How much money must abc ltd invest into the interest bearing

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Question 1: ABC Ltd is a printing company, printing advertising material for SME's in Cape Town. ABC would like to buy a new printer in a year's time. The price of the printer is currently R250 000. Inflation is 3% p.a. ABC can invest money into an interest bearing account today, earning 5% interest compounded semi-annually. How much money must ABC Ltd invest into the interest bearing account today in order to have enough money to buy the printer in a year's time?

Reference no: EM132861331

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