DSC1630 Assignment 2 (COMPLETE ANSWERS) Semester 1- Due March 2025
DSC1630 Assignment 2 (COMPLETE ANSWERS) Semester 1- Due March 2025 Question 1 Determine the equivalent continuous compounding rate (to two decimal places) of an interest rate of 17,5% per year, compounded quarterly. [4] Question 2 If R35 000 accumulates to R48 320 at a continuous compounding rate of 8,6% per year, determine the term under consideration in years to two decimal places. [5] Question 3 Calculate the accumulated amount after eight years of weekly payments of R1 900 each into an account earning 9,7% interest per year, compounded weekly. Draw an appropriate timeline showing all the given values. [5] Question 4 Nolwazi wants to buy a new state of the art computer for R35 000. She decides to save by depositing an amount of R500 every month into an account earning 11,32% interest per year, compounded monthly. How many years (accurate to one decimal place) will it take Nolwazi to have R35 000 available? Draw an appropriate timeline showing all the given values. [6] Question 5 An investment account pays interest at the rate of 5% per year, compounded semi-annually. What is the amount that should be deposited now so that R250 can be withdrawn at the end of every six months for the next 10 years? Draw an appropriate timeline showing all the given values. [5] TOTAL MARKS: 25
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