DSC1630/SOL01/S1/2019
Solution Assignment 01
Introductory Financial Mathematics
DSC1630
Semester 1 - 2019
Department of Decision Sciences
Important Information:
This tutorial letter contains the solutions of
Assignment 01.
, DSC1630/SOL01/S1
Dear student
The solutions to the questions of the compulsory Assignment 01 are included in this tutorial letter.
Study them when you prepare for the examination. I have added comments on how to approach
each problem.
Please download the Notes on the calculator from myUnisa under Additional Resources.
You will also find the key operations for the SHARP EL-738 and the HP10BII calculators as well as
newer versions at the end of each answer. I hope it will help you to understand the workings of your
calculator. Just remember that these key operations are not the only method, these are
just examples. You can use any method as long as you get the same answer.
REMEMBER TO CLEAR ALL DATA FROM THE MEMORY BEFORE YOU ATTEMPT ANY
CALCULATIONS.
• SHARP EL-738 or never versions users: Press 2ndF M-CLR 0 0 if you wish to clear all
the memories and 2ndF CA if you just want to clear only the financial keys.
• HP10BII or newer versions users: Press C ALL
Note: the final answer displayed on your calculator depends on
how many decimals your calculator’s display is set to. Set it to 6 or
more decimals and only round off the final answer to the required
number of decimals as given in the options of the answers. Use all
the decimals throughout your calculations and just round off your
final answer.
Remember to please contact me via email, telephone or appointment if you need help regarding the
study material. Please note that only students with appointments will be assisted. My
contact details and contact hours are:
Physical address: Theo van Wijk - Laboratory Building, Room 1-6, Preller street, Muckleneuk,
Pretoria, (See map on myUnisa, under Announcements).
Tel: +27 12 4334691
E-mail:
08:00 until 13:30 - Monday till Friday: Appointments and Telephone
13:30 until 16:00 - Monday till Thursday: Telephone only
Lastly everything of the best with Assignment 02. Please work through the self-evaluation exercises
in Tutorial letter 101 before you attempt to answer the assignments.
Kind regards,
Mrs Adéle Immelman
NOTE: Please consult myUnisa on a regular basis for additional notes and announce-
ments as well as the release of solutions.
2
, DSC1630/SOL01/S1
1 Solution Summary
The following is a summary of the correct answers:
Q1 Option 1
Q2 Option 1
Q3 Option 4
Q4 Option 3
Q5 Option 2
Q6 Option 4
Q7 Option 4
Q8 Option 2
Q9 Option 4
Q 10 Option 2
Q 11 Option 4
Q 12 Option 1
Q 13 Option 2
Q 14 Option 3
Q 15 Option 3
2 How to approach a question
Below are a few hints to consider when approaching a problem.
1. Read through the question.
2. Try to identify the type of problem asked. Identifying words, for example, the type of interest
rate, or payment methods used, will help you to decide which formula to use.
3. Draw a timeline of the situation, where applicable.
4. Write down the formula.
5. Go back to the question and identify the given values and substitute them into the formula.
6. Manipulate the formula if necessary.
7. Use your calculator to solve the unknown.
Some solutions are supplied in this format to give you a better idea of the procedure of answering
the questions.
3
, DSC1630/SOL01/S1
3 Assignment 01 – Detailed Solution
Question 1
You have invested R1 500 in an account earning 6,57% per annum, simple interest. The balance in
the account 16 months later is
[1] R1 631,40.
[2] R1 632,82.
[3] R1 636,94.
[4] R1 644,02.
[5] R2 814,00.
Question answered using the “how to approach a question” style.
Step 1: Read through the question and identify the type of problem:
Identification term
You have invested R1 500 in an account earning 6,57% simple interest. The balance in the account
16 months later is
Step 2: Draw a timeline:
The situation can be represented by a timeline as:
R1 500 ?
6,57%
Now 16 months
Step 3: Write down the formula:
This is a simple interest rate calculation as the words simple interest are found in the question. The
formulas that you can use for simple interest calculations are
S = P (1 + rt) and I = P rt.
4
Solution Assignment 01
Introductory Financial Mathematics
DSC1630
Semester 1 - 2019
Department of Decision Sciences
Important Information:
This tutorial letter contains the solutions of
Assignment 01.
, DSC1630/SOL01/S1
Dear student
The solutions to the questions of the compulsory Assignment 01 are included in this tutorial letter.
Study them when you prepare for the examination. I have added comments on how to approach
each problem.
Please download the Notes on the calculator from myUnisa under Additional Resources.
You will also find the key operations for the SHARP EL-738 and the HP10BII calculators as well as
newer versions at the end of each answer. I hope it will help you to understand the workings of your
calculator. Just remember that these key operations are not the only method, these are
just examples. You can use any method as long as you get the same answer.
REMEMBER TO CLEAR ALL DATA FROM THE MEMORY BEFORE YOU ATTEMPT ANY
CALCULATIONS.
• SHARP EL-738 or never versions users: Press 2ndF M-CLR 0 0 if you wish to clear all
the memories and 2ndF CA if you just want to clear only the financial keys.
• HP10BII or newer versions users: Press C ALL
Note: the final answer displayed on your calculator depends on
how many decimals your calculator’s display is set to. Set it to 6 or
more decimals and only round off the final answer to the required
number of decimals as given in the options of the answers. Use all
the decimals throughout your calculations and just round off your
final answer.
Remember to please contact me via email, telephone or appointment if you need help regarding the
study material. Please note that only students with appointments will be assisted. My
contact details and contact hours are:
Physical address: Theo van Wijk - Laboratory Building, Room 1-6, Preller street, Muckleneuk,
Pretoria, (See map on myUnisa, under Announcements).
Tel: +27 12 4334691
E-mail:
08:00 until 13:30 - Monday till Friday: Appointments and Telephone
13:30 until 16:00 - Monday till Thursday: Telephone only
Lastly everything of the best with Assignment 02. Please work through the self-evaluation exercises
in Tutorial letter 101 before you attempt to answer the assignments.
Kind regards,
Mrs Adéle Immelman
NOTE: Please consult myUnisa on a regular basis for additional notes and announce-
ments as well as the release of solutions.
2
, DSC1630/SOL01/S1
1 Solution Summary
The following is a summary of the correct answers:
Q1 Option 1
Q2 Option 1
Q3 Option 4
Q4 Option 3
Q5 Option 2
Q6 Option 4
Q7 Option 4
Q8 Option 2
Q9 Option 4
Q 10 Option 2
Q 11 Option 4
Q 12 Option 1
Q 13 Option 2
Q 14 Option 3
Q 15 Option 3
2 How to approach a question
Below are a few hints to consider when approaching a problem.
1. Read through the question.
2. Try to identify the type of problem asked. Identifying words, for example, the type of interest
rate, or payment methods used, will help you to decide which formula to use.
3. Draw a timeline of the situation, where applicable.
4. Write down the formula.
5. Go back to the question and identify the given values and substitute them into the formula.
6. Manipulate the formula if necessary.
7. Use your calculator to solve the unknown.
Some solutions are supplied in this format to give you a better idea of the procedure of answering
the questions.
3
, DSC1630/SOL01/S1
3 Assignment 01 – Detailed Solution
Question 1
You have invested R1 500 in an account earning 6,57% per annum, simple interest. The balance in
the account 16 months later is
[1] R1 631,40.
[2] R1 632,82.
[3] R1 636,94.
[4] R1 644,02.
[5] R2 814,00.
Question answered using the “how to approach a question” style.
Step 1: Read through the question and identify the type of problem:
Identification term
You have invested R1 500 in an account earning 6,57% simple interest. The balance in the account
16 months later is
Step 2: Draw a timeline:
The situation can be represented by a timeline as:
R1 500 ?
6,57%
Now 16 months
Step 3: Write down the formula:
This is a simple interest rate calculation as the words simple interest are found in the question. The
formulas that you can use for simple interest calculations are
S = P (1 + rt) and I = P rt.
4
