we 7 Four friends, Tim, Thabo, Tracy and Thandi, each received a lump sum of R12...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
we 7 Four friends, Tim, Thabo, Tracy and Thandi, each received a lump sum of R12 000. Tim invested his money in shares for a new company called Newco, Tracy invested her money in shares for a company called Womco, and Thandi bought shares in a company called Steepco. Thabo did not invest with the stock market and invested his money in an investment that guaranteed a growth in his money of 5,5% p.a. simple interest. After 3 years, Newco shares had depreciated at a rate of 2% p.a. on the straight line method, Womco shares had appreciated at a rate of 4,8% p.a. compound interest, and Steepco shares had depreciated at a rate of 2,8% p.a. on the reducing balance method. Calculate the value of each of the four friends' investments at the end of 3 years. Then state who had received the best return on their investment and who had received the worst return. we 7 Four friends, Tim, Thabo, Tracy and Thandi, each received a lump sum of R12 000. Tim invested his money in shares for a new company called Newco, Tracy invested her money in shares for a company called Womco, and Thandi bought shares in a company called Steepco. Thabo did not invest with the stock market and invested his money in an investment that guaranteed a growth in his money of 5,5% p.a. simple interest. After 3 years, Newco shares had depreciated at a rate of 2% p.a. on the straight line method, Womco shares had appreciated at a rate of 4,8% p.a. compound interest, and Steepco shares had depreciated at a rate of 2,8% p.a. on the reducing balance method. Calculate the value of each of the four friends' investments at the end of 3 years. Then state who had received the best return on their investment and who had received the worst return.
Expert Answer:
Answer rating: 100% (QA)
Calculating End Value of Investments and Ranking Returns Tim Initial investmentR12 000 Depreciation ... View the full answer
Related Book For
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0134141084
11th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs
Posted Date:
Students also viewed these accounting questions
-
12) The spread of the flu virus through a certain population is modeled by y 1000 -0.7t where y is the 1+990e total number infected after t days. In how many days will 350 people be infected with the...
-
A bakery with a December 31 st year end purchased new equipment on October 31 st 2000 for $10,000. This was their first equipment purchase. Required: What are the tax consequences if the equipment is...
-
Mrs. B, recently widowed and in her mid to late 40s, is a senior executive working for a Singapore-based multi-national corporation with SGD 10 billion in global sales. She has a son aged 20 and a...
-
How do the Uniform Trade Secrets Act (UTSA) and the Economic Espionage Act of 1996 differ? Why don't these acts always provide a sufficient remedy for the theft of trade secrets?
-
Browne and Red, both C corporations, formed the BR Partnership on January 1, 2011. Neither Browne nor Red is a personal service corporation, and BR is not a tax shelter. BR's gross receipts were $4.6...
-
a. Convert the following temperatures into the kelvin temperature: i. 245 C ii. 45 C b. How many pascals are there in 15 kPa?
-
Party Time Amusements Company owns movie theaters. Party Time engaged in the following business transactions in 2012: Party Time Amusements uses the following accounts: Cash, Supplies, Building,...
-
Cybernetronics Inc. (Cyber) is a Canadian-owned public company which designs and manufactures communications and control systems. The company's year end is May 31. It is now June 2018. You, CPA, are...
-
Check my work Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2). The distribution of each service department's efforts (in percentages) to...
-
Not all potentially good employees have a bubbly, goofy personality of the type that Zappos likes to attract. Would it be wise for the company to reject a candidate solely on the basis of a shy,...
-
Required: Which three of the Seven Signs of Ethical Collapse are most likely to create challenges (like material misstatements) to the auditors ability to certify the financial statements and...
-
a. Briefly describe how the following data types are represented in Java using a combinations of bits.(As an example, a double precision floating point number is represented using sixty four bits,...
-
This self-assessment consists of 12 questions. For each question, type your brief answer in the space provided. After answering all 12 questions, compare what you wrote with the correct answer along...
-
A sedan weighing 2,000 kg is traveling at 120 kph over a series of sinusoidal bumps having a roughness height of 6 cm and spacing of 3 m. The spring at each wheel has a stiffness of 100,000 N/m. The...
-
wlamart argues that it provides valuable jobs to small communities and should be allowed to grow. critics argue that these jobs are often low paying, with few benefits. what is your position? is a...
-
Joint ventures have significant advantages as well several disadvantages versus a wholly owned subsidiary with regard to investment abroad. Define the two types of investment opportunities and...
-
OG Corporation's balance sheet and income statement is listed below. Balance Sheet This Last Year Year 1. 2. 3. Cash. Accounts receivable Inventories Plant & equipment 4. Other data: Less accumulated...
-
Differentiate the following terms/concepts: a. Personality types and money attitudes b. Planners and avoiders c. Moderating and adapting to biases d. "Perfectible judges" and "incorrigible judges"
-
A $25 000, 10% bond redeemable at par on December 1, 2028, is purchased on September 25, 2017, to yield 7.6% compounded semi-annually. Bond interest is payable semi-annually. (a) What is the cash...
-
A home theatre system listed at $1136 has a net price of $760. What is the rate of discount?
-
What is the amount to which $1550 will grow from June 10, 2018, to December 15, 2018, at 6.5%?
-
Using the online code for the example in this chapter as a starting point and the solution from a previous exercise. 1. Implement (or modify your previous) Student: :DropCourse (). When a student...
-
Using the Adapter examples found in this chapter, create a program as follows: 1. Implement a Citizen Data Base that stores various types of Humanoid instances (Orkan, Romulan, Earthling, and perhaps...
-
Using the solution from a previous exercise, augment your code as follows: 1. Implement the Factory Method pattern to create various shapes. You will have already created an abstract base class of...
Study smarter with the SolutionInn App