Introductory Financial Mathematics DSC1630 Solution Assignment 01
Assignment 01 – Detailed Solution
Question 1
A sum of R1 000 is due in five months’ time from now, at a simple interest rate of 12% per annum.
The present value of the sum is
[1] R952,38.
[2] R567,43.
[3] R1 050,00.
[4] R...
Important Information:
This tutorial letter contains the solutions of
Assignment 01.
, lOMoARcPSD|36630272
DSC1630/SOL01
Dear student
The solutions to the questions of the compulsory Assignment 01 are included in this document. Study
them when you prepare for the examination. We have added comments on how to approach each
problem.
You will also find the key operations for the SHARP and the HP 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. Please download the calculator
notes/booklet from myUnisa under Additional Resources.
REMEMBER TO CLEAR ALL DATA FROM THE MEMORY BEFORE YOU ATTEMPT ANY
CALCULATIONS.
• SHARP EL-738 and newer versions users: Press 2ndF M-CLR 0 0 if you wish to clear
all the memories and 2ndF CA if you want to clear only the financial keys.
• HP10BII and 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.
You are also welcome to contact us by e-mail and telephone at present if you need help regarding
the study material. Our contact hours are 07:00 until 16:00 - Monday till Friday.
Our contact details:
Lastly, everything of the best with Assignment 02. Please work through the Self-evaluation exercises
on myUnisa under Additional Resources before you attempt to answer the assignments.
Kind regards,
Mrs Adéle Immelman and Ms Gomo Moagi
2
, lOMoARcPSD|36630272
DSC1630/SOL01
1 Solution Summary
Please note that the options of the quiz on myUnisa were randomised. This might lead to different
correct options. Compare your answer to the questions final answer.
The following is a summary of the correct answers:
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 time line 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
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