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ASSIGNMENT 3 SEMESTER 1 & 2 2021
UniQUE NUMBER: 285271
Solutions, ExPLANATIONS, WORKINGS, AND REfeRences
+27 61 844 1387
1= 4 The time line is:
In this case we firstly need to change the quarterly compounded interest rate to a
monthly compound interest rate using the above formula.
Secondly, we use the new monthly interest rate to calculate the future value of the
annuity:
, 2=1 The time line is:
Now given are the value she would need or future value S of R145 000, the
compound interest rate jm of 11,05% and monthly compounding periods (m = 12).
Asked is the size of her monthly deposits.
Thus
ASSIGNMENT 3 SEMESTER 1 & 2 2021
UniQUE NUMBER: 285271
Solutions, ExPLANATIONS, WORKINGS, AND REfeRences
+27 61 844 1387
1= 4 The time line is:
In this case we firstly need to change the quarterly compounded interest rate to a
monthly compound interest rate using the above formula.
Secondly, we use the new monthly interest rate to calculate the future value of the
annuity:
, 2=1 The time line is:
Now given are the value she would need or future value S of R145 000, the
compound interest rate jm of 11,05% and monthly compounding periods (m = 12).
Asked is the size of her monthly deposits.
Thus
