Question 1.1-1.4

Students are expected to show all workings

It's 1 question divided in 4 parts.

Any is fine

Brian works overtime to save for a trip around the world. He deposits R2 500 into a savings account every month. He earns an interest rate of 5% p.a., compounded quarterly REQUIRED: Calculate how much Brian will have in the account at the end of five years by using the tables below. Complete the tables below as follows, do not use symbols for currency, units or months (R. months, units), where percentages are required enter to two decimal places using a decimal point (example 15.55% or 7.00%) where figures are required enter the figure to two decimal places using a decimal point if required (example R42000 is entered as 42 000 and R 42155.65 is entered as 42 155.65) NOM P/YR EFF EFF P/YR NOM P/Y PMT I/YR N FV An IMM Graduate School student invests R800 once-off for four years at 10% p.a., compounded annually. REQUIRED: Calculate how much the R800 investment will have grown at the end of four years using the table below. Complete the table below follows, do not use symbols for currency, units or months (R, months, units), where percentages are required enter to two decimal places using a decimal point (example 15.55% or 7.00%) where figures are required enter the figure to two decimal places using a decimal point if required (example R42000 is entered as 42 000 and R 42155.65 is entered as 42 155.65) P/Y PV I/YR N FV Van Dyke has just purchased a brand-new motor vehicle to the value of R1 500 000 after winning the English Premier League (EPL) for Liverpool. Van Dyke obtained 100% financing for the vehicle over five years at an interest rate of 8% p.a., compounded monthly, with monthly instalments made at the end of every month. REQUIRED: Calculate the monthly instalments that Van Dyke will have to pay using the table below. Complete the table below follows, do not use symbols for currency, units or months (R, months, units), where percentages are required enter to two decimal places using a decimal point (example 15.55%or 7.00%) where figures are required enter the figure to two decimal places using a decimal point if required (example R42000 is entered as 42 000 and R 42155.65 is entered as 42 155.65) PAY N 1/YR L PV PMT Bolt Ltd is a prosperous sports regalia group in Gauteng. Currently, 96% of Bolt Ltd's annual sales are on credit and are expected to remain at this level in the future. Due to a large percentage of uncollectable debts, Bolt Ltd has decided to change its credit policy. You were approached to express an opinion on the effects of the proposed change in the credit policy. After further investigation, you determined the following: Bolt Ltd's current credit policy is 3/10 net 60, and the proposed credit policy is 10/10 net 45. Currently, 10% of all clients who purchase on credit make use of the cash discount. In terms oft e new credit policy, 20% of all clients who purchase on credit will make use of the cash discount. Due to the stricter proposed credit policy, the total annual credit sales will drop from R3 million to R2,5 million. Currently, the average debtors collection period is 59 days. The average debtors collection period should improve to 40 days in terms of the proposed credit policy. Bad debts, which currently amount to 7% of credit sales, will improve to 4% of credit sales with the implementation of the proposed credit policy. The opportunity cost associated with an investment in working capital is 19%. The gross profit percentage will remain unchanged at 15% REQUIRED: Perform a calculation for Bolt Ltd in which you set out the impact of the proposed change in the credit policy using the table below. Note: Assume 365 days in a year and round off all calculations to no decimals. Please take note of the required method of entering your answers in the table, review the example below. Note the spacing of the answers you enter must be as per the examples provided in the table below. EXAMPLES Calculation Amount (round to full Increase/decrease in number) profitability change in 200 000-150 000 50 000 Increase 100 000X20% 20 000 Decrease Calculation Amount Increase/decrease in profitability Change in gross profit Change in marginal investment in accounts receivable: Current less proposed policy calculation Change in marginal investment in accounts receivable opportunity cost calculation (final calculation) Change in bad debt losses Change in cost of discount Overall