Answered

At Westonci.ca, we make it easy to get the answers you need from a community of informed and experienced contributors. Discover comprehensive solutions to your questions from a wide network of experts on our user-friendly platform. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

QUESTION 3
3.1
Jacob wants to invests R500 000 in a savings scheme for a period
of 4 years with the hope of buying a Range-Rover which is priced
at R750 000.
The options are available to him:
BANK A offers him 14% per annum at simple interest.
BANK B offers him 12.4% per annum, compounded weekly.
3.1.1
Determine the value of Jacob's investment if he opted to invest with
BANK A.
(2)
3.1.2
Determine the value of Jacob's investment if he opted to invest with
BANK B.
(3)
3.1.3
The price of a new Range-Rover is inflation-linked with an average
increase of 8% per annum.
If Jacob chose the best investment, calculate the difference
between the inflated cost of the Range-Rover and the amount he
has saved in four years.
Indicate whether there is a shortfall or surplus if he chooses the
best investment? Show all calculations.
(4)

​

Sagot :

Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.