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4.1. You invest R 45 000.00 at an interest rate of 10% per annum. After how many years will your investment grow to a value

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4.1. You invest R 45 000.00 at an interest rate of 10% per annum. After how many years will your investment grow to a value of R 76 500.00 if the interest earned is: 4.1.1. simple? (3 marks) 4.1.2. compounded? (5 marks) 4.2. You consider buying a business for R 15 00 000. The business is expected to run for 5 years and the following net returns are expected. YEAR 1: R 350 000 YEAR 2: R 450 000 YEAR 3 : R 490 000 YEAR 4: R 380 000 YEAR 5: R 420 000 Should you buy the business? A project of this type is expected to return at least 10% per annum. (17 marks)

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