Business Calculation Assignment 03 - Simple & Compound Interest Study Guide

Assignment 03 for Semester 01 (compulsory) Unique
Number 639880
Preview of Question 1

If you invest R5 000 at a simple interest rate of 9% per annum for ten years, what is the total
interest that you receive?

[1] R4 500
[2] R2 280
[3] R450
[4] R5 450

Answer:

Using the Sharp EL-738F Calculator:


OR:



NB: THIS DOCUMENT SHOWS MY MANUAL WORKINGS AS WELL AS
MY WORKINGS ON A SHARP EL-738F CALCULATOR IN THE
FOLLOWING FORMAT:

,Question 1

If you invest R5 000 at a simple interest rate of 9% per annum for ten years, what is the total
interest that you receive?

[1] R4 500
[2] R2 280
[3] R450
[4] R5 450

Answer:

Using the Sharp EL-738F Calculator:


OR:



Question 2

A company invests R220 000 for twelve years in a venture
that pays 10% interest per year compounded quarterly. How much will the total amount of
investment be at maturity?

[1] R532 656,83
[2] R719 727,70
[3] R202 500,00
[4] R281 070,77
Answer:
Using the Sharp EL-738F Calculator:

, OR:




= 719 727.70
Question 3

How much should you invest now at 9% interest rate per year if you wish to have the total
amount of R450 000 accumulated after six years, compounded monthly?

[1] R223 544,89
[2] R31 500,36
[3] R262 765,64
[4] R189 362,23

Answer:

Using the Sharp EL-738F Calculator: