c) None of the above 1.9 If R440 is paid for thres month-ends at \( 12 \% \) p.at compounded montily, determine the final amount after three months. a) R618.17 b) R629.54 c) R1.383. 24 d) Nene of the answers 110 In a grocery basket there are ihree items as ghown below along with thein prices. \( \square \) \begin{tabular}{|l|l|l|l|} \hline Hem & 2021 price & 2022 price & \begin{tabular}{l} 2022 \\ quantity \end{tabular} \\ \hline Orange & R10 & R12 & 4 \\ \hline Apple & R8 & R9 & 5 \\ \hline Benana & R11 & R13 & 2 \\ \hline \end{tabular} Use the intormation mbove to calcifate the Laspyyres price index if Porsible a) 1172483 b) \( 116.667 \% \) c) \( 100 \% \) d) None of the above
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- Principal amount (P) = R440 - Annual interest rate (r) = 12% - Compounding period = monthly - Time (t) = 3 months Show more…
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Questions 19 – 20 refer to the problem below. The price (in R) and quantity of a basket of three items for the years 2021 and 2023 are given in the table below. 2021 2021 2023 2023 ITEM PRICE (R) QUANTITY PRICE (R) QUANTITY SWEETENER (kg) 140 100 170 150 CRACKERS (BOX) 40 60 50 80 TEABAGS (BOX) 65 90 75 110 QUESTION 19 (4 Marks) Using 2021 as the base year, the Laspeyre’s price index for this basket of items is: A. 120.22% B. 119.78% C. 122.87% D. 141.12% QUESTION 20 (4 Marks) Using 2021 as the base year, the Paasche’s quantity index for this basket of items is: A. 143.16% B. 139.65% C. 141.12% D. 145.80% Consider the table which shows the quarterly sales of a company for 2021 and 2022. YEAR QUARTER SALES (R 000) 2021 1 800 2 740 3 900 4 860 2022 1 950 2 770 3 990 4 1020 The first centred average is: A. 878.75 B. 825.00 C. 843.75 D. 770.00 QUESTION 22 (4 Marks) How long will it take an amount of money to triple in value if the interest rate offered is 12% per annum compounded yearly? A. 10.4 years B. 9.7 years C. 8.6 years D. 9.1 years QUESTION 23 (4 Marks) R 4500 is invested for seven years. Three years after the initial investment, another R 2500 is deposited into the account. The interest rate for the first three years is 15% per annum compounded quarterly and for the next four years it changes to 12% per annum compounded semi-annually. A. R 15 567.03 B. R 14 983.42 C. R 16 245.91 D. R 15 140.83 Questions 24 and 25 refer to the problem below. A businessman is contemplating purchasing a company for R 950 000. The company is expected to operate for 3 years, and the following profits are expected: YEAR PROFIT (R) DISCOUNT FACTOR PRESENT VALUE (R) 1 450 000 0.909 409 050 2 740 000 J 611 240 3 890 000 0.751 668 390 S D A company of this type is expected to return a yearly profit of 10%. QUESTION 24 (4 Marks) The missing values J and D, respectively, are: A. 0.826 and 1 688 680 B. 0.859 and 1 688 680 C. 0.826 and 1 563 290 D. 0.793 and 1 688 680 QUESTION 25 (4 Marks) What should be the final decision? A. Do not buy the company since there is a nett loss of R 738 680 B. Buy the company since there is a nett profit of R 648 680 C. Buy the company since there is a nett profit of R 738 680 D. Do not buy the company since there is a nett loss of R 648 680
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