R150 000 is invested at a compound interest rate that is compounded quarterly. After 6 years the investment matures. R6 000 is subtracted to the investment and the money is reinvested for a period of 7 years at 7.5% p.a.(cc). At the end of the investment period the investment is worth R 397 706.79 At what initial interest rate was the money invested? Answer the question by completing the answer boxes below. N for the first investment period: 72 Initial interest rate for the first investment: % Present Value for second investment (round your answer to 2 decimal places): R
R150 000 is invested at a compound interest rate that is compounded quarterly. After 6 years the investment matures. R6 000 is subtracted to the investment and the money is reinvested for a period of 7 years at 7.5% p.a.(cc). At the end of the investment period the investment is worth R 397 706.79 At what initial interest rate was the money invested? Answer the question by completing the answer boxes below. N for the first investment period: 72 Initial interest rate for the first investment: % Present Value for second investment (round your answer to 2 decimal places): R
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 3MC: Electro Corporation bought a new machine and agreed to pay for it in equal annual installments of...
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How to find the initial interest rate? for first investment?
How to find value of second investemnt?
Transcribed Image Text:RI50 000 is invested at a compound interest rate that is compounded quarterly. After 6 years the investment matures. R6 000 is subtracted to the investment
and the money is reinvested for a period of 7 years at 7.5% p.a.(cc). At the end of the investment period the investment is worth R 397 706.79 At what initial
interest rate was the money invested?
Answer the question by completing the answer boxes below.
N for the first investment period: 72
Initial interest rate for the first investment: %
Present Value for second investment (round your answer to 2 decimal places): R
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