagiarism!!
FIN2601 ASSIGNMENT
02
YEAR: 2026
,Question 1
Not yet answered
Marked out of 1.00
Flag question
Question text
Huxley plans to purchase a construction vehicle in three years’ time. To finance this purchase, he
will save R10 500 at the end of each year for the next three years in an account earning 8,2% interest
per year. How much will be accumulated immediately after the third deposit?
1.
R33 150,21
2.
R34 153,60
3.
R36 980,01
4.
R38 420,67
Question 2
Not yet answered
Marked out of 1.00
Flag question
Question text
On the day he stops working, Elliott has accumulated R411 016 in a retirement investment account.
The funds earn interest at an annual rate of 7,10%, compounded monthly. He plans to withdraw R2
500 at the beginning of every month, starting immediately. After how many months will the balance
in the account be reduced to zero?
, 1.
16,42 years
2.
34,56 years
3.
48,19 years
4.
50,89 years
Question 3
Not yet answered
Marked out of 1.00
Flag question
Question text
After selling his vehicle, Alexander agreed to receive payment in the form of a series of future cash
inflows rather than cash up front. The cash receipts will be received over the next four years as
shown below. If money is discounted at 6% per year, what is the present value of this payment
arrangement (i.e. the effective selling price of the car)?
Years 0 1 2 3 4
Cash flow R0 R3 000 R6 000 R9 000 R12 000
