Sarah Is Thinking About Purchasing an Investment from HiBond Investing

question 80

Multiple Choice

Sarah is thinking about purchasing an investment from HiBond Investing.If she buys the investment, Sarah will receive R100 every three months for five years.The first R100 payment will be made as soon as she purchases the investment.If Sarah's required rate of return is 16 percent, to the nearest rand, how much should she be willing to pay for this investment?

• A) R1,359
• B) R1,413
• C) R1,112
• D) R1,519
• E) R1,310

Identify examples of investments in various contexts.

Explain the promises made to a bond buyer and the main function of the financial system.

Evaluate the impact of fiscal policies on savings and long-run living standards.

Distinguish between different types of risks associated with bonds.

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Definitions:

Community Feedback

Input or responses from members of a community, often used by organizations or projects to assess impacts, improve services, or inform decision-making.

Financial Bottom Line

The final financial result of a business after all expenses, taxes, and dividends have been deducted from total revenue.

Business Administration

The management and operation of a business, including the planning, organization, direction, and control of resources to achieve organizational objectives.

Building Strength

Refers to the process of developing or enhancing physical, mental, or structural resilience and capability.