$[$Subtotal $=35$ marks$]$

destion $2$ Time Value for Money

$1$ NM decides to invest his R$300000$ over $10$ years at a nominal interest rate of $12\%$

mpounded biannually. How much will it be worth at the end of the $10$ th year?

$(5)$

$2$ If an interest rate of $7\mathrm{.}5\%$ per year is applied, estimate how long will it take your vestment of R$45000$ to grow to R$110000?$

$(5)$

$3.$ Consider making an R$10000$ deposit today, followed by R $15000$ and R$20000$ deposits ree and five years later. Assume that the annual compound interest rate is $8\%.$

$3\mathrm{.}1$ Illustrate with the aid of a fully labeled cash flow diagram the cash flow through year

$3\mathrm{.}2$ Calculate the future value at the end of year $10.$

$(5)$