DSC1630 ASSIGNMENT 3 SEMESTER 1. INTRODUCTION TO FINANCIAL MATHEMATICS.

DSC1630 ASSIGNMENT 3 SEMESTER 1. INTRODUCTION TO FINANCIAL MATHEMATICS.Question 1 Mabe borrowed an amount of money from his father. The loan will be paid back by means of payments of R25 000 each every second month for six years. An interest rate of 7,5% per year, compounded every two months, will be applicable. The amount of the loan is [1] R900 000,00. [2] R1 127 887,64. [3] R400 738,72. [4] R238 067,35. [5] R721 181,68. 3 Question 2 The opening balance of this fund is approximately [1] R474 536. [2] R157 895. [3] R1 105 351. [4] R631 579. [5] none of the above. 4 Question 3 James asks to reschedule the compensation in three payments, the first payment now, the second payment twice the size of the first payment four years from now, and the third payment three times the size of the first payment nine years from now. The Boxing Fund agrees on condition that the interest rate changes to 10,95% per year, compounded monthly. The amount to the nearest hundred rand that James can expect to receive four years from now is [1] R864 000. [2] R184 800. [3] R369 600. [4] R557 510. [5] none of the above. 5 6 7 Question 4 The present value of an annuity is R62 543,42. The time under consideration is 10 years and the applicable interest rate is 16% per year, compounded monthly. The future value of this annuity is [1] R625 434,20. [2] R581 913,00. [3] R306 521,61. [4] R1 333 517,61. [5] R162 612,89. 8