DSC1630
Assignment 1
DUE 8
August 2024
[Type the abstract of the document here. The abstract is typically a short summary of the
contents of the document. Type the abstract of the document here. The abstract is typically a
short summary of the contents of the document.]
[Pick the date]
,
Book
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
Understanding the problem:
Principal amount (P) = R1 500
Interest rate (R) = 6.57% per year
Time (T) = 16 months
Formula for Simple Interest:
Simple Interest (SI) = (P * R * T) / 100
Calculations:
1. Convert months to years: 16 months = 16/12 = 4/3 years
2. Calculate Simple Interest: SI = (1500 * 6.57 * 4/3) / 100 = R131.40
3. Calculate the balance: Balance = Principal + Simple Interest = 1500 + 131.40 = R1631.40
Answer:
The balance in the account 16 months later is R1 631.40.
Therefore, the correct option is c. R1 631.40.
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
Understanding the problem:
We need to find the time it takes for a principal (P) to quadruple its value.
Interest rate (r) = 12% per annum compounded monthly.
Formula for compound interest:
A = P(1 + r/n)^(nt)
o A is the future value
o P is the principal
o r is the annual interest rate (as a decimal)
o n is the number of times interest is compounded per year
o t is the number of years
1. www.numerade.com
www.numerade.com
2. www.numerade.com
www.numerade.com
Given:
A = 4P (since we want the principal to quadruple)
r = 12% = 0.12
n = 12 (compounded monthly)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ivymwendwa47820. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.50. You're not tied to anything after your purchase.
