+
C
--+ +
--+ +-
ASSIGNMENrf 2-SEMESTrER 1
Altl: QUES ll!INS Pltll:tl AN WERED
f I I I
DUE: 25 MARltH 2026 +
DISCLAIMER:
+-
- rKr'1)rlttJM£NTT DR7lEFER£NCcANDu CE PUR SES-
DNLlv. I DD NDTt TAKE RESPONSIBILIITY tFDR AN~ PLAGIARl~M. ~MISUSE. DR
ACADEMIC MISCONDUCT RESULTING FROM THEIR USE. IT IS YOURLl_---.
I
- RESP0Ns1e1L1rt T ENsu E ORIGINALITY AN CDMPLIIAN E w1Ttl,__ I -
RELEVA T GUIDELINES DR STAND RDS-. ~
, PLEASE USE THIS DOCUMENT AS A GUIDE TO ANSWER YOUR ASSIGNMENT
Question 1: Present Value of a Loan
1. Identify the Problem Type
This is an Ordinary Annuity because there are equal payments (R = 250) at equal time
periods (every 6 months) and the interest is compounded. Since it does not state payments are
"invnediate· °' at the "beginning,• we assume they occur at the end of each period.
2. Timellne
• Start (TO}: Present Value (P V) is unknown.
• Period 1to 20: Payments of R = 250 occur every 6 months.
• End (Year 10): The 20th and final payment is made.
3. Given Values
• R = 250 (Payment amount)
• L=10 (Number of years)
• 1n = 2(Compounded f!Very six months/ semi-annually)
• im = 0.05 (Nominal interest rate)
• n = l x n1 = 10 x 2 = 20 (Total number of periods)
• i = 7,; = ~ = 0.025 (Interest rate per period)
C
--+ +
--+ +-
ASSIGNMENrf 2-SEMESTrER 1
Altl: QUES ll!INS Pltll:tl AN WERED
f I I I
DUE: 25 MARltH 2026 +
DISCLAIMER:
+-
- rKr'1)rlttJM£NTT DR7lEFER£NCcANDu CE PUR SES-
DNLlv. I DD NDTt TAKE RESPONSIBILIITY tFDR AN~ PLAGIARl~M. ~MISUSE. DR
ACADEMIC MISCONDUCT RESULTING FROM THEIR USE. IT IS YOURLl_---.
I
- RESP0Ns1e1L1rt T ENsu E ORIGINALITY AN CDMPLIIAN E w1Ttl,__ I -
RELEVA T GUIDELINES DR STAND RDS-. ~
, PLEASE USE THIS DOCUMENT AS A GUIDE TO ANSWER YOUR ASSIGNMENT
Question 1: Present Value of a Loan
1. Identify the Problem Type
This is an Ordinary Annuity because there are equal payments (R = 250) at equal time
periods (every 6 months) and the interest is compounded. Since it does not state payments are
"invnediate· °' at the "beginning,• we assume they occur at the end of each period.
2. Timellne
• Start (TO}: Present Value (P V) is unknown.
• Period 1to 20: Payments of R = 250 occur every 6 months.
• End (Year 10): The 20th and final payment is made.
3. Given Values
• R = 250 (Payment amount)
• L=10 (Number of years)
• 1n = 2(Compounded f!Very six months/ semi-annually)
• im = 0.05 (Nominal interest rate)
• n = l x n1 = 10 x 2 = 20 (Total number of periods)
• i = 7,; = ~ = 0.025 (Interest rate per period)
