~ DS
t
C1B 3 D
t t t
+-------+------
ASSIGNMENT 1 SEMESTER 1
~ ll:I: Q~ES r HJNrS Fltn:11:.~-,N~~ER~D-
DUE: 13 MARdH 2ok~
DISCLAIMER:
THI$ DOCUMEN IS FDR REFERENCE AND GUID"N E PURP SES
ONLY. I DD NOT TAKE RESPDNSIBIUITY-iFDR AN~ PLAGIARI M. fMISUS • DR
ACADEMIC MISCONDUCT RESULTING FROM THEIR usE.f1r I YOUR ___
RESPDNSIBILIT T ENSU E ORIGINALITY lN CDMPUIAN E WITH
RELEVA T GUIDELINES DR STA D RDS. ~
, PLEASE USE THIS DOCUMENT AS A GUIDE TO ANSWER YOUR ASSIGNMENT
1. Hassim deposits R900 into a savings account paying 6,5% interest per year, compounded
quarterly. After three and a half years he withdraws R1 000 from the account and deposits it
into a second account paying 11% simple interest per year. How much is the total amount
accrued in the first account two years after withdrawing the R1 000? The correct answer,
rounded to the nearest rand, is.
A) Interest for the first 3.5 years:
Use the compound interest formula:
Where:
P = 900 (the initial principal),
jm = 0.065 (annual interest rate),
m = 4 (compounded quarterly),
t = 3.5 years (time for which the money is compounded).
Substituting into the formula:
After 3.5 years, the account balance is R1127.47.
B) After withdrawal of R1,000:
He withdraws R1,000, leaving R127.47 in the account.
, C) Accrual after 2 more years:
The remaining balance of R127.47 continues to accrue interest at the same rate. Now calculate the
interest for 2 years.
Using the compound interest formula again:
The total amount accrued in the first account after 2 more years is approximately R145.83, rounded
to R146.