Exam (elaborations)
DSC1630 EXAM PACK 2025 [DETAILED QUESTIONS AND ANSWERS]
- Institution
- University Of South Africa
DSC1630 EXAM PACK 2025 [DETAILED QUESTIONS AND ANSWERS]
[Show more]
Content preview
lOMoAR cPSD| 49511909Downloaded by Vincent master
, lOMoAR cPSD| 49511909
DSC1630/SOL03/1/2020
Question 1
A sum of R1000 is due in five months’ time from now, at a simple interest rate of 12% per annum. The
present value of the sum is
[1] R952,38.
[2] R567,43.
[3] R1050,00. [4] R625,00.
Question answered using the “how to approach a question” style.
Step 1: Read through the question and identify the type of problem:
Identification term
A sum of R1000 is due in five months’ time from now, at a simple interest. rate of 12% per annum. The
present value of the sum is Step 2: Draw a time line:
The situation can be represented by a time line as:
=?
r=12% R1000
now 5months
Step 3: Write down the formula:
This is a simple interest rate calculation as the words simple interest are found in the question. The
formulas that you can use for simple interest calculations are
S = P(1 + rt) and I = Prt.
Step 4: Identify the given values:
Given is the value due in five months’ time from now, i.e. the future value (S) of R1000 and the simple
interest rate (r) namely, 12%. We are asked to determine the present value of the amount now. We need
to determine a present value of the R1000 or P now. Given are
S = 1000 r =
12% P = ?
As we want to determine the value now we need to move the R1000 back in time to now.
t = 5/12
R1 000
P=?
now 5months
2
Downloaded by Vincent master ()
, lOMoAR cPSD| 49511909
DSC1630/SOL03/1/2020
The time period t must always be expressed as years. Thus we need to change the 5 months to a fraction
of a year by dividing the 5 months by the number of months in a year, namely 12. Thus
.
Step 5: Substitute the values into the formula and calculate the unknown value using your calculator:
Step 6: Write down the answer:
R952,38 will be paid nine months from now.
EL-738 and EL-738F HP10BII and HP10BII+
2ndF CA C ALL
Use normal keys Use normal keys Enter
Enter as as
1000 ÷ (1 + 0.12 × 5 ÷ 12) 1000 ÷ to (1+
= 952.38 (0. 12 × 5 ÷
two decimals is displayed. 12 ) )=
952.38 to two decimals is displayed.
[Option 1]
Question 2
Alton invests R8350 in an account that pays simple interest. After six years, the amount that he receives
back (accumulated sum) is R12859. The simple interest rate on the investment, rounded to two decimal
places, is
[1] 0,75% per year.
[2] 45,09% per year.
[3] 1,08% per year.
[4] 9,00% per year.
Question answered using the “how to approach a question” style.
Step 1: Read through the question and identify the type of problem:
Identification term
Alton invests R8350 in an account that pays simple interest. After six years, the amount that he receives
back (accumulated sum) is R12859. The simple interest rate on the investment, rounded to two decimal
places, is
3
Downloaded by Vincent master
, lOMoAR cPSD| 49511909
DSC1630/SOL03/1/2020
Step 2: Draw a time line:
835 R12 859
0
=
?
Now 6years
Step 3: Write down the formula:
This is a simple interest rate calculation as the term simple interest is found in the question. The formulas
that you can use for simple interest calculations are
S = P(1 + rt) and I = Prt.
Step 4: Identify the given values:
Now given are the present value (P) of R8350, the future value (S) of R12859 and the time t of six years.
We need to determine the simple interest rate (r).
Step 5: Substitute the values into the formula and calculate the unknown value algebraically:
You could also have used the formule I = Prt.
The interest received is calculated as
I = S−P
= 12859 − 8350 =
4509.
The interest received is R4509.
To calculate the simple interest rate we use the formula for simple interest and solve for r. From
I = Prt
we have that I Prt
=
P×t P×t
I
P×t = r
4
Downloaded by Vincent master ()
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 Academy360. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R51,10. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
69605 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 15 years now