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DSC1630 Assignment 2 2025 - Due March 2025

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DSC1630 Assignment 2 2025

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DSC1630
ASSIGNMENT 2
DUE DATE: APRIL 2025

, DSC1630/ASS02/1


Assignment 02 –Questions




Question 1

Determine the equivalent continuous compounding rate (to two decimal places) of an
interest rate of 17,5% per year, compounded quarterly.


r cont =4×ln(1+ 0.175/4 )


r cont 4 × ln ( 1 + 0.04375 )


r cont 4 × ln ( 1.04375 )


r cont 4 × 0.042829


r cont 0.1713


r cont 17.13 %


r cont


=17.13%

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