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FIN2602 Assignment
2 (COMPLETE
ANSWERS) Semester
1 2026 - DUE April
2026
NO PLAGIARISM
[Pick the date]
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of
the contents of the document.]
, Exam (elaborations)
FIN2602 Assignment 2 (COMPLETE
ANSWERS) Semester 1 2026 - DUE April
2026
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FIN2602 Assignment 2 (COMPLETE ANSWERS) Semester 1 2026 - DUE April
2026; 100% TRUSTED Complete, trusted solutions and explanations. For
assistance, Whats-App 0.8.1..2.7.8..3.3.7.2... Ensure your success with us..
QUESTION 1 (TIME VALUE OF MONEY) (16 marks) 1.1 Calculate the future
value of a R3000 lump sum which is invested today, and which earns simple
interest of 10% per annum, over 15 years. (3) 1.2 Calculate the amount of
money Tornado Tower would have if he invested R1 200 in his savings
account for one year at a rate of 12% per annum simple interest. (3) 1.3 Use
information in 2.1 above to calculate how much Tornado Tower will have in
his account after two years. (2) 1.4 Calculate the future value of an annuity
in which R150 is invested annually and which earns a compound interest at
12% per annum for 15 years. (3) 1.5 Mama Lion will receive R100 000 over
20 years from a retirement annuity. Will this be enough for her with which to
retire? Give reasons for your answer. Assume an inflation rate at 10%. (5)
1.1 Future value of a lump sum (Simple Interest)
Using the simple interest formula:
FV=P(1+rt)FV = P(1 + rt)FV=P(1+rt)
Where:
P=3000P = 3000P=3000
FIN2602 Assignment
2 (COMPLETE
ANSWERS) Semester
1 2026 - DUE April
2026
NO PLAGIARISM
[Pick the date]
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of
the contents of the document.]
, Exam (elaborations)
FIN2602 Assignment 2 (COMPLETE
ANSWERS) Semester 1 2026 - DUE April
2026
Rating
-
Sold
-
Pages
9
Grade
A+
Uploaded on
23-04-2026
Written in
2025/2026
FIN2602 Assignment 2 (COMPLETE ANSWERS) Semester 1 2026 - DUE April
2026; 100% TRUSTED Complete, trusted solutions and explanations. For
assistance, Whats-App 0.8.1..2.7.8..3.3.7.2... Ensure your success with us..
QUESTION 1 (TIME VALUE OF MONEY) (16 marks) 1.1 Calculate the future
value of a R3000 lump sum which is invested today, and which earns simple
interest of 10% per annum, over 15 years. (3) 1.2 Calculate the amount of
money Tornado Tower would have if he invested R1 200 in his savings
account for one year at a rate of 12% per annum simple interest. (3) 1.3 Use
information in 2.1 above to calculate how much Tornado Tower will have in
his account after two years. (2) 1.4 Calculate the future value of an annuity
in which R150 is invested annually and which earns a compound interest at
12% per annum for 15 years. (3) 1.5 Mama Lion will receive R100 000 over
20 years from a retirement annuity. Will this be enough for her with which to
retire? Give reasons for your answer. Assume an inflation rate at 10%. (5)
1.1 Future value of a lump sum (Simple Interest)
Using the simple interest formula:
FV=P(1+rt)FV = P(1 + rt)FV=P(1+rt)
Where:
P=3000P = 3000P=3000
