Question 5 S.1 At what annual percentage interest rate, compounded quarterly, should a lump sum be invested in order for it to double in 6 years? [5] Joe uses his inheritance money to start a small trucking business. He spends R900000 on a tnuck which depreciates by 25% per annum on a reducing balance. The cost of a new truck is expected to appreciate by 12%. Joe's truck will have to be replaced in five years' time. 5.2.1 Calculate the re-sale value of the existing truck in five years' time. [3] 5.2.2 Joe sets up a sinking fund to pay for a new truck in five years' time. How much he accumulates if he uses the old truck as a trade-in? [3] 5.2.3 At the end of each month, after the purchase of the truck, payments are made into the sinking fund account which pays interest at the rate of 9.5% p.a. Calculate the monthly payments into the fund. [5]