SECTION E How long would it take R20000 invested today at a simple interest rate of 9% p.a. to reach an investment goal of R30000. A Approximately 5.6 years B Approximately 6.1 years C Approximately 4.7 years D Approximately 5.1 years How long would it take R20 000 invested today at a nominal annual continuously compounding (NACC) interest rate of 9% p.a. to reach an investment goal of R30 000. A Approximately 5.6 years B Approximately 4.7 years C Approximately 5.1 years D Approximately 4.3 years Use the information provided below to answer The projected annual net cash flows associated with an investment opportunity are shown below in Table 5. The expected rate of return on the investment is 12%. Year Future Cash flows Discount factor 1 220 000 2 250 000 3 300 000 4 200 000 5 180 000 Table 5: Annual net cash flows of the investment opportunity. K 0.7972 M 0.6355 0.5674 Determine the missing values represented by K, L, M, and N in Table 5. A K = 0.8929; L = R196 438; M = 0.7118 and N = R213 540 BK = 0.9009; L = R198 198; M = 0.7312 and N = R219 360 CK = 0.9174; L = R201 828; M = 0.7722 and N = R231 660 DK = 0.8929; L = R196 438; M = 0.7722 and N = R231 540 Present Values L 199 300 N 127 100 102 132 Calculate total present value of the net cash flows from the investment opportunity. A R859 028 B R902 575 C R838 510 D R866 704 If the Net Present Value of the investment opportunity is an unfavourable R11 490, what is the initial outlay? A R811 490 B R850 000 C R848 510 D R860 000 As part of the end-of-semester review of the marks obtained by third-year students in business statistics, the academic manager of Frontier Business School has captured the marks obtained by 10 randomly selected third-year students in their formative and summative assessments as shown below in Table 3. Student 1 # Formati ve assess ment 52 Summat 58 ive assess ment 2 3 68 66 91 81 4 74 70 64 74 Determine the Pearson Correlation Coefficient. A 0.5897 B 0.8459 C 0.7155 D 0.9887 46 52 7 56 69 8 57 70 Which of the following is the equation of the relationship between the predictor variable (x) and the response variable (y)? A y = 25.707 +0.9887x By = 29.796 + 0.5897x Cy= 25.707 +0.5897x Dy = 29.796 +0.9887x 9 83 Table 3: Marks obtained by 10 students in the formative and summative assessments The academic manager wants to determine whether students' performance (i.e., marks) in the formative assessment is a reliable predictor of students' performance (i.e., marks) in the summative assessment. 83 Using the simple linear regression equation, predict the marks obtained by a randomly selected third-year student in the business statistics summative assessment if the said student obtained a mark of 51 in the business statistics formative assessment. A 56 B 60 C 63 D 54 The relationship between the independent variable (IV) and the dependent variable (DV) is likely to be mediated by a third variable (MV). With regard to the statement above, which of the following is most likely to be correct? A IV = Students' performance (i.e., marks) in the formative assessment; DV = Students' performance (i.e., marks) in the summative assessment, and MV = Students' level of comfort with the venue of the assessments. B IV = Students' performance (i.e., marks) in the summative assessment; DV = Students' performance (i.e., marks) in the formative assessment, and MV = Students' level of preparation for the assessments. C IV = Students' performance (i.e., marks) in the formative assessment; DV = Students' performance (i.e., marks) in the summative assessment, and MV = Students' level of preparation for the assessments. D IV = Students' performance (i.e., marks) in the summative assessment; DV = Students' performance (i.e., marks) in the formative assessment, and MV = Students' level of comfort with the venue of the assessments. 10 62 60