FIN2602 ASSIGNMENT 2 2026
DUE APRIL 2026
QUESTION 1 (Time Value of Money)
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.
Simple interest formula
A=P(1+r×t)A=P(1+r×t)
P=R3 000P=R3000
r=10%=0.10r=10%=0.10
t=15 yearst=15 years
A=3 000×(1+0.10×15)A=3000×(1+0.10×15)A=3 000×(1+1.5)A=3000×(1+1.5)A=3 000×
2.5A=3000×2.5A=R7 500A=R7500
R7,500
1.2 Amount after 1 year – R1,200 @ 12% simple interest p.a.
A=1 200×(1+0.12×1) A =1200×(1+0.12×1)A=1 200×1.12A =1200×1.12A =R1 344A=
R1344
R1,344
DUE APRIL 2026
QUESTION 1 (Time Value of Money)
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.
Simple interest formula
A=P(1+r×t)A=P(1+r×t)
P=R3 000P=R3000
r=10%=0.10r=10%=0.10
t=15 yearst=15 years
A=3 000×(1+0.10×15)A=3000×(1+0.10×15)A=3 000×(1+1.5)A=3000×(1+1.5)A=3 000×
2.5A=3000×2.5A=R7 500A=R7500
R7,500
1.2 Amount after 1 year – R1,200 @ 12% simple interest p.a.
A=1 200×(1+0.12×1) A =1200×(1+0.12×1)A=1 200×1.12A =1200×1.12A =R1 344A=
R1344
R1,344
