QUESTION 1 THE LAWS OF BUSINESS PART A Thandi lives in a country with an inflation rate of 13 %. She wishes to invest a
Posted: Wed May 04, 2022 6:33 am
- Question 1 The Laws Of Business Part A Thandi Lives In A Country With An Inflation Rate Of 13 She Wishes To Invest A 1 (84.28 KiB) Viewed 33 times
QUESTION 1 THE LAWS OF BUSINESS PART A Thandi lives in a country with an inflation rate of 13 %. She wishes to invest a lump sum of R 120 000 with Bella Bank. The bank is offering a savings plan, for 15 years, paying interest of 10 % per annum. Required: 1. Calculate the future value of Thandi's investment in 15 years' time. 2. Calculate the real value of this future value (in today's terms) at the given inflation rate. 3. Comparing your answers above, explain whether Thandi is making the right decision by investing with Bella Bank. 4. Name and discuss four reasons why excessive inflation is a problem in an economy. PART B With the increased awareness of environmental concerns, there has been a shift in reducing the usage of single use plastic straws towards reusable metal straws. Illustrate the effect of the "green movement" on the price and demand for these metal straws. Write explanatory notes to substantiate your answer. PART C 1. Governments' play an important role in most economies. List five roles where the government interacts with other economic decision makers. 2. List and define the five ways in which contracts can be breached.