DSC1630 Assignment 2 Semester 1 2026 (Answer Guide) - DUE 25 March 2026
VERIFIED AND CERTIFIED ANSWERS. WRITTEN IN REQUIRED FORMAT AND WITHIN GIVEN
GUIDELINES. IT IS GOOD TO USE AS A GUIDE AND FOR REFERENCE, NEVER PLAGARIZE.
Thank you and success in your academics.
UNISA, 2026
QUESTION 1
Given
Loan is repaid by R250 every 6 months
Period = 10 years
Interest rate = 5% per year, compounded semi-annually
Step 1: Identify the type of problem
Equal payments
Equal time intervals
Compounded interest
👉 This is an ordinary annuity (payments at the end of each period)
Step 2: Define variables
Payment, R = 250
Nominal interest rate, j = 5%
Compounding periods per year, m=2
Periodic interest rate:
, 0.05 = 0.025
i=
2
Number of payments:
n = 10 × 2 = 20
Step 3: Formula (Present Value of an Ordinary Annuity)
1 − (1 + i)−n
PV = R ( )
i
Step 4: Substitute values
1 − (1.025)−20
PV = 250( )
0.025
(1.025)−20 ≈ 0.61027
1 − 0.61027
PV = 250 ( )
0.025
PV = 250 × 15.5892
Final Answer
PV ≈ R3 897.30
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, QUESTION 2
Given
Nominal rate = 19.40% per year
Compounded monthly
Find equivalent continuous compounding rate
VERIFIED AND CERTIFIED ANSWERS. WRITTEN IN REQUIRED FORMAT AND WITHIN GIVEN
GUIDELINES. IT IS GOOD TO USE AS A GUIDE AND FOR REFERENCE, NEVER PLAGARIZE.
Thank you and success in your academics.
UNISA, 2026
QUESTION 1
Given
Loan is repaid by R250 every 6 months
Period = 10 years
Interest rate = 5% per year, compounded semi-annually
Step 1: Identify the type of problem
Equal payments
Equal time intervals
Compounded interest
👉 This is an ordinary annuity (payments at the end of each period)
Step 2: Define variables
Payment, R = 250
Nominal interest rate, j = 5%
Compounding periods per year, m=2
Periodic interest rate:
, 0.05 = 0.025
i=
2
Number of payments:
n = 10 × 2 = 20
Step 3: Formula (Present Value of an Ordinary Annuity)
1 − (1 + i)−n
PV = R ( )
i
Step 4: Substitute values
1 − (1.025)−20
PV = 250( )
0.025
(1.025)−20 ≈ 0.61027
1 − 0.61027
PV = 250 ( )
0.025
PV = 250 × 15.5892
Final Answer
PV ≈ R3 897.30
In case you need assistance with your assignments/ exam please email below,
your work will be handled in a professional manner with distinction and quality
work guaranteed
If you need this document in editable form please email below, ill share for
free. Thank you and all the best in your academics.
https://whatsapp.com/channel/0029Vb3iSmTIt5rqFVDPSB1X
https://t.me/unisagrouplinks2025
, QUESTION 2
Given
Nominal rate = 19.40% per year
Compounded monthly
Find equivalent continuous compounding rate
