Question: Please answer csrefully. Thanks in advance QUESTION 1 (Time value of money and project selection) [20] 1.1 An amount of R1 142 is invested for
Please answer csrefully. Thanks in advance

QUESTION 1 (Time value of money and project selection) [20] 1.1 An amount of R1 142 is invested for 25 years at a rate of 6% per annum. What is the future value of this investment at the end of 25 years? (2) 1.2 An investor is considering purchasing land which is estimated to be worth R1 500 000 in 5 years. Land in the area has increased in value at a rate of 8% during the past few years. How much should the investor pay for this land today, assuming that the land will continue to increase in value at 8% per annum? (2) 1.3 Suppose you make 12 equal deposits of R4 000 each into a bank account every year. The first deposit will be made one year from today. Calculate how much money can be withdrawn from this bank account immediately after the 12th deposit was made if the interest received is 7% per annum. (3)
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