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Numeracy Skills for Business Decisions

   

Added on  2020-06-04

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Numeracy 2
Numeracy Skills for Business Decisions_1

TABLE OF CONTENTSSECTION 1......................................................................................................................................1Q3 Interest calculations..........................................................................................................1Q4 Compound interest ...........................................................................................................1Q5 Algebra.............................................................................................................................2Q6 NPV..................................................................................................................................3Q7 Graphs...............................................................................................................................3Q8 Probability of playing cards..............................................................................................4SECTION 2......................................................................................................................................5TASK 1 ..................................................................................................................................5Two real life examples...........................................................................................................5TASK 3...................................................................................................................................7Reflective................................................................................................................................7
Numeracy Skills for Business Decisions_2

SECTION 1Q3 Interest calculationsA) Simple interest- I = PRT= 55000 * 4/100 * 3 = 6600B) Compound interest- B = 55000 * (1 + 0.04 / 12)= 4766.67C) Semi-annually compound interest- B = 55000 * (1 + 0.04 / 6)= 9533.34D) Quarterly compound interest - B = 55000 * (1 + 0.04 / 0.25) / 12= 5316.67Q4 Compound interest A) Annual compound interest-= 160000 * (1 + 0.04 / 12)= 13866.67B) Rule 72= 72 / 4/1= 1.5 years to double the investment at 4 % annual interest rateC) Bank savings Initial deposit = 3500After, 10 years = 4266.50= 4266.50 / 3500 ^ 1/10 = 1 + r= 1.29 ^ 1/10 = 1 + r= 0.129 - 1 = rr = 1. 29 % interest rate 1
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