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Make use of the relevant interest and discount values provided in the table below to determine: a) The future value of a principal of N$
Make use of the relevant interest and discount values provided in the table below to determine: a) The future value of a principal of N$ 20 000 which is invested at 12% interest, compounded five (5) years. (3) b) The Present value amount of N$ 20 000 which is receivable in five years from now when the cost of capital is 12%. (3) c) The annual deposit which is required to accumulate a future amount of N$120 000 over a period of four (4) years, when the interest rate is 12%. (3) d) The annual repayments on a loan of N$200 000 repayable over five (5) years at an interest rate of 12% (3) 9 BUSINESS FINANCE TUTORIAL LETTER SEMESTER 2/2021 BBF6125 Extract of 12% FV and PV interest factors from the relevant tables for five (5) years: All factors 12% Year 1 Year 2 Year 3 Year 4 Year 5 FV interest factor (FVIF) 1.120 1.1254 | 1.405 1.574 1.762 FV interest factor for an annuity (FVIFA) 1.000 2.120 3.374 4.779 6.353 PV interest factor (PVIF) 0.893 0.797 0.712 0.636 0.567 FV interest factor for an annuity (FVIFA) 0.893 1.690 2.402 3.037 3.605
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