100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
DSC 1630 Assignment 3 Semester 1 2022 Q&A $5.50   Add to cart

Exam (elaborations)

DSC 1630 Assignment 3 Semester 1 2022 Q&A

 0 view  0 purchase
  • Course
  • Institution

DSC 1630 Assignment 3 Semester12022 Questions and Answers DSC1630 Introductory Financial Mathematics Department of Decision Sciences Assignment 03 for Semester 01 2022 Unique assignment number: Due Date: 24 March 2022 Question 1 Mabel borrowed an amount of money f...

[Show more]

Preview 3 out of 24  pages

  • July 13, 2022
  • 24
  • 2021/2022
  • Exam (elaborations)
  • Questions & answers
avatar-seller
DSC 1630
Assignment 3
Semester12022
Questions and
Answers




Downloadedby:tebatsokgar
i|
tebatso.kgari@gmail.com

, Stuvia.com -
Thestudy-




DSC1630

Introductory Financial Mathematics

Department of Decision Sciences

Assignment 03 for Semester 01 2022

Unique assignment number: 179653
Due Date: 24 March 2022




Question 1

Mabel borrowed an amount of money from her father. The loan will be paid back by means of
payments of R25 000 each every second month for six years. An interest rate of 7,5% per year,
compounded every two months, will be applicable. The amount of the loan is

[1] R238 067,35.
[2] R721 181,68.
[3] R900 000,00.
[4] R1 127 887,64.

Answer:

In this problem we have equal payments in equal time periods plus the interest rate that is
specified is compounded. Thus, we are working with annuities. As the payments are not specified
as being paid at the beginning of the period, we assume them as being paid at the end of each
time period.




Downloadedby:tebatsokgar
i|
tebatso.kgari@gmail.com

, Stuvia.com -
Thestudy-




We therefore have to calculate the present value of an ordinary annuity or . Now
given is the payments of R25 000, the interest rate of 7,5% compounded every two months,
thus
𝑚 = 6, and the time period is 6 years. The time line is




The present value of the loan is R721 181,68.

Calculator steps:




Downloadedby:tebatsokgar
i|
tebatso.kgari@gmail.com

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

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

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 NursesHub. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $5.50. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

77254 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$5.50
  • (0)
  Add to cart