we 7 Four friends, Tim, Thabo, Tracy and Thandi, each received a lump sum of R12...

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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.

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Calculating End Value of Investments and Ranking Returns Tim Initial investmentR12 000 Depreciation ... View the full answer