QUESTION $1$

$1\mathrm{.}1$ Business risk includes all the uncertainty that surrounds the industry in which the

business operates, and it is reflected in the variability of sales and the structure of

costs. Describe factors that may cause or increase business risk for a Toyota

dealership.

$1\mathrm{.}2$ Discuss the roles of the financial manager of Checkers Group.

$1\mathrm{.}3$ An investor deposits R$50000$ into an account which offers $7\%$ per annum interest

compounded monthly. Determine the value of the investment at the end of $8$ years.

$1\mathrm{.}4$ Nedbank Investment offers a savings account which requires a minimum

investment of R$12000.$ The account offers an interest rate of $6\%$ per year which is

compounded quarterly. Determine the annual effective interest rate for this account.

$1\mathrm{.}5$ You invest R$20000$ at the beginning of each year into a savings account yielding a

$10\%$ per annum interest compounded annually. Determine the future value of the

investment at the end of $5$ years $($annuity due$).$

$1\mathrm{.}6$ You invest R$20000$ at the end of each year into a savings account yielding a $10\%$

per annum interest compounded annually. Determine the future value of the

investment at the end of $5$ years $($ordinary annuity$).$