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Exam (elaborations) QMI1500 ASSIGNMENTS 2
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QMI1500nn
QMI1500
Department of Decision Sciences
Elementary Quantitative Methods
Solutions for assignment questions, Semester 1, 2022
Assignment: 03
Due date: 21 April 2022
Unique number: S1: 746491
,Assignment 03 Due date: 21 April 2022 Unique number: 746491
Question Correct Question Correct
alternative alternative
1. 1 11. 4
2. 1 12. 1
3. 4 13. 4
4. 4 14. 3
5. 2 15. 3
6. 3 16. 4
7. 3 17. 4
8. 2 18. 2
9. 3 19. 3
10. 1 20. 3
2
, QMI1500
Question 1
This question deals with the future value of an annuity. Aziz is planning to attend college when she graduates
from high school four years from now. The first deposit will be made six months from now. The amount of
money Aziz will need in the account to pay for her college expenses should be determined.
The deposits can be represented by the following time line:
9 120 9 120 9 120 9 120 9 120 9 120 9 120 9 120
0 1 2 3 4 Years = 4 years
1 2 3 4 5 6 7 8 Semesters
@ 8.5% per annum, semi-annually
S=?
n
(1 + i) − 1
Calculate the future value of the deposits by using the formula S = R .
i
Here R = 3 570.00 + 5 550.00 = 9 120.00
0.085
i=
2
n = 4 × 2 = 8 semesters
S =?
Substituting the values into the formula gives ⎡ ⎤
8
0.085
⎢ 1+ 2 − 1⎥
⎢ ⎥
S = 9 120.00 × ⎢ ⎥
⎣ 0.085 ⎦
2
= 84 786.00.
The amount that he will have in his account at the end of four years is R84 786.00.
Use the SHARP EL-738 calculator as follows:
Key in 2ndF CA
2ndF P/Y ENT
2
ON/C
9 120 ± P M T
8.5 I/Y
4 2ndF × P/Y N (8 semesters)
COMP F V , then 84 786.00 will be displayed on the screen.
If you use the formula to calculate the future value, press the following keys on the SHARP EL-738:
Key in 2ndF CA
Key in 9 120 × ( ( 1 + 0.085 ÷ 2 ) 2ndF y x 8 − 1 ) ÷
Key in ( 0.085 ÷ 2 ) =
then 84 786.00 will be displayed.
Correct option: [1]
3
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