QUESTION ONE [20 MARKS] This Question consists of four INDEPENDENT PARTS, namely - Part A, B, C and D. Part A You are presented with the following two choices on a gift from your father for your recent performance in your studies at the university. Option 1 Option 2 Receive R1 000 in cash today. Receive R2 000 in 5 years' time from today. Assume required rate of return is 10% REQUIRED Based on the relevant calculations, identify the best option from the above, [6] Part B You plan to start saving R1 500 per quarter in arrears towards your retirement package of R300 000. The interest rate on your savings is expected to be 9% per annum, compounded quarterly REQUIRED Calculate the number of periods in quarters that it will take for your investment to grow to the required retirement package, [5] Part A retail store sells a stereo on credit arrangement charging interest rate of 24% per annum, compounded monthly, and requiring payments of R75 per month in advance for three (3) years. REQUIRED Calculate the cash price of the stereo, (5) 21 Page Part D Afri-spoor (Pty) Ltd sells a second hand flatbed trailer at cash price of R95 000 and requires credit clients to pay a deposit of 15% at inception of the contract, with the balance payable in equal monthly instalment, payable in advance over a ten (10) year period. Interest rate is 9% per annum, compounded monthly. REQUIRED Calculate the monthly instalments required to settle the balance of the debt in the case of a credit client. [4]