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
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)
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