NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#138:
Question6
Mark
Question:
An investor pays $100,000 today for a 4year investment that returns cash flows of $60,000 at the end of each of years 3 and 4. The cash flows
can be reinvested at 4.0% per annum effective.
Using an an
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#176:
Question10
Mark
Question:
At an annual effective rate of interest of 5%, the present value of a perpetuityimmediate with payments of 1 is the same as the accumulated
value of an nyear annuityimmediate with payments of 1.
De
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#136:
Question6
Question:
Project P requires an investment of 4000 today. The investment pays 2000 one year from today and 4000 two years from today.
Project Q requires an investment of X two years from today. The investment pays 20
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#130:
Question9
Mark
Question:
An investor wishes to accumulate 10,000 at the end of 10 years by making level deposits at the beginning of each year. The deposits earn a 12%
annual effective rate of interest paid at the end of each
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#133:
Question8
Mark
Question:
Brian buys a 10year decreasing annuityimmediate with annual payments of 10, 9, 8, . 1.
On the same date, Jenny buys a perpetuityimmediate with annual payments. For the first 11 years, payments are 1
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#176:
Question7
Mark
Question:
A loan is to be repaid by annual payments continuing forever, the first one due one year after the loan is made. Find the amount of the loan if
the payments are 1, 2, 3, 1, 2, 3, . assuming an annual e
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#132:
Question10
Mark
Question:
An insurance company has an obligation to pay the medical costs for a claimant. Average annual claims costs today are $5,000, and medical
inflation is expected to be 7% per year. The claimant is expec
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#176:
Question5
Question:
Jill would like to accumulate $10,000 at the end of 5 years.
She plans to do so by depositing $100 at the beginning of each month in the first year,
$100 + X at the beginning of each month in the second yea
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#129:
Question3
Mark
Question:
Senior executive is offered a buyout package by his company that will pay him a monthly benefit for the next 20 years. Monthly benefits will
remain constant within each of the 20 years.
At the end of e
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#137:
Question2
Mark
Question:
Mary purchases an increasing annuityimmediate for 50,000 that makes twenty annual payments as follows:
I. P, 2P, . , 10P in years 1 through 10; and
2
10
II. 10P(1.05), 10P(1.05) , . , 10P(1.05)
in yea
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#135:
Question6
Mark
Question:
A deposit of 1 is made at the end of each year for 30 years into a bank account that pays interest at the end of each year at j per annum. Each
interest payment is reinvested to earn an annual effectiv
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#132:
Question3
Mark
Question:
John invests a total of 10,000. He purchases an annuity with payments of 1,000 at the beginning of each year for 10 years at an effective annual
interest rate of 8%. As annuity payments are received, t
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#130:
Question3
Mark
Question:
Mark receives 500,000 at his retirement. He invests 500,000 X in an annual payment 10 year annuityimmediate and X in an annual payment
perpetuityimmediate.
His total payments received per year during
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#134:
Question2
Question:
You are given:
I. the present value of a 6nyear annuityimmediate of 1 at the end of every year is 9.996;
II. the present value of a 6nyear annuityimmediate of 1 at the end of every second year is 4.760;
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#135:
Question4
Mark
Question:
An annuityimmediate pays an initial benefit of one per year, increasing by 10.25 percent every four years. The annuity is payable for 40 years.
Using an annual effective interest rate of 5 percent, de
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#132:
Question3
Mark
Question:
John invests a total of 10,000. He purchases an annuity with payments of 1,000 at the beginning of each year for 10 years at an effective annual
interest rate of 8%. As annuity payments are received, t
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#131:
Question9
Question:
Answer:
A
B
C
D
E
This is the correct answer.
Mark
Solution:
Recall:
Divide by (1 + i ):
Video Solutions and Additional Content
Video Solution: SOA FM 1990N 18
Question Details
Question: SOA FM 1990N 18
Num
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#176:
Question2
Question:
Jane is considering purchasing one of two annuities.
The first is an annuity due that pays $500 semiannually for 10 years.
The second is an annuity due that pays $X each month for 10 years.
If the nominal r
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#176:
Question9
Mark
Question:
Jeff has 8,000 and would like to purchase a 10,000 bond. In doing so, Jeff takes out a 10 year loan of 2,000 from a bank and will make interestonly payments at the end of each month at a nominal rate o
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#130:
Question10
Mark
Question:
Barbara purchases an increasing perpetuity with payments occurring at the end of every 2 years. The first payment is 1, the second one is 2, the
third one is 3, etc. The price of the perpetuity is 110
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#135:
Question10
Mark
Question:
Deposits are to be made to a fund each January 1 and July 1 for the years 1985 through 1995.
The deposit made on each July 1 will be 10.25% greater than the one made on the immediately preceding Janua
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#131:
Question4
Mark
Question:
A perpetuity with annual payments is payable beginning 10 years from now. The first payment is 50. Each annual payment thereafter is
increased by 10 until a payment of 150 is reached. Subsequent paymen
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#136:
Question10
Question:
You are given:
I. The present value of a perpetuity of 100 per year, the first payment at the end of n years, is 169.
II. The present value of an increasing perpetuity of 100, 200, 300, etc., the first pay
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#129:
Question5
Mark
Question:
You are given an annuityimmediate paying 10 for 10 years, then decreasing by one per year for nine years and paying one per year thereafter,
forever. The annual effective rate of interest is 4%.
Calcu
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#138:
Question9
Mark
Question:
To accumulate 8000 at the end of 3n years, deposits of 98 are made at the end of each of the first n years and 196 at the end of each of the next
2n years.
n
The annual effective rate of interest is i.
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#130:
Question4
Mark
Question:
Esther invests 100 at the end of each year for 12 years at an annual effective interest rate of i. The interest payments are reinvested at an
annual effective rate of 5 percent. The accumulated value a
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#132:
Question6
Mark
Question:
Sally lends 10,000 to Tim. Tim agrees to pay back the loan over 5 years with monthly payments payable at the end of each month.
Sally can reinvest the monthly payments from Tim in a savings account pay
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#147:
Question3
Mark
Question:
A 1,000 bond with annual coupons is redeemable at par at the end of 10 years. At a purchase price of 870, the yield rate is i. The coupon rate is i
 .02.
Calculate i.
Answer:
A
B
C
D
E
This is the cor
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
uMyCourses Forums
Quiz#153:
Question7
Mark
Question:
A 10000 bond with 8
semiannual coupons is being sold 3 years and 4 months before the bond matures. The purchase will yield 6
convertible semiannually to the buyer.
Determine the difference between the
NED University of Engineering & Technology, Karachi
BBA
METALLURGY 1003

Spring 2016
NUMS
ENTRY TEST  MBBS / BDS
PAPER PATTERN
S/No
Subject
No of MCQs
1.
CHEMISTRY
45
2.
BIOLOGY
70
3.
PHYSICS
45
4.
ENGLISH
20
TOTAL
180
1
CHEMISTRY
Detail of Syllabus
PHYSICAL CHEMISTRY
1.
2.
Fundamental Concepts
a. Masses of atoms and molecules
b.
Accurat