WELCOME TO THIS PAGE INTENDED FOR STUDENTS AT THE UNIVERSITY OF THE WESTERN CAPE REGISTERED IN 2010 FOR THE MODULE:
QSF 132
T1 W3 L1
CALCULATOR SKILLS
6.2
FORMULAE: FOR NO 12
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Accumulated Value or Future Value FV after period n, where PV is the present value (Compound Interest) |
AF =
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Accumulation Factor (AF) |
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Present Value PV (Compound Interest) |
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Present Value of an Annuity for a period n:
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Future Value of an Annuity for a period n:
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WORD SUMS : WHAT A COURSE IN QUANTITATIVE SKILLS DOES NOT/CANNOT TEACH.
A large supermarket displays three types of toilet rolls in the same large basket for R2.49, R3.99 and R4.99 each.
A. Without using your calculator, determine
B. Discuss the usefulness of a diagram in solving word sums.
C. Discuss the marketing strategy, and what a course in Quantitative Skills does not/cannot teach.
12. An insurance agent offers services to clients who are concerned about their personal financial planning for retirement. When explaining the advantages of an early start to investing, she uses the example of 25-year old Jabu who started to save R2 000 a year for 10 years (and made no further contributions after age 34). Jabu earned more than Jane who waited 10 years, and then saved R2 000 a year from the age of 35 until her retirement at age 65 (a total of 30 yearly payments!). Find the net earnings (compound-amount minus contributions) of Jabu and Jane at age 65. An annual interest rate of 7,5% was applicable and the deposits were made at the beginning of each year.
JABU:
R28 294.17499;
R247 714.2342
JANE:
R206 798.805
DIAGRAMMATIC REPRESENTATION OF WORD SUMS (STORY SUMS)
REASON:
PURPOSE:
WHAT IT IS NOT
PRINCIPLES/ASSUMPTIONS
Example 12
Only once the CORRECT formula is applied to the individual cases, the FV may be compared:
JABU WILL HAVE AT RETIREMENT =
JANE WILL HAVE AT RETIREMENT =
THEREFORE .
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