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An annuity is a sequence of equal or same amount payments at equal time intervals.
[1] True
[2] False
There are three types of value annuities
[1] True
[2] False
Suppose Bert deposited an amount of R600 at the end of every year into an account earning 11,5% interest per year for 3 years. Determine the accumulated amount at the end of year 3.
[1]. 730
[2]. 1320
[3] 745, 94
[4] 134, 23
The future value of an annuity is the balance in an account before a series of payments have been made at equal time intervals.
[1] True
[2] False
We use the _____________to determine the monthly payment and the outstanding principal.
[1] Annuity
[2] Interest
[3] Future value formula
[4] present value formula
What would be the interest due at the end of year 1 if the principal debt was R5000 and the interest rate is 15%
[1] 75 000
[2] 7500
[3] 750
[4] 75, 00
Suppose the price of commodity X rises from N10 per kg to N15 per kg and the quantity demanded increases from 300 kg to 100 kg. Find the price elasticity of demand.
A corporate bond shows a trading price of $124.65; a coupon rate of 6.245; a maturity date of February 15, 2034; and a par value of $1,000. What will you pay, and what will the yield be?
If the demand and supply functions in a competitive market are (5marks) Qd = 50 − 0.2P Qs = −10 + 0.3P and the rate of adjustment of price when the market is out of equilibrium is dP /dt = 0.4(Qd − Qs) derive and solve the relevant difference equation to get a function for P in terms of t given that price is 100 in time period 0. Comment on the stability of this market.
If demand became zero with a slight rise in the price , what would you call such a demand?
