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QUESTION 4 (25 Marks) 4.1. You invest R 12 000.00 at an interest rate of 10% per annum. After how many years will the investment
QUESTION 4 (25 Marks) 4.1. You invest R 12 000.00 at an interest rate of 10% per annum. After how many years will the investment grow to a value of R22 600.00 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 600 000. The business is expected to run for 4 years and the following net returns are expected. YEAR 1 : R 150 000 YEAR 2: R 180 000 YEAR 3: R 200 000 YEAR 4: R 100 000 Should you buy the business? A project of this type is expected to return at least 10% per annum. Show details of relevant calculations. (17 marks)
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