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Topic Review (Newest First)

  • 05-30-2013, 12:43 PM
    Carlisle

    Assignment Help! Net Present Value?

    Can anyone calculate the following and explain how it is done?

    Q: A lump sum of R800 000 is invested into a three year fixed deposit at an interest rate of 12%, annually compounded. The inflation rate is expected to be 12.5% per annum for the first two years of the investment and is expected to increase to 13% per annum for the remainder of the investment period.

    Calculate the future value for this investment
    Calculate the present value of this investment after discounting the expected inflation rate


    Your help will be much appreciated!

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