Assignment 2 Semester 1 2026
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Due Date: April 2026
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, QUESTION 1: TIME VALUE OF MONEY
1.1 Future value of a lump sum at simple interest
FV
= PV(1 + in)
= 3 000(1 + 0.10 × 15)
= R7 500
1.2
FV
= PV(1 + in)
= 1 200(1 + 0.12 × 1)
= R1 344
1.3 Amount Tornado Tower will have after two years
FV
= PV(1 + in)
= 1 200(1 + 0.12 × 2)
= 1 200(1.24)
= R1 488
1.4 Future value of an annuity at compound interest
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