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    MA112 Assign 1 Question

    Uploaded by

    Gikamo Gasing
    This document provides instructions for Assignment 1 of the Quantitative Methods II course at the Department of Mathematics and Computer Science. It lists 6 questions worth various point values totaling 100 points. Students must answer all questions, but only 4 will be marked. The assignment is due before 12:00 noon on Friday August 10, 2018 and must be submitted to the main office to receive marks. It provides sample questions that involve calculations related to inflation, compound interest, present values, loan repayment schedules, and more.

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    Download as PDF, TXT or read online from Scribd

    MA112 Assign 1 Question

    Uploaded by

    Gikamo Gasing
    99 views1 page
    This document provides instructions for Assignment 1 of the Quantitative Methods II course at the Department of Mathematics and Computer Science. It lists 6 questions worth various point values totaling 100 points. Students must answer all questions, but only 4 will be marked. The assignment is due before 12:00 noon on Friday August 10, 2018 and must be submitted to the main office to receive marks. It provides sample questions that involve calculations related to inflation, compound interest, present values, loan repayment schedules, and more.

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    This document provides instructions for Assignment 1 of the Quantitative Methods II course at the Department of Mathematics and Computer Science. It lists 6 questions worth various point values totaling 100 points. Students must answer all questions, but only 4 will be marked. The assignment is due before 12:00 noon on Friday August 10, 2018 and must be submitted to the main office to receive marks. It provides sample questions that involve calculations related to inflation, compound interest, present values, loan repayment schedules, and more.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    99 views1 page

    MA112 Assign 1 Question

    Uploaded by

    Gikamo Gasing
    This document provides instructions for Assignment 1 of the Quantitative Methods II course at the Department of Mathematics and Computer Science. It lists 6 questions worth various point values totaling 100 points. Students must answer all questions, but only 4 will be marked. The assignment is due before 12:00 noon on Friday August 10, 2018 and must be submitted to the main office to receive marks. It provides sample questions that involve calculations related to inflation, compound interest, present values, loan repayment schedules, and more.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Department of Mathematics and Computer Science

    Course: MA112 Quantitative Methods II


    Assignment 1, Semester 2, 2018, Due: Friday 10 August 2018 before 12:00 noon

    Name:_________________________________ID:______________Group:___________
    Instructions: There are six questions for this task. You are required to answer all
    questions but four selected questions will be marked. Completed assignment must be
    returned to Maths and Computer Science Department main office before 12 noon.
    Assignment returned directly to tutor/lecturer or returned after 12 noon will not be marked.

    Question 1 [5 Marks]
    The price of a new motor car increases in line with inflation. If over the years 2003, 2004,
    2005 and 2006 the indices of inflation were 114, 108, 110, and 107.3, and a new 4WD
    single cab Ute was priced at K55700 at the beginning of 2003, find the expected price of a
    similar new vehicle at the beginning of 2007.

    Question 2 [5  5  10 Marks]
    K95 is invested into an account at the end of every 4 months for 2 years and 8 months at
    15% p.a. compounded every 4 months.
    a) Calculate how much you would have in this account at the end of this period?
    b) Calculate the present value?

    Question 3 [5 Marks]
    What lump sum would you need to invest at 7.5% p.a. compounded annually if K250 is
    invested into an account at the beginning of each year for a period of 5 years?

    Question 4 [5  5  10 Marks]
    Brian Bell & Co. is selling micro-oven for K4000 by cash. If this item is purchased on an
    installments basis, the method of repayment is to deposit K500 followed by equal semi-
    annually repayments of K900 for three years.
    a) Calculate the flat rate of interest charged if this item is bought on an installments
    basis.
    b) Calculate the total amount paid at the end of 3 years if this item is bought on
    installments basis.

    Question 5 [5  5  5  5  20 Marks]
    At a reducing balance interest rate of 15% p.a. compounded monthly, K2 500 is borrowed.
    The method of loan repayment is to make equal monthly repayments of K300.
    a) How long would it take to completely pay off the loan?
    b) Construct a (full) loan repayment schedule.
    c) Calculate the amount paid off in the first 5 periods.
    d) Calculate the balance of loan owing at the end of the 7 th month.

    Question 6 [5  5  10 Marks]
    Mr. Bean borrows K9000 to purchase a duplex. He is required to repay the loan in equal
    monthly installments over a five-year period, interest being 9.5% p.a. compounded
    monthly at a reducing balance loan model.
    a) What are his monthly repayments?
    b) What termination payment is required to terminate the loan after 2 years?

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