1. L. Mwanza owns a perpetuity that pays K2, 000 with the first payment being made in 6 years. Find the present value with 4% per annum rate. [5 Marks]

2. You invested K3, 000 four years ago in a share of E. Nyirenda Ltd. It is now worth K5, 000. Calculate the interest rate. [5 Marks]

3. A share of Zambezi Plc grows at a rate of 5% per annum compounded annually. Calculate how long it will take the current present value of K100 per share to double in value. [5 Marks]

4. You wish to purchase a car that costs K200 000. You can borrow the funds at 8% compounded monthly for a 5 year term. The first payment is due at the end of one month. Calculate the monthly payment. [5 Marks]