⋆ Σ ⋆
]]
DSC1630: INTRODUCTORY FI-
NANCIAL MATHEMATICS
May/June Examination 2026 — Comprehensive Revision Guide
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
Decision Sciences — Financial Mathematics
Exam Revision Guide
DSC1630
Module Code:
Introductory Financial Mathematics
Module Name:
May/June Examination 2026
Paper / Exam:
May/June 2023 -May/June 2025
Papers Covered:
30 MCQ, 100 Marks, 2 hrs 30 min
Format:
Work through every question. Understand the method, not just the answer.
Exam Revision Notes | DSC1630 | 2026
,DSC1630 | Introductory Financial Mathematics May/June Exam Revision
Key Formulae for DSC1630
Key Concept
Simple Interest: S = P (1 + rt) I = P rt
Simple Discount: P = S(1 − dt) where d = discount rate
mt
jm
Compound Interest: S = P 1 + m
Continuous Compounding: S = P ert
m
Effective Rate: ieff = 1 + jm
m
−1 ieff (cont) = er − 1
Nominal from Effective: jm = m (1 + ieff )1/m − 1
(1 + i)n − 1
Future Value of Ordinary Annuity: F = R ·
i
1 − (1 + i)−n
Present Value of Ordinary Annuity: P = R ·
i
Annuity Due (multiply by (1 + i)): Fdue = Ford · (1 + i)
R
Perpetuity: P =
i
C/2 1 − (1 + z)−n 100
Bond All-In Price: P = · + where z = j2 /2, f =
(1 + z)f z (1 + z)n+f
d/days-in-half-year
n
X Ct
NPV: N P V = Accept if N P V > 0
(1 + r)t
t=0
IRR: Rate at which N P V = 0
Page 2 of 22
,DSC1630 | Introductory Financial Mathematics May/June Exam Revision
PAPER A — MAY/JUNE 2025 EXAMINATION
30 questions · 100 marks · Duration: 2 hours 30 minutes · Programmable calculator permitted
Question 1 (2025) Simple Interest
Question: The amount of money you have to invest at a simple interest rate of 15% per
annum to earn R5 250 interest after three years is:
[1] R3 620.69 [2] R10 000.00 [3] R5 249.48 [4] R122 500.00 [5] R11 666.67
Answer: Correct answer: [5] R11 666.67
I
Formula: I = P rt, so P =
rt
5 250 5 250
P = = = R11 666.67
0.15 × 3 0.45
• r = 15% = 0.15, t = 3 years, I = R5 250
• Rearrange I = P rt to get P = I/(rt)
Exam Tip
In simple interest problems, interest I = P rt is not compounded. Always check
whether the question gives you I (interest only) or S (accumulated amount = P +
I). Here I is given directly.
Question 2 (2025) Simple Discount
Question: A bank’s simple discount rate is 12% per annum. You need to pay the bank
R5 000 in six months’ time. The amount of money that you will receive from the bank
now is:
[1] R4 700.00 [2] R4 716.98 [3] R4 724.56 [4] R5 300.00 [5] R5 319.15
Answer: Correct answer: [1] R4 700.00
Formula: P = S(1 − dt)
Page 3 of 22
, DSC1630 | Introductory Financial Mathematics May/June Exam Revision
P = 5 000 1 − 0.12 × 0.5 = 5 000 × 0.94 = R4 700.00
• S = R5 000 (future value / face value), d = 0.12, t = 6/12 = 0.5 years
• Simple discount deducts interest upfront from the future value
Watch Out
Simple discount and simple interest are different. With simple interest P = S/(1 +
rt), giving R4 716.98 — that is option [2], which is a common trap. Use P = S(1−
dt) for discount.
Question 3 (2025) Finding Simple Interest Rate
Question: Jacob invests R8 350 in an account that pays simple interest. After six years,
the accumulated sum is R12 859. The simple interest rate per year, rounded to two deci-
mal places, is:
[1] 0.75% [2] 45.09% [3] 1.08% [4] 9.00% [5] none of the above
Answer: Correct answer: [4] 9.00%
S/P − 1 12 859/8 350 − 1 1.54 − 1 0.54
S = P (1 + rt) =⇒ r = = = = = 0.09
t 6 6 6
r = 9.00% per year.
• Always isolate r: r = (S − P )/(P × t)
• r = (12 859 − 8 350)/(8 350 × 6) = 4 509/50 100 = 0.09
Question 4 (2025) Compound Interest — Accumulated Amount
Question: The accumulated amount that Mabe will receive after 38 months if she de-
posits R13 300 into an account where money is worth 11.35% per year compounded every
two months is:
[1] R14 117.08 [2] R15 690.19 [3] R18 080.24 [4] R18 865.83 [5] R18 988.31
Page 4 of 22
]]
DSC1630: INTRODUCTORY FI-
NANCIAL MATHEMATICS
May/June Examination 2026 — Comprehensive Revision Guide
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
Decision Sciences — Financial Mathematics
Exam Revision Guide
DSC1630
Module Code:
Introductory Financial Mathematics
Module Name:
May/June Examination 2026
Paper / Exam:
May/June 2023 -May/June 2025
Papers Covered:
30 MCQ, 100 Marks, 2 hrs 30 min
Format:
Work through every question. Understand the method, not just the answer.
Exam Revision Notes | DSC1630 | 2026
,DSC1630 | Introductory Financial Mathematics May/June Exam Revision
Key Formulae for DSC1630
Key Concept
Simple Interest: S = P (1 + rt) I = P rt
Simple Discount: P = S(1 − dt) where d = discount rate
mt
jm
Compound Interest: S = P 1 + m
Continuous Compounding: S = P ert
m
Effective Rate: ieff = 1 + jm
m
−1 ieff (cont) = er − 1
Nominal from Effective: jm = m (1 + ieff )1/m − 1
(1 + i)n − 1
Future Value of Ordinary Annuity: F = R ·
i
1 − (1 + i)−n
Present Value of Ordinary Annuity: P = R ·
i
Annuity Due (multiply by (1 + i)): Fdue = Ford · (1 + i)
R
Perpetuity: P =
i
C/2 1 − (1 + z)−n 100
Bond All-In Price: P = · + where z = j2 /2, f =
(1 + z)f z (1 + z)n+f
d/days-in-half-year
n
X Ct
NPV: N P V = Accept if N P V > 0
(1 + r)t
t=0
IRR: Rate at which N P V = 0
Page 2 of 22
,DSC1630 | Introductory Financial Mathematics May/June Exam Revision
PAPER A — MAY/JUNE 2025 EXAMINATION
30 questions · 100 marks · Duration: 2 hours 30 minutes · Programmable calculator permitted
Question 1 (2025) Simple Interest
Question: The amount of money you have to invest at a simple interest rate of 15% per
annum to earn R5 250 interest after three years is:
[1] R3 620.69 [2] R10 000.00 [3] R5 249.48 [4] R122 500.00 [5] R11 666.67
Answer: Correct answer: [5] R11 666.67
I
Formula: I = P rt, so P =
rt
5 250 5 250
P = = = R11 666.67
0.15 × 3 0.45
• r = 15% = 0.15, t = 3 years, I = R5 250
• Rearrange I = P rt to get P = I/(rt)
Exam Tip
In simple interest problems, interest I = P rt is not compounded. Always check
whether the question gives you I (interest only) or S (accumulated amount = P +
I). Here I is given directly.
Question 2 (2025) Simple Discount
Question: A bank’s simple discount rate is 12% per annum. You need to pay the bank
R5 000 in six months’ time. The amount of money that you will receive from the bank
now is:
[1] R4 700.00 [2] R4 716.98 [3] R4 724.56 [4] R5 300.00 [5] R5 319.15
Answer: Correct answer: [1] R4 700.00
Formula: P = S(1 − dt)
Page 3 of 22
, DSC1630 | Introductory Financial Mathematics May/June Exam Revision
P = 5 000 1 − 0.12 × 0.5 = 5 000 × 0.94 = R4 700.00
• S = R5 000 (future value / face value), d = 0.12, t = 6/12 = 0.5 years
• Simple discount deducts interest upfront from the future value
Watch Out
Simple discount and simple interest are different. With simple interest P = S/(1 +
rt), giving R4 716.98 — that is option [2], which is a common trap. Use P = S(1−
dt) for discount.
Question 3 (2025) Finding Simple Interest Rate
Question: Jacob invests R8 350 in an account that pays simple interest. After six years,
the accumulated sum is R12 859. The simple interest rate per year, rounded to two deci-
mal places, is:
[1] 0.75% [2] 45.09% [3] 1.08% [4] 9.00% [5] none of the above
Answer: Correct answer: [4] 9.00%
S/P − 1 12 859/8 350 − 1 1.54 − 1 0.54
S = P (1 + rt) =⇒ r = = = = = 0.09
t 6 6 6
r = 9.00% per year.
• Always isolate r: r = (S − P )/(P × t)
• r = (12 859 − 8 350)/(8 350 × 6) = 4 509/50 100 = 0.09
Question 4 (2025) Compound Interest — Accumulated Amount
Question: The accumulated amount that Mabe will receive after 38 months if she de-
posits R13 300 into an account where money is worth 11.35% per year compounded every
two months is:
[1] R14 117.08 [2] R15 690.19 [3] R18 080.24 [4] R18 865.83 [5] R18 988.31
Page 4 of 22
