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ASSIGNMENT 2
FIRST SEMESTER 2023
BY: MTHOMBENI: 0767297208
1
, 1. A savings account pays interest at the rate of 5% per year, compounded semi-annually. The
amount that should be deposited now so that R250 can be withdrawn at the end of every six
months for the next ten years is
A. R3 144,47.
B. R6 386,16.
C. R1 930,43.
D. R3 897,29.
2. Alice decides to invest R140 000 into an account earning 13,5% interest per year,
compounded quarterly. This new account allows her to withdraw an amount of money every
quarter for ten years after which time the account will be exhausted. The amount of money
that Alice can withdraw every quarter is
A. R3 500,00.
B. R1 704,28.
C. R6 429,28.
D. R8 594,82.
3. An amount borrowed at 29% interest per year, compounded continuously, has accumulated
to R38 279,20 after four years. The initial amount borrowed was
A.R13 823,05.
B.R12 000,00.
C.R12 005,53.
D.R17 721,85.
4. An interest rate of 17,5% per year, compounded quarterly, is equivalent to a continuous
compounding rate of
A. 17,500%.
B. 17,128%.
C. 19,125%.
D. 17,888%.
5. If 15% per year, interest is compounded every two months, then the equivalent weekly
compounded rate is
A. 14,464%.
B. 14,837%.
C. 14,484%.
D. 14,816%.
2
ASSIGNMENT 2
FIRST SEMESTER 2023
BY: MTHOMBENI: 0767297208
1
, 1. A savings account pays interest at the rate of 5% per year, compounded semi-annually. The
amount that should be deposited now so that R250 can be withdrawn at the end of every six
months for the next ten years is
A. R3 144,47.
B. R6 386,16.
C. R1 930,43.
D. R3 897,29.
2. Alice decides to invest R140 000 into an account earning 13,5% interest per year,
compounded quarterly. This new account allows her to withdraw an amount of money every
quarter for ten years after which time the account will be exhausted. The amount of money
that Alice can withdraw every quarter is
A. R3 500,00.
B. R1 704,28.
C. R6 429,28.
D. R8 594,82.
3. An amount borrowed at 29% interest per year, compounded continuously, has accumulated
to R38 279,20 after four years. The initial amount borrowed was
A.R13 823,05.
B.R12 000,00.
C.R12 005,53.
D.R17 721,85.
4. An interest rate of 17,5% per year, compounded quarterly, is equivalent to a continuous
compounding rate of
A. 17,500%.
B. 17,128%.
C. 19,125%.
D. 17,888%.
5. If 15% per year, interest is compounded every two months, then the equivalent weekly
compounded rate is
A. 14,464%.
B. 14,837%.
C. 14,484%.
D. 14,816%.
2
