INTRODUCTORY FINANCIAL
MATHEMATICS(DSC1630) ASSIGNMENT 2
SOLUTIONS SEMESTER 2 2023
UNIQUE NUMBER 613604
DUE DATE 22 AUGUST 2023
, NOTE: ARRANGEMENT OF QUESTIONS MAY DIFFER BUT ALL ASSIGNMENT
QUESTIONS ARE COVERED HERE
QUESTION 1
A loan will be paid back by means of payments of R250 each, every six month for
ten years. An interest rate of 5% per year, compounded every six months, will be
applicable. The present value of the loan is
a. R1 930,43.
b. R6 386,16.
c. R3 144,47.
d. R3 897,29.
QUESTION 2
A nominal interest rate of 19,40% per year, compounded monthly, is equivalent to a
continuous compounding rate of
a. 21,22%.
b. 21,41%.
c. 19,56%.
d. 19,24%.
MATHEMATICS(DSC1630) ASSIGNMENT 2
SOLUTIONS SEMESTER 2 2023
UNIQUE NUMBER 613604
DUE DATE 22 AUGUST 2023
, NOTE: ARRANGEMENT OF QUESTIONS MAY DIFFER BUT ALL ASSIGNMENT
QUESTIONS ARE COVERED HERE
QUESTION 1
A loan will be paid back by means of payments of R250 each, every six month for
ten years. An interest rate of 5% per year, compounded every six months, will be
applicable. The present value of the loan is
a. R1 930,43.
b. R6 386,16.
c. R3 144,47.
d. R3 897,29.
QUESTION 2
A nominal interest rate of 19,40% per year, compounded monthly, is equivalent to a
continuous compounding rate of
a. 21,22%.
b. 21,41%.
c. 19,56%.
d. 19,24%.
