Invest a fixed sum into a two-year fixed deposit

Reference no: EM13990612

A couple decides to save to buy a car in two years' time. They will invest a fixed sum into a two-year fixed deposit savings account that pays interest at 12% p.a. How much would they need to invest today to have R150 000 at the end of the two-year period if:

(a) interest is paid annually?

(b) interest is paid half-yearly?

Reference no: EM13990612

Questions Cloud

Set up the matrix of this game and solve : Player II chooses a number j ∈ {1, 2, 3, 4}, and Player I tries to guess what number II has chosen. Set up the matrix of this game and solve

How does insulin and glucagon secreted by pancreas function : How does the insulin and glucagon secreted by the pancreas function in glucose metabolism? How do the cardiovascular and respiratory system work together to deliver blood to the body tissues?

Find the value of the investment after two years : R2 000 is invested at 10% per annum compounded half-yearly. After three months, the interest rate changes to 12% per annum compounded monthly. Find the value of the investment after two years.

Sketch and label the hierarchy of tendons : Sketch and label the hierarchy of tendons, starting with the reticular membrane through tropocollagen.

Invest a fixed sum into a two-year fixed deposit : A couple decides to save to buy a car in two years' time. They will invest a fixed sum into a two-year fixed deposit savings account that pays interest at 12% p.a. How much would they need to invest today to have R150 000 at the end of the two-yea..

Which one of the following is a capital budgeting decision : intermediaries that raise funds from outside investors, play an active role in overseeing, advising, and monitoring the companies in which they invest, and generally do not want to own the investment forever.

What is the purpose of trabecular bone : What is the purpose of trabecular bone? What are trabeculae? What is their function?

Seasonally adjusted trend forecast estimates : (a) Use Excel to develop a time series model that Hillstone can use to prepare seasonally adjusted trend forecasts of passenger vehicle tyre sales on a quarterly basis. (b) Prepare seasonally adjusted trend forecast estimates for 2012 and 2013 on a..

How long does it take of the strontium to decay : Strontium -90 has a half-life of 28 days. Find a formula that gives the amount of strontium left after time t if you start one 200 grams. How long does it take for 80% of the Strontium to decay

User Account

All Pages