Exam (elaborations)
FIN2603 ASSESSMENT 2 SEM 1 OF 2024 EXPECTED QUESTIONS AND ANSWERS
- Course
- FIN2603 (FIN2603)
- Institution
- University Of South Africa (Unisa)
FIN2603 ASSESSMENT 2 SEM 1 OF 2024 EXPECTED QUESTIONS AND ANSWERS.
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Started on Friday, 19 April 2024, 3:03 PMState Finished
Completed on Friday, 19 April 2024, 4:21 PM
Time taken 1 hour 18 mins
Question 1 ... is the interest earned on a given deposit that has become part of the sum at the end of a specified period.
Complete
Marked out of a. Simple interest
1.00
b. Compound interest
Flag
question c. The interest rate
d. The internal rate of return
Question 2 At what annual interest rate must a single amount of R5 000 be invested for 5 years to yield approximately R7 500?
Complete
Marked out of a. 7.20%
1.00
b. 10.76%
Flag
question c. 8.45%
d. 9.86%
Question 3 Ben Johnson has arranged for a 60-day loan at an annual interest rate of 7.5% per annum. If the loan amount is R1 000 000,
Complete how much interest will Mr Johnson pay in rand terms? (Assume a 360-day year.)
Marked out of
1.00 a. R25 000
Flag
question b. R75 000
c. R0
d. R12 500
Question 4 Calculate the difference between the following two investment proposals.
Complete (a) R1 401.82 invested annually for five successive years at 9% per annum.
Marked out of
(b) R5 209.22 invested for five years at 10% per annum compound interest.
1.00
Flag a. R0
question
b. R 80.25
c. R100.35
d. R 36.10
Question 5 Calculate the future value (FV) of R15 000 invested for six years at an interest rate of 8%, compounded monthly.
Complete
Marked out of a. R26 734
1.00
b. R14 026
Flag
question c. R23 803
d. R24 260
Question 6 Calculate the growth rate of the following stream of cash flows:
Complete YEAR CASH FLOW
Marked out of
2023 R 34 600
1.00 2022 R 31 000
, Flag 2021 R 11 900
question 2020 R 10 000
a. 26%
b. 51%
c. 43%
d. 23%
Question 7 Calculate the present value (PV) of R100 000 received nine years from today at an interest rate of 12%. Interest is
Complete compounded monthly.
Marked out of
1.00
a. R37 980
Flag
question
b. R34 142
c. R27 895
d. R43 998
Question 8 Samuel, the manager of an export company, wishes to replace a machine four years from now, with a new machine that
Complete will cost R150 000 in four years time. If equal end-of-the-year deposits will be made into an account paying annual interest
Marked out of
of 10 per cent, calculate the size of the each deposit.
1.00
Flag a. R 45 345.78
question
b. R 23 535.24
c. R 29 382.38
d. R 32 320.62
Question 9 How much should Zimaza invest today at 9% interest per annum, compounded quarterly, to be able to buy a house worth
Complete R2 500 000 six years from today?
Marked out of
1.00
a. R1 954 322.19
Flag
question
b. R1 465 616.71
c. R 672 971.33
d. R1 115 564.17
Question 10 Find the present value of the following stream of cash flows by assuming that the organisation has an opportunity cost of
Complete 11%.
Marked out of Years 1–3 : R25 000
1.00 Years 4–7 : R50 000
Flag
question a. R 71 203.41
b. R174 516.94
c. R100 268.41
d. R155 268.41
Question 11 If Brett invests R5 000 at the beginning of each year at an interest rate of 8% over a ten-year period, the future value of the
Complete investment would be ...
Marked out of
1.00
a. R60 000.00
Flag
question
b. R78 227.44
c. R81 000.00
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