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Financial Mathematics 1 EXAMS ISTAMA

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34 views1 page

Financial Mathematics 1 EXAMS ISTAMA

Uploaded by

tehgideon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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HND PROGRAM

NATURE OF EXAMS: END OF FIRST


SEMESTER EXAMINATION
Department: BUSINESS Option: ALL LEVEL 1 BUSINESS
Course Title: FINANCIAL MATHEMATICS 1 Credit value:
Duration: 08H00 -10H00 Date: Venue: Examination Hall
Course Instructor KUM Boris KPWE

INSTRUCTIONS: Answer all questions neatly showing all working at each stage. Each question is
7Marks. Non programmable calculators and financial formula booklets are authorised.

1. In how many years will it take a capital invested at compound interest to double when Compounding is
done at 5% per annum?
2. A Businessman owes 2,300,333F and has the following choices:
 1st Choice: immediate reimbursement
 2nd Choice: Payment of 2,800,000F in 2years
 3rd Choice: Payment of 900,000F in 1year, 900,000F in 18months and 900,000F in 2years
What is the best choice to settle the debt knowing that compounding is done at an annual rate of 12%?
3. At what rate is it necessary to invest a capital so that it will increase by 40% in 4years?
4. Two capitals whose difference is 246,800 FRS are invested over a period of 288 days and 208 days
respectively, the simple interest of the former is 1,060 F more than that of the latter. The fixed divisors
are 14,400 and 8,000 respectively. Calculate the two capitals
5. Three capitals jointly yielded an annual interest of 13,680 frs. Their sum is 324,000 frs. The third capital
is twice the value of the second. The simple interests are proportional to the numbers 4.8, 3.2, and 7.2.
The interest rates of the first two capitals are the same.
Required:
i. Determine the three capitals
ii. Calculate the three interest rates
iii. Calculate the value of the interest yielded by the three capitals
6. A capital of 360,000 FRS is invested at 7% for t days and another capital of 240,000 frs is invested at 9%
for t days. Determine the time at which the difference of simple interest will amount to 200 FRS.
7. A bill of 240,000 FRS was discounted at the rate of 7.5% in 72days. given that the domiciliation charge is
¼% and endorsement commission is 0.75%, calculate:
a. The actual value
b. The real rate of discount and the cash price rate
8. Calculate the future value at compound interest of a capital of 100 000frs invested during 10 years at a
rate of 9%. Do the same calculation using simple interest. After how many years will the future value at
simple interest be equal the future value at compound interest?
9. Ten capitals are in arithmetic progression with 25000F as the common difference. Given that the seventh
capital is 45,000F, determine the first capital
10. Seven capitals in geometric progression were invested in a bank. Knowing that the first two capitals were
20,000F and 30,000F respectively, determine the common ratio, the fifth capital and the sum of the 7
capitals

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