1.1 Your parents set up a trust fund for you 22 years ago that is now worth R47 866,34. If the fund earned 8% per year, how much did your parents invest? 1.2 Suppose you are offered an investment that will allow you to double your money in 9 years. You have R20 000 to invest. What is the implied rate of interest? 1.3 Suppose you have a 4-year-old son and you want to provide R55 000 in 16 years towards his college education. You currently have R5 000 to invest. What interest rate must you earn to have the R55 000 when you need it?

1.1 Your parents set up a trust fund for you 22 years ago that is now worth R47 866,34. If the fund earned 8% per year, how much did your parents invest? 1.2 Suppose you are offered an investment that will allow you to double your money in 9 years. You have R20 000 to invest. What is the implied rate of interest? 1.3 Suppose you have a 4-year-old son and you want to provide R55 000 in 16 years towards his college education. You currently have R5 000 to invest. What interest rate must you earn to have the R55 000 when you need it?

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 10E

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