T ប ୪ 29 DSC1630/ASS02/1 1 Assignment 02 -Questions Question 1 Determine the equivalent continuous compounding rate (to two decimal places) of an interest rate of 17,5% per year, compounded quarterly. [4] Question 2 If R35 000 accumulates to R48 320 at a continuous compounding rate of 8,6% per year, determine the term under consideration in years to two decimal places. [5] Question 3 Calculate the accumulated amount after eight years of weekly payments of R1 900 each into an account earning 9,7% interest per year, compounded weekly. Draw an appropriate timeline showing all the given values. [5] Question 4 Nolwazi wants to buy a new state of the art computer for R35 000. She decides to save by depositing an amount of R500 every month into an account earning 11,32% interest per year, compounded monthly. How many years (accurate to one decimal place) will it take Nolwazi to have R35 000 available? Draw an appropriate timeline showing all the given values. [6] Question 5 An investment account pays interest at the rate of 5% per year, compounded semi-annually. What is the amount that should be deposited now so that R250 can be withdrawn at the end of every six months for the next 10 years? Draw an appropriate timeline showing all the given values. [5] TOTAL MARKS: 25 ** 55 +3 2. 20 Comment Highlight Draw T FOND Text Fill & Sign More tools 4

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA3: Time Value Of Money
Section: Chapter Questions
Problem 11E
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୪
29
DSC1630/ASS02/1
1 Assignment 02 -Questions
Question 1
Determine the equivalent continuous compounding rate (to two decimal places) of an interest rate of 17,5%
per year, compounded quarterly.
[4]
Question 2
If R35 000 accumulates to R48 320 at a continuous compounding rate of 8,6% per year, determine the term
under consideration in years to two decimal places.
[5]
Question 3
Calculate the accumulated amount after eight years of weekly payments of R1 900 each into an account
earning 9,7% interest per year, compounded weekly.
Draw an appropriate timeline showing all the given values.
[5]
Question 4
Nolwazi wants to buy a new state of the art computer for R35 000. She decides to save by depositing an
amount of R500 every month into an account earning 11,32% interest per year, compounded monthly. How
many years (accurate to one decimal place) will it take Nolwazi to have R35 000 available?
Draw an appropriate timeline showing all the given values.
[6]
Question 5
An investment account pays interest at the rate of 5% per year, compounded semi-annually. What is the
amount that should be deposited now so that R250 can be withdrawn at the end of every six months for the
next 10 years?
Draw an appropriate timeline showing all the given values.
[5]
TOTAL MARKS: 25
**
55
+3
2. 20
Comment Highlight Draw
T
FOND
Text
Fill & Sign
More tools
4
Transcribed Image Text:T ប ୪ 29 DSC1630/ASS02/1 1 Assignment 02 -Questions Question 1 Determine the equivalent continuous compounding rate (to two decimal places) of an interest rate of 17,5% per year, compounded quarterly. [4] Question 2 If R35 000 accumulates to R48 320 at a continuous compounding rate of 8,6% per year, determine the term under consideration in years to two decimal places. [5] Question 3 Calculate the accumulated amount after eight years of weekly payments of R1 900 each into an account earning 9,7% interest per year, compounded weekly. Draw an appropriate timeline showing all the given values. [5] Question 4 Nolwazi wants to buy a new state of the art computer for R35 000. She decides to save by depositing an amount of R500 every month into an account earning 11,32% interest per year, compounded monthly. How many years (accurate to one decimal place) will it take Nolwazi to have R35 000 available? Draw an appropriate timeline showing all the given values. [6] Question 5 An investment account pays interest at the rate of 5% per year, compounded semi-annually. What is the amount that should be deposited now so that R250 can be withdrawn at the end of every six months for the next 10 years? Draw an appropriate timeline showing all the given values. [5] TOTAL MARKS: 25 ** 55 +3 2. 20 Comment Highlight Draw T FOND Text Fill & Sign More tools 4
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