DSC1630 EXAM PACK 2025

DSC1630 - Introductory Financial Mathematics EXAM PACK 2025 1. On his ninth birthday on 21 February Shelly received R420. His parents immediately invested the money in an account that earns 7,5% simple interest. The amount of money that can be withdrawn on 5 June for the same year equals [1] R411,21. [2] R428,89. [3] R428,98. [4] R429,07. [5] none of the above. 2. An interest rate of 16,4% compounded quarterly is equivalent to a weekly compounded interest of [1] 16,073%. [2] 16,098%. [3] 16,714%. [4] 16,741%. [5] none of the above. 3. On Dan’s 21st birthday he notices that he is going bald. He decides that he will go for a hair implant when he turns 30. He estimates that the implant will cost him R12 500. He starts saving immediately by paying an amount monthly into an account earning 9,09% interest compounded monthly. The monthly payment that Dandy Darrell makes into the account equals [1] R64,27. [2] R74,63. [3] R75,20. [4] R115,75. [5] none of the above. 4. At an interest rate of 14,9% per year compounded quarterly, R1 000 invested monthly for 12 years will accumulate to [1] R66 914,38. [2] R385 478,48. [3] R390 233,94. [4] R395 600,34. [5] none of the above. S - The Marketplace to Buy and Sell your Study Material Questions 5 and 6 refer to the following situation: A study was undertaken at eight garages to determine how the resale value of a car is affected by its age. The following data was obtained: The garage manager suspects a linear relationship between the two variables. Fit acurve of the form y = a + bx to the data. 5. The equation is equal to [1] y = 7,0417 − 0,001x. [2] y = 0,001 + 7,0417x. [3] y = 48 644,17 − 6 596,93x. [4] y = 6 596,93 − 48 644,17x. [5] none of the above. 6. The correlation coefficient equals [1] 0,0000. [2] −0,9601. [3] 0,8450. [4] 1,0000. [5] none of the above. 7. Rian borrows R2 000 at a simple interest rate of 8% per annum. The amount that he owes at the beginning of the eighth year equals [1] R1 120,00. [2] R3 120,00. [3] R3 280,00. S - The Marketplace to Buy and Sell your Study Material Downloaded by: LIBRARY | Distribution of this document is illegal Want to earn $103 per month? S - The Marketplace to Buy and Sell your Study Material S - The study-notes marketplace [4] R3 427,65. [5] none of the above. 8. After making a down payment of R5 000 on a boat, Mr Brown also had to pay an additionalR700 per month for it for three years. Interest was charged at 14,5% per year compounded monthly on the unpaid balance. The original price of the boat equals [1] R6 611,60. [2] R20 336,44 [3] R25 336,44. [4] R36 337,23. [5] none of the above. 9. Joe needs R14 500 to buy a computer. Computer World is prepared to lend him the money on condition that he signs a promissory note to pay back the money in ten months’ time. What is the value of the promissory note if Computer World charges 28% discount? [1] R11 116,67. [2] R11 756,76. [3] R17 883,33. [4] R18 913,04. [5] none of the above. 10. If the continuous compounding rate for a nominal rate compounded every three months is11,832%, then the nominal rate equals [1] 11,66%. [2] 11,832%. [3] 12,01%. [4] 12,07%. [5] 12,56%. S - The study-notes marketplace Downloaded by: faniedelport | Distribution of this document is illegal S - The Marketplace to Buy and Sell your Study Material Downloaded by: LIBRARY | Want to earn $103 per month? S - The Marketplace to Buy and Sell your Study Material S - The study-notes marketplace 11. Lia is making monthly payments towards a loan of R250 000 which she borrowed for six years. An interest rate of 11,8% per year, compounded monthly, is applicable. After 33 months the interest rate changes to 15,6% per year, compounded quarterly. The amount that Lia has paid off when the interest rate changes equals [1] R93 151,85. [2] R102 009,77 [3] R147 990,23. [4] R156 848,15. [5] R160 432,47. 12. The effective rate for a continuous compounding rate of 17,5% is [1] 16,13%. [2] 17,5%. [3] 19,12%. [4] 19,13%. [5] none of the above. Questions 13 and 14 relate to the following situation: Tracy deposited R25 000 into an account earning 9,75% interest per year, compounded quarterly. After five years the interest rate changed to 10% per year, compounded weekly. She then decided to deposit R500 every week into this account. 13. The balance in this account after five years equals [1] R34 750,00. [2] R37 187,50. [3] R41 198,25. [4] R48 780,49. [5] none of the above. S - The study-notes marketplace Downloaded by: faniedelport | Distribution of this document is illegal S - The Marketplace to Buy and Sell your Study Material Downloaded by: LIBRARY | Want to earn $103 per month? S - The Marketplace to Buy and Sell your Study Material S - The study-notes marketplace 14. After owning this account for nine years Sally decides to close it. The amount of moneythat Sally can expect to withdraw then equals [1] R127 725,46. [2] R129 000,00. [3] R167 519,80. [4] R168 194,18. [5] R188 074,51. 15. Cliff bought a 107 cm plasma screen television set. He agrees to immediately start to pay R1 403 per month. The term of the agreement is 24 months and the applicable interestrate is 20,124% per year, compounding monthly. The original price of the television set equals [1] R27 079,22. [2] R27 533,34. [3] R27 995,08. [4] R30 385,36. [5] R33 672,00. 16. A simple interest rate of 9,68% is equivalent to a simple discount rate of 7,5%. The time under consideration is [1] 2,2 years. [2] 2,4 years. [3] 2,8 years. [4] 3 years. [5] 6 years. S - The study-notes marketplace Downloaded by: faniedelport | Distribution of this document is illegal S - The Marketplace to Buy and Sell your Study Material Downloaded by: LIBRARY | Want to earn $103 per month? S - The Marketplace to Buy and Sell your Study Material S - The study-notes marketplace 17. The following table shows the number of loans approved for different amounts during the second half of 2008. Amount of loan Number of loans in R100 000 (x) 2 45 3 250 4 250 5 175 6 125 The regression line equation is [1] y = 0,00279x+ 3,528. [2] y = 3,528x+ 0,00279. [3] y = 8,5x + 135. [4] y = 135x+ 8,5. [5] y = none of the above. 18. Jonas borrows R2 000 at a simple interest rate of 8% per annum. The amount that he owes at the beginning of the eighth year equals [1] R1 120,00. [2] R3 120,00. [3] R3 280,00. [4] R3 427,65. [5] none of the above. 19. A bank’s discount rate is 12%. You sign an agreement to pay the bank R5 000 in six months’ time. The amount of money that you will receive now equals [1] R4 230,00. [2] R4 245,28. [3] R4 500,00. [4] R4 700,00. [5] none of the above. S - The study-notes marketplace Downloaded by: faniedelport | Distribution of this document is illegal S - The Marketplace to Buy and Sell your Study Material Downloaded by: LIBRARY | Want to earn $103 per month? S - The Marketplace to Buy and Sell your Study Material S - The study-notes marketplace Questions 20 and 21 relate to the following situation: Mary wants to buy the cake Bakery . She needs to pay a deposit on 17 March. She invests R50 000 on 23 June the previous year into an account that earns 11,75% interest per year, compounded on the first day of every month. She wants to use the accumulated amount as a deposition the bakery. 20. If simple interest is used for odd periods and compound interest for the rest, then the accumulated amount on 17 March will equal [1] R54 128,77. [2] R54 192,76. [3] R54 471,89. [4] R63 312,80. [5] none of the above. 21. If fractional compounding is used for the full term, then the accumulated amount on 17 Marchwill equal [1] R54 361,12. [2] R54 442,46. [3] R54 470,70. [4] R63 911,30. [5] none of the above. 22. The effective rate for a nominal rate of 18,75% per year compounded every three months equals [1] 18,75%. [2] 20,11%. [3] 26,52%. [4] 29,95%. [5] none of the above. S - The study-notes marketplace Downloaded by: faniedelport | Distribution of this document is illegal S - The Marketplace to Buy and Sell your Study Material Downloaded by: LIBRARY | Want to earn $103 per month? S - The Marketplace to Buy and Sell your Study Material S - The study-notes marketplace 23. If R25 000 accumulates to R32 850 after 39 months, then the continuous compounding rate equals [1] 7,5%. [2] 7,6%. [3] 8,4%. [4] 8,8%. [5] 9,7%. 24. Three years ago Billy borrowed R3 800 from Patricia at 13,25% per year, compounded quarterly, to be paid back then in five years’ time. Six months ago he also borrowed R7 500 from her at 9,09% per year, compounded monthly, due two years from now. The amount of money that Billy must pay Patricia back two years from now equals [1] R14 170,98. [2] R15 653,34. [3] R16 281,06. [4] R16 365,61. [5] R16 697,43. Questions 25 and 26 relate to the following situation: During a three-year period when her business was prospering, Sue was able to deposit R3 000 at the end of every month into an account earning 12% interest per year, compounded monthly. At the end of the three year period Sue decided to stop her payments into this account as the interest rate was lowered to 8% per year compounded quarterly. She then left the money in the account for ten years. She then decided to exhaust this account by withdrawing equal amounts every six months for five years. The interest rate was still 8% per year but was now compounded semiannually. 25. The total amount of the savings at the end of the ten-year period was [1] R129 230,64 [2] R224 993,67 [3] R285 346,37 [4] R402 676,10 [5] none of the above. S - The study-notes marketplace Downloaded by: faniedelport | Distribution of this document is illegal S - The Marketplace to Buy and Sell your Study Material Downloaded by: LIBRARY | Want to earn $103 per month? S - The Marketplace to Buy and Sell your Study Material S - The study-notes marketplace 26. The amount that Sue will withdraw every six months equals [1] R10 800,97. [2] R15 932,97. [3] R27 739,68. [4] R35 180,62. [5] R49 646,32. 27. The accumulated value of R500 payments made at the end of each month for a period of eight years if interest is compounded semi-annually at 13,5% per year equals approximately [1] R48 000. [2] R54 000. [3] R84 000. [4] R85 000. [5] R86 000. Questions 28 and 29 relate to the following situation: Rajesh Patel invests R10 000 in a herb shop. Her cash flows for the next five years are R1 000, R2 000, R4 000, R5 000 and R6 000 28. If the capital cost equals 15%, the net present value will equal [1] R853,74. [2] R3 268,86. [3] R3 977,41. [4] R4 574,03. [5] none of the above. 29. The profitability index will equal [1] 1,085. [2] 8,54. [3] 32,68. [4] 39,77. [5] none of the above. S - The study-notes marketplace Downloaded by: faniedelport | Distribution of this document is illegal S - The Marketplace to Buy and Sell your Study Material Downloaded by: LIBRARY | Want to earn $103 per month? S - The Marketplace to Buy and Sell your Study Material S - The study-notes marketplace Questions 30 and 31 relate to the following situation: Consider the following bond: Bond XXX: Coupon rate (half yearly) 10,9% per year Redemption date 8 March 2041 Yield to maturity 8,9% per year Settlement date 3 September 2011. 30. The all-in price equals [1] R119,07682%. [2] R119,90475%. [3] R119,98089%. [4] R125,39618%. [5] none of the above. 31. The accrued interest equals [1] −R0,77644%. [2] −R0,80630%. [3] R0,79973%. [4] R4,68849%. [5] none of the above. 32. The clean price equals [1] R119,85326%. [2] R120,70448% [3] R120,70768%. [4] R120,78719%. [5] none of the above. S - The study-notes marketplace Downloaded by: faniedelport | Distribution of this document is illegal S - The Marketplace to Buy and Sell your Study Material Downloaded by: LIBRARY | Want to earn $103 per month? S - The Marketplace to Buy and Sell your Study Material S - The study-notes marketplace Questions 33, 34 and 35 relate to the following situation: Barbie Doll sells plastic dolls. The following table represents the selling price per doll(y) in Randand the number of dolls sold (x). x y Barbie suspects a linear relationship between the two variables. Fit a curve of the form y = a+bx to the data. 33. The standard deviation for the number of dolls sold is [1] 2,21. [2] 11,49. [3] 12,11. [4] 72,5. [5] none of the above. 34. The slope of the regression line is [1] −0,9404. [2] −0,1718. [3] −0,9494. [4] 12,1111 [5] none of the above. 35. The correlation coefficient, r, is approximately [1] −0,9404. [2] −0,1718. [3] 12,1111. [4] 16,7114. [5] none of the above 36. An amount of R4 317,26 was borrowed on 5 May at a simple interest rate of 15% per year. The value of this loan on 16 August of the same year will equal © S - The study-notes marketplace Downloaded by: faniedelport | Distribution of this document is illegal S - The Marketplace to Buy and Sell your Study Material Downloaded by: LIBRARY | Want to earn $103 per month? S - The Marketplace to Buy and Sell your Study Material S - The study-notes marketplace [1] R4 315,55. [2] R4 500,00. [3] R4 318,96 [4] R4 688,63. [5] none of the above 37. The amount of money received as interest on 16 August of the same year will equal [1] R181,04. [2] R182,74. [3] R184,45. [4] R188,63. 38. A bank’s discount rate is 12%. You must pay the bank R5 000 in six months’ time. The amount of money that you will receive now equals [1] R4 230,00. [2] R4 245,28. [3] R4 500,00. [4] R4 700,00 39. Pretty deposits R15 000 into a new savings account. The amount of money that she will have in the bank after three years if interest is compounded monthly at 8% per year, equals? [1] R15 302,00. [2] R19 053,56. [3] R218 453,33. [4] R18 895,68. S - The study-notes marketplace Downloaded by: faniedelport | Distribution of this document is illegal S - The Marketplace to Buy and Sell your Study Material Downloaded by: LIBRARY | Want to earn $103 per month? S - The Marketplace to Buy and Sell your Study Material S - The study-notes marketplace Question 40 and 41 relate to the following situation: On 5 April Joe invested R75 000 in an account earning 8,37% interest per year, compounded monthly. Interest is credited on the first day of every month. 40. If simple interest is used for odd periods calculations and compound interest for the full period then the amount of money that Joe will have available on 21 November of the same year will equal [1] R78 195,04. [2] R78 955,68. [3] R79 002,95. [4] R79 020,96. 41. If fractional compounding is used for the full term then the amount that Joe will have available on 21 November of the same year will equal [1] R78 439,73. [2] R79 020,29. [3] R79 027,82. [4] R79 047,39. 42. The effective rate for a nominal rate of 18,75% per year compounded every three months equals [1] 18,75% [2] 20,11%. [3] 26,52% [4] 29,95%. S - The study-notes marketplace Downloaded by: faniedelport | Distribution of this document is illegal S - The Marketplace to Buy and Sell your Study Material Downloaded by: LIBRARY | Want to earn $103 per month? S - The Marketplace to Buy and Sell your Study Material S - The study-notes marketplace 43. Three years ago Thabo borrowed R10 000 from Judith that is due two years from now. He must also pay her R5 000 four years from now. Thabo decides to settle his obligations two years from now. The amount that Thabo will pay Julie two years from now if the applicable interest rate is9,5% per year, compounded quarterly, equals [1] R15 000,00. [2] R15 991,10. [3] R20 135,09. [4] R20 543,02. Questions 44 and 45 relate to the following situation: During athree-year period when her business was prospering, Patty was able to deposit R3 000 at the end of every month into an account earning 12% interest per year, compounded monthly. At the end of the three year period Patty decided to stop her payments into this account as the interest was lowered to 8% per year compounded quarterly. She left the money in the account for ten years. She then decided to exhaust this account by withdrawing equal amounts every six months for five years. The interest rate was still 8% per year but was now compounded semiannually. 44. The total amount of the savings at the end of the ten-year period was [1] R129 230,64. [2] R224 993,67. [3] R285 346,37. [4] R402 676,10. 45. The amount that Patty will withdraw every six months equals [1] R15 932,97. [2] R27 739,68. [3] R35 180,62. [4] R49 646,32. © S - The study-notes marketplace Downloaded by: faniedelport | Distribution of this document is illegal S - The Marketplace to Buy and Sell your Study Material Downloaded by: LIBRARY | Want to earn $103 per month? S - The Marketplace to Buy and Sell your Study Material S - The study-notes marketplace 46. The accumulated value of R500 payments made at the end of each month for a period of eightyears if interest is compounded semi-annually at 13,5% per year equals approximately [1] R48 000. [2] R54 000. [3] R84 000. [4] R86 000. 47. Inno needs R10 500 in ten months' time to buy herself a new lens for her spectacle Two months ago she deposited R9 000 in a savings account at a simple interest rate of 11,5% per year How much money will Inno still need to buy the lens ten months from now? [1] R229,50 [2] R408,67 [3] R465,00 [4] R637,50 [5] None of the above 48. Spookie borrowed money on 31 August and agreed to pay back the loan on 2 November of the same year If the discount rate is 18% per year and he received R5 000 on 31 August, what is the value of the loan that Spookie has to pay the bank on 2 November? [1] R5 000,00 [2] R5 160,32 [3] R4 844,66 [4] R5 155,34 [5] None of the above 49. If money is worth 12% per annum compounded monthly, the principal P will double S - The study-notes marketplace Downloaded by: faniedelport | Distribution of this document is illegal S - The Marketplace to Buy and Sell your Study Material Downloaded by: LIBRARY | Want to earn $103 per month? S - The Marketplace to Buy and Sell your Study Material S - The study-notes marketplace The time under consideration is therefore . [1] 5,81 years. [2] 6,12 years [3] 7,27 years [4] 8,33 years [5] 69,66 years Questions 50 and 51relate to the Following situation: Robert wants to open a delicatessen in the Food Lovers Mall. On 7 March he invested R375 000 into an account earning 10,45% interest per year, compounded monthly. Interest is credited on the first of every month Bong?, will move into his new shop on 28 November of the same year 50. If simple interest is used for odd period calculations and compound interest for full periods, then the amount of money that Robert will have available in the account on 28 November of the same year will equal . [1]R403 558,56 [2]R404 300,59. [3]R404 348,61 [4]R404 419,59 [5]R404 540,76 51. If fractional compounding is used for the full term, the amount of money that Robert will have available in the account on 28 November will equal [1]R403 558,56 [2]R404 300,59 [3]R404 348,61 [4]R404 415,85 [5]R404 540,76 S - The study-notes marketplace Downloaded by: faniedelport | Distribution of this document is illegal S - The Marketplace to Buy and Sell your Study Material Downloaded by: LIBRARY | Want to earn $103 per month? S - The Marketplace to Buy and Sell your Study Material S - The study-notes marketplace 52. Moses 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 equals [1] R15 300,00 [2] R25 001,79 [3] R26 105,54 [4] R29 515,94 [5] R34 700,00 53. After investing an amount of money in an account earning interest at a continuous compounding rate of 10,15% per year, you receive R32 412,87 The amount of money that you invested 57 weeks earlier equals approximately [1] R29 000,00. [2] R29 153,86 [3] R29 167,68. [4] R32 768,16. [5] R36 227,38 54. An interest rate of 14,9% per year, compounded quarterly, is equivalent to a weekly compounded interest rate of . [1] 14,65%. [2] 14,88% [3] 15,16%. [4] 19,02%. [5] none of the above 55. If the nominal interest rate per year is 16,5% per annum compounded at the end of every second month, then the effective interest rate equals © S - The study-notes marketplace Downloaded by: faniedelport | Distribution of this document is illegal S - The Marketplace to Buy and Sell your Study Material Downloaded by: LIBRARY | Want to earn $103 per month? S - The Marketplace to Buy and Sell your Study Material S - The study-notes marketplace [1] 14,527% [2] 16,181% [3] 16,677%. [4] 17,677%. [5] 18,000% 56. Frank inherits R He decides to have it paid out to him in two payments one payment four years from now and the other payment, three times the first payment, ten years from now The amount that he can expect to receive ten years from now, if an interest rate of 12,25% per year compounded quarterly is applicable, approximately equals [1] R [2] R1875 000. [3] R [4] R [5] R 57. Six years ago Paul borrowed 8150 000 from Mary on condition that he would pay her back nine years from now at an interest rate of 15,5% per year compounded monthly He also owes Mary R250 000 payable six years from now at an interest rate of 16,4% per year compounded ha1f-yearly. Paul asked Mary if he could settle both his debts in one payment three years from now. The total amount that Paul has to pay Mary three years from now equals [1] R400 000,00 [2] R475 017,72 [3] R488 092,15 [4] R755 667,10 [5] R777 202,69 S - The study-notes marketplace Downloaded by: faniedelport | Distribution of this document is illegal S - The Marketplace to Buy and Sell your Study Material Downloaded by: LIBRARY | Want to earn $103 per month? S - The Marketplace to Buy and Sell your Study Material S - The study-notes marketplace 58. The sports club's fund must pay Joy R3 500 per month indefinitely as compensation for an injury she sustained at the club The approximate amount of money available in the fund for this purpose now, if an interest rate of 11,2% per year, compounded monthly is applicable, equals . [1] R229 934. [2] R330 132 [3] R334 661 [4] R375 000 [5] R390 443 59. Monthly payments of R1200 are paid into a savings account. The applicable interest rate is 7,75% per years compounded quarterly. After ten years the accumulated amount of these monthly payments approximately to the nearest hundred rand equals [1] R144 000 [2] R215 900 [3] R216 500. [4] R291 100 [5] none of the above. S - The study-notes marketplace Downloaded by: faniedelport | Distribution of this document is illegal S - The Marketplace to Buy and Sell your Study Material Downloaded by: LIBRARY | Want to earn $103 per month? S - The Marketplace to Buy and Sell your Study Material S - The study-notes marketplace 60. Felicia takes out an endowment policy that matures in 20 years time The expected interest rate per year is 10% Her first payment is R3 600 per year, after which the yearly payment will increase by R360 each year. The amount that she can expect to receive on the maturity date will be [1] R213 030 [2] R340 380 [3] R412 380 [4] R484 380 [5] none of the above Questions 61 and 62 relate to the following situation: Nia wants to open a curry shop Her husband Raj lends her the money However, she will only be able to start paying him back five years from now She will then be able to pay R25 000 every second month for six years Interest is charged at 16,9% per year, compounded every two months 61. The amount that Nia owes her husband when she starts paying him back equals . [1] R184 087,12 [2] R229 591,36 [3] R487 279,43 [4] R561 047,91 [5] R900 000,00 62. The amount that Nia’s husband lends her now equals [1] R81 795,20 [2] R105 167,85 [3] R216 512,27 [4] R243 834,05 [5] R391 144,22 © S - The study-notes marketplace Downloaded by: faniedelport | Distribution of this document is illegal S - The Marketplace to Buy and Sell your Study Material Downloaded by: LIBRARY | Want to earn $103 per month? S - The Marketplace to Buy and Sell your Study Material S - The study-notes marketplace 63. Lilian wants to upgrade her studio in four years' time and estimates that it will cost her R350 000 She starts to save immediately by depositing R5 000 at the beginning of every month in an account earning 12,4% per year, compounded monthly. The amount still needed just before she starts to renovate her studio will equal [1] R38 117,25 [2] R41 307,07 [3] R49 591,37 [4] R51 538,80 [5] R110 000,00 64. Ken's debt of R275 000 from Tia at an interest rate of 16% per year, compounded quarterly, is payable in five years' time. The debt will be discharged by the sinking fund method The sinking fund will earn interest at a rate of 14% per year, compounded half-yearly The half-yearly deposits in the sinking fund approximately equal . [1] R9 235 [2] R13 750. [3] R19 904. [4] R20 235. [5] R27 500. 65. Tino's investment of R in Pump Up The Jam restaurant is expected to yield the following sequence of yearly cash flows over the next six years R350 000, 8320 000, R240 000, R500 000, R80 000 and R60 000 The IRR (internal rate of return) of the investment therefore equals [1] 6,71% [2] 7,94% [3] 12,41%. S - The study-notes marketplace Downloaded by: faniedelport | Distribution of this document is illegal S - The Marketplace to Buy and Sell your Study Material Downloaded by: LIBRARY | Want to earn $103 per month? S - The Marketplace to Buy and Sell your Study Material S - The study-notes marketplace [4] 14,76%. [5] 15,24% Questions 66,67 and 68relate to the following situation: Adam buys a bachelor flat and makes a down payment of 20% on the price of the flat. For the remaining amount he manages to secure a loan at an interest rate of 9,75% per year, compounded monthly for a period of 20 years His monthly payment is R5311,69 66. The size of the loan (to the nearest rand) equals . [1] R295 723 [2] R491 712 [3] R560 000 [4] R [5] none of the above 67. The price of the flat is [1] R354 868. [2] R614 640. [3] R672 000 [4] R700 000 [5] R1529 767 68. If an average inflation rate of 4,67% per year is expected, then the total real cost of the loan equals [1] R101 198,33 [2] R267 543,13 S - The study-notes marketplace Downloaded by: faniedelport | Distribution of this document is illegal S - The Marketplace to Buy and Sell your Study Material Downloaded by: LIBRARY | Want to earn $103 per month? S - The Marketplace to Buy and Sell your Study Material S - The study-notes marketplace [3] R458 801,66 [4] R560 000,00 [5] R827 543,13 69. Natural Beauty Boutique sells diamonds The following table represents the number of diamonds sold (y) and the carat value of the diamonds (x) x 0,5 1 2 5 y Suppose there is a linear relationship between the carat value of the diamond and the number of diamonds sold. The coefficient of correlation between the carat value of the diamond and the number of diamonds sold is ... [1] —2,0758. [2] —0,98185 [3] 0,98185 [4] 1,20213 [5] 1,6250. 70. The slope of the regression line of the above mentioned relationship is [1] —207,59 [2] —0,98185. 2,125 [3] 1 021,13. [4] none of the above . S - The study-notes marketplace Downloaded by: faniedelport | Distribution of this document is illegal S - The Marketplace to Buy and Sell your Study Material Downloaded by: LIBRARY | Want to earn $103 per month? S - The Marketplace to Buy and Sell your Study Material S - The study-notes marketplace 71. Consider stock ABC Coupon rate. 9,75% per year Yield to maturity 11,25% per year Settlement date 15 November 2012 Maturity date 7 August 2035 The all-in price equals [1] R85,63641% [2] R87,80282% [3] R87,86673% [4] R90,39112% [5] R92,67782% 72. The equation for the present value of stock CCC on 17 December 2012 is given by 107,55174 = daw0,135 + 100(1 + 0,15)_29 2 The half-yearly coupon rate d is equal to [1] 6,75% [2] 7,35% [3] 8,55% [4] 14,70% [5] none of the above 73. If the profitability index of the Supa Save Parlour is 1,0514 and the NPV (net present value) equals R25 700, then the original investment approximately equals [1] R12 528 [2] R13 172 [3] R24 444 S - The study-notes marketplace Downloaded by: faniedelport | Distribution of this document is illegal S - The Marketplace to Buy and Sell your Study Material Downloaded by: LIBRARY | Want to earn $103 per month? S - The Marketplace to Buy and Sell your Study Material S - The study-notes marketplace [4] R25 700. [5] R50 000 74. You must choose between two investments, A and B The profitability index (PI), net present value (NPV) and internal rate of return (IRR) of the two investments are as follows Criteria Investment A Investment B NPV — PI 0,945 1,051 IRR 15,37 21,82 What investment/s should you choose, taking all the above criteria into consideration, if the cost of capital is equal to 19% per year? [1] A [2] B [3] Both A and B [4] Neither A nor B [5] Too little information to make a decision 75. At what simple interest rate must R2 000 be invested to accumulate to R4 640 at the end of 10 years? [1] 23,2%. [2] 10,0%. [3] 13,2%. [4] 5,69%. [5] Not one of the alternatives listed above. S - The study-notes marketplace Downloaded by: faniedelport | Distribution of this document is illegal S - The Marketplace to Buy and Sell your Study Material Downloaded by: LIBRARY | Want to earn $103 per month? S - The Marketplace to Buy and Sell your Study Material S - The study-notes marketplace 76. What was the present value of a loan on 5 May if it accumulates to R4 500 on 16 August at a simple interest rate of 15% per year? [1] R4 315,55. [2] R4 318,96. [3] R4 317,26. [4] R4 688,63. [5] Not one of the alternatives listed above