DSC1630 Assignment 3 (QUALITY ANSWERS) Semester 2 2024

This document contains workings, explanations and solutions to the DSC1630 Assignment 3 (QUALITY ANSWERS) Semester 2 2024. For assistance whats-app us on 0.6.8..8.1.2..0.9.3.4... Question 1 Complete Mark 1.00 out of 1.00 Question 2 Complete Mark 1.00 out of 1.00 QUIZ Quarterly payments of R7 000 are made into an account earning 6,57% per year, compounded monthly. The accumulated amount after 12 yearsis a. R122 095,12. b. R336 000,00. c. R231 205,73. d. R506 569,30. Cyril buys a house and makes a down payment of 35% of the price of the house. He manages to secure a loan at an interest rate of 13,25% peryear, compounded monthly, for a period of 20 years. His monthly payment is R10 437,26. The size of the down payment (to the nearest rand) is a. R527 959. b. R472 500. c. R307 125. d. R876 730. Question 3 Complete Mark 1.00 out of 1.00 Question 4 Complete Mark 1.00 out of 1.00 Cyril buys a house and makes a down payment of 35% of the price of the house. He manages to secure a loan at an interest rate of 13,25% peryear, compounded monthly, for a period of 20 years. His monthly payment is R10 437,26. If an average yearly infl ation rate of 5,57% is expected, then the real cost (to the nearest rand) of the loan (the difference between the total valueof the loan and the actual principal borrowed) is a. R631 108. b. R1 350 000. c. R877 500. d. R1 508 608. The last six payments of a loan are refl ected in the following amortisation schedule. Month Outstanding principal atthe beginning of themonth Interest due at the endof the month Payment Principal repaid 175 49 694,10 422,40 8 530,49 8 108,09 176 A 353,48 8 530,49 F 177 33 409,01 C 8 530,49 G 178 25 162,50 D 8 530,49 8 316,61 179 B 143,19 8 530,49 H 180 8 458,59 E 8 530,49 I The applicable interest rate per year (compounded monthly) is a. 8,50%. b. 4,95%. c. 5,20%. d. 10,20%. Question 5 Complete Mark 1.00 out of 1.00 The last six payments of a loan are refl ected in the following amortisation schedule. Month Outstanding principal atthe beginning of themonth Interest due at the endof the month Payment Principal repaid 175 49 694,10 422,40 8 530,49 8 108,09 176 A 353,48 8 530,49 F 177 33 409,01 C 8 530,49 G 178 25 162,50 D 8 530,49 8 316,61 179 B 143,19 8 530,49 H 180 8 458,59 E 8 530,49 I The value of A is a. R41 586,01. b. R42 652,45. c. R40 540,45. d. R40 810,13. Question 6 Complete Mark 1.00 out of 1.00 Question 7 Complete Mark 1.00 out of 1.00 The last six payments of a loan are refl ected in the following amortisation schedule. Month Outstanding principal atthe beginning of themonth Interest due at the endof the month Payment Principal repaid 175 49 694,10 422,40 8 530,49 8 108,09 176 A 353,48 8 530,49 F 177 33 409,01 C 8 530,49 G 178 25 162,50 D 8 530,49 8 316,61 179 B 143,19 8 530,49 H 180 8 458,59 E 8 530,49 I The accumulated amount after eight years of monthly payments of R1 900 each into an account earning 9,7% interest per year, compoundedmonthly, is a. R274 069,25. b. R126 532,64. c. R182 400,00. d. R395 077,74. a. b. c. d. Question 8 Complete Mark 1.00 out of 1.00 Question 9 Complete Mark 1.00 out of 1.00 Question 10 Complete Mark 1.00 out of 1.00 Ntombi wants to open a Paint-and-Decor Shop and borrows R450 000 from Uncle Sakhile. She realises that she will only be able to start payinghim back fi ve years from now. Money is worth 9,8% per year, compounded every three months. The amount of money that Ntombi will owe Uncle Sakhile fi ve years from now is a. R662 832,69. b. R670 500,00. c. R730 216,71. d. R718 164,96. Ntombi wants to open a Paint-and-Decor Shop and borrows R450 000 from Uncle Sakhile. She realises that she will only be able to start payinghim back fi ve years from now. Money is worth 9,8% per year, compounded every three months. The amount of money that Ntombi will then (after fi ve years) have to pay Uncle Sakhile every three months for four years to pay off her debt is a. R55 716,45. b. R54 796,89. c. R51 159,99. d. R50 574,97. Moshe took out an endowment policy for an annual payment of R1 500 that will increase annually with R150. The policy matures in 20 yearswith an expected annual interest rate of 15%. The amount that Moshe can expect to receive after 20 years is a. R256 108,96. b. R236 108,96. c. R166 897,15. d. R169 031,91. Question 11 Complete Mark 1.00 out of 1.00 Question 12 Complete Mark 1.00 out of 1.00 Question 13 Complete Mark 1.00 out of 1.00 On her 40th birthday Itumleng decides that she will go for a facelift when she turns 50. She estimates that it will cost her R48 000 when sheturns 50. She starts saving immediately by paying an amount each month into an account earning 8,58% interest per year, compoundedmonthly. The monthly payment is a. R255,80. b. R252,18. c. R597,19. d. R592,95. The Gliding Fund must pay Sanele R18 000 every three months indefi nitely as compensation. Money is worth 11,4% per year, compoundedquarterly. The opening balance of this fund is approximately a. R474 536. b. R631 579. c. R1 105 351. d. R157 895. The Gliding Fund must pay Sanele R18 000 every three months indefi nitely as compensation. Money is worth 11,4% per year, compoundedquarterly. Sanele asks to reschedule the compensation in three payments, the fi rst payment now, the second payment twice the size of the fi rst paymentfour years from now, and the third payment three times the size of the fi rst payment nine years from now. The Gliding Fund agrees on conditionthat the interest rate changes to 10,95% per year, compounded monthly. The amount to the nearest hundred rand that Sanele can expect toreceive four years from now is a. R864 000. b. R557 510. c. R184 800. d. R369 600. Question 14 Complete Mark 1.00 out of 1.00 Question 15 Complete Mark 1.00 out of 1.00 Zakes has just realised that his silver anniversary is 20 months away. He wants to buy his lovely devoted wife, Nandi, a diamond ring for theoccasion. He immediately starts to make monthly deposits of R1 500 into an account earning 9,30% interest per year, compounded monthly.After 11 deposits, he increases his monthly payments to R2 500. The amount of money that Zakes will have available just before his anniversaryto buy the diamond ring is a. R40 677,56. b. R39 241,54. c. R40 497,68. d. R41 921,42. Cyril buys a house and makes a down payment of 35% of the price of the house. He manages to secure a loan at an interest rate of 13,25% peryear, compounded monthly, for a period of 20 years. His monthly payment is R10 437,26. The size of the loan (to the nearest rand) is a. R1 508 454. b. R877 500. c. R869 941. d. R1 020 091.