8. Assuming you require a 15% rate of return, what will the net present valuebe?InitialInvestment346YearCash Flow9 7001 53016004 1505 5502 080before taxCash Flow7 0001 1001 2003 0004 0001 500after taxA) R-358.57B) R-223.68C) R-130.78D) R-228.059. A loan of R1.75 million was made to a farmer, bonded against fixed property atan interest rate of 7.25% per year compounded quarterly. The farmer agreedto pay off the loan in equal quarterly instalments over a period of 15 years. Whatare the equal quarterly payments the farmer needs to make?A) R29 167B) R48 085C) R134 292D) None of the above10.A loan of R1.75 million was made to a farmer, bonded against fixed property atan interest rate of 7.25% per year compounded quarterly. The farmer agreedto pay off the loan in equal quarterly instalments over a period of 15 years. Whatis the remaining capital the farmer still needs to pay at the end of the fourthyear?A) R1 682 735B) R1 610 459C) R1 449 353D) None of the above11.A loan of R1.75 million was made to a farmer, bonded against fixed property atan interest rate of 7.25% per year compounded quarterly. The farmer agreedto pay off the loan in equal quarterly instalments over a period of 15 years. Whatis the interest portion of the 12th instalment?A) R27 782B) R28 143C) R114 678D) None of the above12. You wish to retire in 35 years' time when you get to 65 years old. You will requirea monthly pension of R65 000 per month at the time. The monthly pension willbe paid over a period of 25 years after retirement. You will contribute to aretirement fund which is expected to eam a return of 1.25% per month (15%per year) before and after retirement, interest compounded monthly. What isthe amount that needs to be accumulated in 35 years' time in order to generatethe required monthly pension?A) R5 074 832B) R5 647 060C) R5 696 793D) None of the above13. You wish to retire in 35 years' time when you get to 65 years old. You will requirea monthly pension of R65 000 per month at the time. The monthly pension willbe paid over a period of 25 years after retirement. You will contribute to aretirement fund which is expected to eam a return of 1.25% per month (15%per year) before and after retirement, interest compounded monthly. Assumeyou need to have accumulated an amount of R5 000 000 in 35 years' time inorder to generate the required monthly pension. What should your monthlyinstalments be, if you assume you make equal instalments over the next 35years?A) R340.66B) R114 755.57C) R140 343.18D) None of the above

Since there are multiple questions are posted at a time, the answer for first is only provided.…

8. Assuming you require a 15% rate of return, what will the net present value be? Initial Investment Cash Flow 9 700 1 2 3. 4 6. Year 1 530 1 600 4 150 5 550 2 080 before tax Cash Flow 7 000 after tax 1 100 1 200 3 000 4 000 1 500 A) R-358.57 B) R-223.68 C) R-130.78 D) R-228.05 9. A loan of R1.75 million was made to a farmer, bonded against fixed property at an interest rate of 7.25% per year compounded quarterly. The farmer agreed to pay off the loan in equal quarterly instalments over a period of 15 years. What are the equal quarterly payments the farmer needs to make? A) R29 167 B) R48 085 C) R134 292 D) None of the above 10.A loan of R1.75 million was made to a farmer, bonded against fixed property at

8. Assuming you require a 15% rate of return, what will the net present value be? Initial Investment Cash Flow 9 700 1 2 3. 4 6. Year 1 530 1 600 4 150 5 550 2 080 before tax Cash Flow 7 000 after tax 1 100 1 200 3 000 4 000 1 500 A) R-358.57 B) R-223.68 C) R-130.78 D) R-228.05 9. A loan of R1.75 million was made to a farmer, bonded against fixed property at an interest rate of 7.25% per year compounded quarterly. The farmer agreed to pay off the loan in equal quarterly instalments over a period of 15 years. What are the equal quarterly payments the farmer needs to make? A) R29 167 B) R48 085 C) R134 292 D) None of the above 10.A loan of R1.75 million was made to a farmer, bonded against fixed property at

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter13: Tax Credits And Payment Procedures

Section: Chapter Questions

Problem 25P: LO.2 Oak Corporation has the following general business credit carryovers. If the general business...

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