DSC1630
Assignment 1
DUE 8
August 2024
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Introduction to Financial Mathematics
DSC1630 Assignment 1 (COMPLETE ANSWERS) Semester 2 2024
(234521)- DUE 8 August 2024 ; 100% TRUSTED Complete, trusted solutions
and explanations
Question 1 Not yet answered Marked out of 1.00 QUIZ You have invested R1
500 in an account earning 6,57% simple interest. The balance in the account
16 months later is a. R1 636,94. b. R2 814,00. c. R1 631,40. d. R1 644,02.
Clear my choice DSC1630-24-S2 Welcome Message Assessment 1
To find the balance in the account after 16 months with simple interest, we can use the formula:
A=P×(1+rt)A = P \times (1 + rt)A=P×(1+rt)
Where:
AAA is the amount (final balance)
PPP is the principal amount (initial investment)
rrr is the annual interest rate (as a decimal)
ttt is the time in years
Question 2 Not yet answered Marked out of 1.00 QUIZ If money is worth 12%
per annum compounded monthly, how long will it take the principal P
tobecome four times the original value? a. 11,61 years b. 7,27 years c. 69,66
years d. 139,32 years Clear my choice DSC1630-24-S2 Welcome Message
Assessment 1
To find how long it will take for an investment to become four times its original value with
compound interest, we use the compound interest formula:
A=P(1+rn)ntA = P(1 + \frac{r}{n})^{nt}A=P(1+nr)nt
Where:
AAA is the final amount
PPP is the principal (initial amount)
rrr is the annual interest rate (as a decimal)
nnn is the number of times the interest is compounded per year
ttt is the number of years
Given:
A=4PA = 4PA=4P (because the amount becomes four times the principal)
r=12%=0.12r = 12\% = 0.12r=12%=0.12
n=12n = 12n=12 (compounded monthly)
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