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ASSIGNMENT 5
SECOND SEMSTER 2022
BY: MTHOMBENI : 0767297208
1
, QUESTION 1
Hunter has just realised that his silver wedding anniversary is 20 months away. He wants to buy his
lovely devoted wife, a diamond ring for the occasion. He immediately starts to make monthly deposits
of R1 500 into an amount earning 9,30% interest per year, compounded monthly. After 11 deposits,
he increases his monthly payments to R2 500. The amount of money that Hunter will have available
just before his anniversary to buy the diamond ring is
R41 921, 42.
QUESTION 2
If you earn a nominal interest rate of 16,5% per annum, compounded at the end of every second
month, on a savings account, then the effective interest rate is
17,68%.
QUESTION 3
To pay off a loan of R7 000 due now and a loan of R2 000 due in 14 months' time, Priya agrees to
make three payments in two, five and ten months' time respectively. The second payment is to be
double the first and the third payment is to be triple the first. What is the approximate payment at
month five if interest is accumulated at 16% per year, compounded monthly?
R3 164,86
QUESTION 4
A teacher has collected the following sample data of the number of children absent from the grade 7
class per day, in the past week:
3 5 12 3 2
The variance of the data set is
16.5
QUESTION 5
Marwala invests an amount of money in an account earning 13,88% interest per year, compounded
weekly. After five years, this amount has accumulated to R50 000. The amount that was invested
initially is
R25 001,79.
2
ASSIGNMENT 5
SECOND SEMSTER 2022
BY: MTHOMBENI : 0767297208
1
, QUESTION 1
Hunter has just realised that his silver wedding anniversary is 20 months away. He wants to buy his
lovely devoted wife, a diamond ring for the occasion. He immediately starts to make monthly deposits
of R1 500 into an amount earning 9,30% interest per year, compounded monthly. After 11 deposits,
he increases his monthly payments to R2 500. The amount of money that Hunter will have available
just before his anniversary to buy the diamond ring is
R41 921, 42.
QUESTION 2
If you earn a nominal interest rate of 16,5% per annum, compounded at the end of every second
month, on a savings account, then the effective interest rate is
17,68%.
QUESTION 3
To pay off a loan of R7 000 due now and a loan of R2 000 due in 14 months' time, Priya agrees to
make three payments in two, five and ten months' time respectively. The second payment is to be
double the first and the third payment is to be triple the first. What is the approximate payment at
month five if interest is accumulated at 16% per year, compounded monthly?
R3 164,86
QUESTION 4
A teacher has collected the following sample data of the number of children absent from the grade 7
class per day, in the past week:
3 5 12 3 2
The variance of the data set is
16.5
QUESTION 5
Marwala invests an amount of money in an account earning 13,88% interest per year, compounded
weekly. After five years, this amount has accumulated to R50 000. The amount that was invested
initially is
R25 001,79.
2
