DSC1630 ASSIGNMENT 2 SEMESTER 1 - 2022 LATEST UPDATE
Question 1
Shona decides that he would like to buy his lovely wife, Connie, a new car when she turns
30 in six years’ time. He deposits R6 000 each month into an account earning 8,94% interest
per year, compounded monthly.
The amount that...
Shona decides that he would like to buy his lovely wife, Connie, a new car when she turns
30 in six years’ time. He deposits R6 000 each month into an account earning 8,94% interest
per year, compounded monthly.
The amount that Shona (rounded to the nearest rand) will have available six years from now
is
[1] R568 948.
[2] R573 187.
[3] R333 412.
[4] R335 896.
[5] R432 000.
In this problem we have equal payments in equal time periods (monthly), plus the interest
rate is specified as compounded, thus we are working with annuities. We need to determine
the future value of an ordinary annuity.
Shona will have R568 948 available
2
, Question 2
An amount of money accumulates to R45 946 at a continuous compounding rate of 8% per
year, after 57 months. The original amount is
[1] R31 460,34.
[2] R33 294,20.
[3] R36 756,80.
[4] R31 420,70.
[5] R28 486,52.
3
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 EFT, 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 this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TestGen. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R232,77. You're not tied to anything after your purchase.