NAME: ROLIZE VAN TONDER
STUDENT NUMBER: 63238233
MODULE CODE: MAE203P
ASSIGNMENT: 02
UNIQUE NUMBER: 840117
DUE DATE: 21 JULY 2021
1
, QUESTION 1
1.1 State whether each of the following statements is true or false. If the
statement is false, replace the statement with a true statement.
1.1.1 The current ratio of =1 means that the company has exactly
enough money to pay its debts.
True.
𝑷−𝟏
1.1.2 From the formula 𝑨 = 𝑷(𝟏 + 𝒊)𝒏 , one can deduce that 𝒊 = √( ).
𝑨
False.
𝐴 = 𝑃(1 + 𝑖)𝑛
𝐴
n√ = n√(1 + 𝑖)n
𝑃
𝐴
n√ =1+𝑖
𝑃
𝐴
n√ 𝑃 – 1 = 𝑖.
1.1.3 Simple interest is calculated not only on the original amount
borrowed but also on the interest that has accrued.
False. Compound interest is calculated not only on the original amount
borrowed, but also on the interest that has accrued. Simple interest is
calculated only on the original amount, and not on the interest earned.
1.1.4 Variable expenses are approximately the same every month.
False. Fixed expenses are approximately the same every month.
Variable expenses occur regularly but the amounts will differ every
month.
1.1.5 Interest is generally paid to a person who is engaged in buying or
selling goods for another person.
False. Commission is generally paid to a person who is engaged in
buying or selling goods for another person. Interest is paid when
money is lent, borrowed, or invested, and it is paid to the lender or
borrower.
𝑨+𝑷
1.1.6 From the formula 𝑨 = 𝑷(𝟏 + 𝒊𝒏), one can deduce that 𝑨 = .
𝑷𝒊
False. From the formula 𝐴 = 𝑃(1 + 𝑖𝑛), one can deduce that
𝐴 = 𝑃 + 𝑃𝑖. 𝑃𝑛.
2
STUDENT NUMBER: 63238233
MODULE CODE: MAE203P
ASSIGNMENT: 02
UNIQUE NUMBER: 840117
DUE DATE: 21 JULY 2021
1
, QUESTION 1
1.1 State whether each of the following statements is true or false. If the
statement is false, replace the statement with a true statement.
1.1.1 The current ratio of =1 means that the company has exactly
enough money to pay its debts.
True.
𝑷−𝟏
1.1.2 From the formula 𝑨 = 𝑷(𝟏 + 𝒊)𝒏 , one can deduce that 𝒊 = √( ).
𝑨
False.
𝐴 = 𝑃(1 + 𝑖)𝑛
𝐴
n√ = n√(1 + 𝑖)n
𝑃
𝐴
n√ =1+𝑖
𝑃
𝐴
n√ 𝑃 – 1 = 𝑖.
1.1.3 Simple interest is calculated not only on the original amount
borrowed but also on the interest that has accrued.
False. Compound interest is calculated not only on the original amount
borrowed, but also on the interest that has accrued. Simple interest is
calculated only on the original amount, and not on the interest earned.
1.1.4 Variable expenses are approximately the same every month.
False. Fixed expenses are approximately the same every month.
Variable expenses occur regularly but the amounts will differ every
month.
1.1.5 Interest is generally paid to a person who is engaged in buying or
selling goods for another person.
False. Commission is generally paid to a person who is engaged in
buying or selling goods for another person. Interest is paid when
money is lent, borrowed, or invested, and it is paid to the lender or
borrower.
𝑨+𝑷
1.1.6 From the formula 𝑨 = 𝑷(𝟏 + 𝒊𝒏), one can deduce that 𝑨 = .
𝑷𝒊
False. From the formula 𝐴 = 𝑃(1 + 𝑖𝑛), one can deduce that
𝐴 = 𝑃 + 𝑃𝑖. 𝑃𝑛.
2
