Question 1 1.1 Indicate whether the statements below are TRUE or FALSE. For each false statement, explain why it is false, and for each true statement, explain why it is true. 1.1.1 Investment involves buying shares on the stock market for making quick profits. 1.1.2 The current inflation rate in South Africa is 15%. 1.1.3 From the formula A = P(1 + in), we deduce that P (1+in) A 1.1.4 A transaction in which someone pays for an article with another article can be regarded as foreign exchange. 1.1.5 A car that is purchased for R250 000 and depreciates at a rate of 10% per annum will be worth R150 000 after four years if the depreciation is calculated using the straight line method. 1.1.6 The owners of a guesthouse need to raise some cash fast to pay the debt accrued by the guesthouse. The guesthouse can be said to have embarked in on cash flow. (12)