FIN2602 Assignment 2 Answers - Semester 1 , 2026 | Due Date April 2026

, FIN2602 ASSIGNMENT 2 SEMESTER 1 2026 SOLUTIONS



QUESTION 1:




1.1 Future value of R3 000 (simple interest, 10%, 15 years)

Using simple interest, the interest is calculated on the original amount only.


Description Value (R)

Principal amount 3 000

Interest (3 000 × 10% × 15 years) 4 500

Future value 7 500




1.2 Tornado Tower investment after 1 year (simple interest, 12%)


Description Value (R)

Principal amount 1 200

Interest (1 200 × 12% × 1 year) 144

Total after 1 year 1 344



1.3 Tornado Tower investment after 2 years (simple interest)

Since simple interest is used, the same interest is earned each year.


Description Value (R)

Interest per year 144