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FIN3701 Assignment 2 [Semester 2] 2024 - Due 16 September 2024
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FIN3701 Assignment 2 [Semester 2] 2024 - Due 16 September 2024 Mashinini
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FIN3701ASSIGNMENT 2 (SEMESTER 2)
DUE DATE: 16 September 2024
Written Assignment Submission Guidelines:
Please ensure that your assignment is submitted electronically through the myUnisa platform no
later than …September 2024. Kindly note that fax or email submissions will not be accepted.
NB: Assignment submitted to the lecturer(s) through email will not be considered.
QUESTION 1
1.1 Calculate the annual payment. (2 marks)
ANSWER:
To calculate the annual payment (i.e., the loan repayment), use the formula for the annuity
payment:
𝑷×𝒓
Annual Payment = 𝟏−(𝟏+𝒓)−𝒏
Where:
• P = R400,000 (Principal)
• r = 10% or 0.10 (annual interest rate)
• n = 5 years (loan term)
So,
𝟒𝟎𝟎,𝟎𝟎𝟎 𝒙 𝟎.𝟏𝟎
Annual Payment = = R105,018.93
𝟏−(𝟏+𝟎.𝟏𝟎)−𝟓
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