In May 2025
Search & Filtering
Thando invested R10 000 in a special savings account on 15 May at an interest rate of 15% per year, compounded every three months for seven months. Interest is calculated on 1 January, 1 April, 1 July and 1 October of every year.
If fractional compounding is used for the full term of seven months, the total amount of interest received is
[1] R892,79.
[2] R898,43.
[3] R901,73.
[4] R894,04.
[5] none of the above
Thando invested R10 000 in a special savings account on 15 May at an interest rate of 15% per year, compounded every three months for seven months. Interest is calculated on 1 January, 1 April, 1 July and 1 October of every year.
If simple interest is used for the odd periods and compound interest for the rest of the term, ,the amount of interest received by Thando after seven months is
[1] R901,35.
[2] R1 644,57.
[3] R896,95.
[4] R665,54.
[5] none of the above.
The price of a company's share dropped by 3.00% by the end of the first year, down to $42.25. During the second year the price of the share dropped by $1.69.
a. What was the price of the share at the beginning of the first year?
Round to the nearest cent
b. What was the price of the share at the end of the second year?
Round to the nearest cent
c. What was the percent change in the price of the share over the two years?
%
Mzomuhle takes out a personal loan of R439200,00 to help finance the building of his holiday house.The terms of his loan specify equal three-monthly repayments over five years, with13,2% interest per annum, compounded quarterly.The first payment is made three months after the loan was taken out. First find the size of the three-monthly payments.Then considering the amortisation schedule,find the total interest charged over the first year of repayments.
Assume covariance between returns R5 of Asset 5 and returns R1 of Asset 1 is 0.018, while correlation between those returns is smaller than 0.9. Understand in what case Asset 2 dominates Asset 5.
can derive standard deviation of the returns of Asset 5 using the relation between covariance, ( correlation and standard deviation / variance and mean / correlation and mean ) namely correlation equals the covariance between both returns ( divided by product of their standard deviations / multiplied by product of their standard deviations). We rearrange identity to obtain standard deviation of returns of Asset 5. We find that it is (larger than / equal to / smaller than) standard deviation of the returns of Asset 2. Thus Asset 2 dominates Asset 3 if (its expected return is larger than or equal to that of Asset 5 / its standard deviation is larger than or equal to that of Asset 5 / its expected return is smaller than or equal to that of Asset 5/its standard deviation is smaller than or equal to that of Asset 5).
first one has expected return μ1 = 20% and standard deviation of return equal to σ1 = 10%. second has expected return μ2 = 40% and standard deviation of return equal to σ2 =20%. Next we want to determine the range of μ4 and σ4 such that Asset 4 dominates Asset 2, but does not dominate Asset 1. After careful calculation, and checking our result by drawing a graph .we know that Asset 4 dominates Asset 2 and not Asset 1 if and only if the expected return of Asset 4 is __________
(larger than or equal to the expected return of Asset 2./smaller than or equal to the expected return of Asset 2./smaller than the expected return of Asset 2./larger than the expected return of Asset 2./larger than that of Asset 1 and smaller than that of Asset 2.
/larger than or equal to that of Asset 1 and smaller or equal to that of Asset 2./larger than or equal to the expected return of Asset 1./smaller than or equal to the expected return of Asset 1./larger than the expected return of Asset 1.)
EXERCISE 2
The following three exercises do belong together. Assume that we have five assets. The first one has expected return μ1 = 20% and standard deviation of return equal to σ1 = 10%. The second has expected return μ2 = 40% and standard deviation of return equal to σ2 =20%.
Assume that the third asset has expected return μ3 = 10%. What is the range of the standard deviation σ3 of the third asset so that the three assets form an efficient set?
Select one:
a.
The standard deviation of the third asset needs to be below 10%.
b.
The range is the empty set, as it is not possible that all three assets are efficient in this case.
c.
The standard deviation of the third asset needs to be above 10%.
d.
The standard deviation of the third asset needs to be below 20%.
e.
The standard deviation of the third asset needs to be above 20%.
f.
The standard deviation of the third asset needs to be between 10% and 20%.
<h3 class="LC20lb DKV0Md" style="font-size: 20px; font-weight: normal; margin: 0px 0px 3px; padding: 5px 0px 0px; display: inline-block; line-height: 1.3;">Answer in Financial Math for PK NDINI #182650</h3>
Round your answer to the nearest year. Find the number of years it would take for R748 to increase by 72% if it is invested at an interest rate of 7,9% per annum, compounded semi-annually
Calculate the extra compound interest received when R18 400 invested at 13,2% per annum for 11,5 years interest rate paid annually is invested at the same rate but with interest paid monthly
