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The force of interest is given by: πΏ(π‘) = { 0.01 + 0.01π‘ 0 β€ π‘ < 4 0.15 β 0.003π‘ 2 4 β€ π‘ < 6 0.06 π‘ β₯ 6 (i) Find the expression for the value at time π‘ = 0 of a payment of $100 at time π‘.
Ajeet Construction Ltd is planning to take a project which initial cash outflow is 100000.The
expected cash inflows from this are tk 40000, tk25,000, tk 20000,tk 35,000, & tk.35000.
Calculate the NPV & IRR of this project, when rate of cost of capital is 15%.
A loan of R125000 is to be amortised by means of 48 equal monthly payments of R2500 starting eighteen months from now. Using Newton's method with the first guess 0.1 the next guess, rounded to four decimal places, is equal to?
Mike wants to buy a scooter that cost R10000.00, but he cannot afford to buy it cash. He opts for the hire purchase agreement, which requires a 13% deposit and 24 equal monthly instalments at an interest rate of 15% per annum, compounded monthly. Answer the following questions: a) How much will his deposit be? b) Calculate the total amount that he still must pay after the deposit. c) Calculate the monthly instalments.
Mr Sundani wants to buy a car in three years time. He starts investing R3000.00 per month at an interest rate of 13% per year, compounded monthly. Determine how much he will have after three years.
The underlying asset price is $24. The risk free interest rate is 3% and the underlying asset volatility is 25%. What is the probability that the under underlying asset price will be greater than the strike price in three year's.
Three years ago Thokozile borrowed R7 500 from Alfred. The condition was that she would pay him back in seven yearsβ time at an interest rate of 11,21% per year, compounded semi-annually. Six months ago she also borrowed R25 000 from Alfred at 9,45% per year, compounded monthly. Thokozile would like to pay off her debt four years from now.
The amount of money that Thokozile will have to pay Alfred four years from now is
[1] R36 607,98.
[2] R45 181,81.
[3] R55 336,49.
[4] R48 032,20.
[5] R54 278,92
Thulisile bought a house and managed to secure a home loan for R790 000 with monthly payments of R9 680,70 at a fixed interest rate of 13,75% per year, compounded monthly, over a period of 20 years. If an average yearly inflation rate of 9,2% is expected, then the real cost of the loan (the difference between the total value of the loan and the actual principal borrowed) is
[1] R201 642.
[2] R270 749.
[3] R588 358.
[4] R1 060 749.
[5] R87 126.
Marang borrowed money that must be repaid in nine payments. The first four payments of R2 000 each are paid at the beginning of each year. Thereafter five payments of R5 000 each are paid at the end of each year. Note there is only one payment per year. If money is worth 6,85% per year, then the present value of these payments is
[1] R33 000,00.
[2] R27 845,64.
[3] R22 588,92.
[4] R23 054,54.
[5] R27 381,02
The next coupon date that follows the settlement date of a bond is 28 October 2021. The half-yearly coupon rate is 7,375%. The accrued interest equals R5,49589%. If this is a cum interest case, the settlement date for this bond is
[1] 11 September 2021.
[2] 14 June 2021.
[3] 30 July 2021.
[4] 29 August 2021.
[5] none of the above
#340153 on Dec 2023