4.1. A father has two sons. They both celebrate their birthday on 25 March. When each son turns 21, the father wishes to give them R 20 000 as a birthday gift. The father invests R x on 25 March 2019 (the eldest son turned 17 and the youngest son turned 13) to achieve his goal? The interest rate is 12% per annum, compounded yearly. 4.1.1. Draw a simple time-line. (4 marks) 4.1.2. How much will the father need to have in the account after withdrawing R 20 000 for the eldest son? (4 marks) 4.1.3. Hence, determine the value of x. (4 marks) 4.2. You consider buying a business for R 600 000. The business is expected to run for 4 years and the following net returns are expected. A project of this type is expected to return at least 10% per annum. YEAR CASH FLOW DISCOUNT FACTOR PRESENT VALUE 1 150 000 0.909 136 364 2 180 000 (0) 148 760 3 200 000 0.751 (ii) 4 100 000 (iii) 68 301 (iv) 4.2.1. Write down the values of (i), (i), (ii) and (iv). (8 marks) 4.2.2. Should you buy the business? Explain