BNU1501/Ass 4/S2/2023

BNU1501

Basic Numeracy

Department of Decision Sciences

ASSIGNMENT 04

Semester 2 – 2023

Due Date: 15 September 2023

Please work through the following study material before answering the assignment questions:
Study material: Chapters 6 and 7 of the Study Guide

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Question 1
If a vertical and horizontal number line intersect perpendicularly, they form right angles (of
90◦) with each other and a co-ordinate system of axes is formed, the horizontal line is called:
[1] Quadrants
[2] y-axis
[3] Co-ordinates
[4] x-axis

Question 2
The point at which the two axes intersect (cross each other) is called:
[1] Centre
[2] Vertex
[3] Origin
[4] Starting point

Question 3
Two lines always intersect each other at
[1] two points
[2] one point
[3] three points
[4] do not intersect each other

Question 4
What is the gradient and the y-intercept for a straight line with the equation 𝑦𝑦 = −2𝑥𝑥 − 3?
[1] Slope = 2, y-intercept = 3
[2] Slope = 2, y-intercept = −3
[3] Slope = −2, y-intercept = −3
[4] Slope = 3, y-intercept = 2

Question 5
A straight line crosses the x-axis at (3, 0) and the y-axis at (0, 2). What is the y-intercept for
this line?
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[1] y-intercept = 2
[2] y-intercept = 0
[3] y-intercept = 6
[4] y-intercept = 3

Question 6
What will be the slope of the line given by 𝑎𝑎𝑎𝑎 + 𝑏𝑏𝑏𝑏 + 𝑐𝑐 = 0 ?
𝑏𝑏
[1] −
𝑎𝑎
𝑎𝑎
[2] −
𝑏𝑏
𝑎𝑎
[3]
𝑐𝑐
𝑐𝑐
[4] − 𝑎𝑎

Question 7
The straight line given by the equation 𝑥𝑥 = 11 is
[1] parallel to x-axis
[2] passing through the origin
[3] passing through the point (0,11)
[4] parallel to y-axis

Question 8

Which of the following straight lines equations is represented by the graph shown above?
[1] 𝑦𝑦 = −2𝑥𝑥 + 4
1
[2] 𝑦𝑦 = 2
𝑥𝑥 − 2
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[3] 𝑦𝑦 = − 2 𝑥𝑥 + 2

[4] 𝑦𝑦 = 2𝑥𝑥 − 4

Question 9
A man walks near a wall, such that the distance between him and the wall is 10 units. Consider
the wall to be the y-axis. The path travelled by the man is
[1] 𝑦𝑦 = 0
[2] 𝑦𝑦 = 10
[3] 𝑥𝑥 = 0
[4] 𝑥𝑥 = 10

Question 10
Which of the following coordinates does not satisfy the equation 𝑦𝑦 = −2𝑥𝑥 + 3?
[1] (−2; 1)
[2] (−1; 5)
[3] (1; 1)
[4] (2; −1)

Simple interest
Question 11
Sam borrowed some money from his friend at simple interest of 6% per annum. He returned
his friend R15 600. After how much time did Sam return the money if he borrowed R12 000?

[1] 8 years
[2] 2.5 years
[3] 5 years
[4] 3.5 year

Question 12
Khabazela paid R9 600 as interest on a loan he took 5 years ago at 16% rate of simple
interest. What was the amount he took as loan?

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[1] R12 000

[2] R16 400
[3] R 12 500
[4] R18 000

Compound interest
Question 13
Compute the compound interest on R16 000 for 2 years 10% per annum when compounded
half yearly.
[1] R18 600
[2] R17 640
[3] R18 640
[4] R17 600

Question 14
At what rate of compound interest per annum will a sum of R1 200 become R1 348.32 in 2
years?
[1] 6%
[2] 6.5%
[3] 7%
[4] 7.5%

Future value of an annuity

Question 15
A 5-year ordinary annuity has a present value of R1 000. If the interest rate is 8 percent, the
amount of each annuity payment is closest to which of the following?

[1] R231.91
[2] R250.44
[3] R181.62
[4] R184.08

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Question 16
Phila deposits R5 000 in an ordinary annuity at the end of each quarter in an account that
earns 6% interest compounded quarterly. What is the future value of Phila’s annuity in 3
years?
[1] R65 206.05
[2] R56 206.05
[3] R196 680.32
[4] R65 680.32

Present value of an annuity

Question 17
Christo wants to buy a small wine farm worth R8 500 000. He plans to sell his current home
for R3 400 000 which he will use as a deposit for the purchase of the farm. He secures a loan
with a bank with a repayment period of 10 years and an interest rate of 9,5% compounded
monthly. Calculate his monthly repayments.
[1] R484 330,48
[2] R532 492,48
[3] R65 992,75
[4] R484 509,93

Question 18
Anele takes out a student loan for his first year of BCom. The loan agreement states that the
repayment period is equal to 1,5 years for every year of financial assistance granted and that
the loan is subject to an interest rate of 10,5% p.a. compounded monthly. If Anele pays a
monthly instalment of R1 446,91, calculate the loan amount.

[1] R28 774,75

[2] R28 665,06
[3] R24 574,15
[4] R24 000,14

Amortisation
Question 19
An amortization table ________.

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[1] breaks each payment into the amount that goes toward interest and the amount that goes
toward the principal
[2] is a special table used in a break room to make people feel equitable
[3] separates time value of money tables into present value and future value
[4] separates time value of money tables into single amounts and streams of cash

Question 20
You are considering borrowing R10 000 for 3 years at an annual interest rate of 6%. The loan
agreement calls for 3 equal payments, to be paid at the end of each of the next 3 years.
(Payments include both principal and interest.) The annual payment that will fully pay off
(amortize) the loan is closest to
[1] R2 890
[2] R2 674
[3] R3 741
[4] R4 020