Faculty of Business and Economics
Department of Accounting and Finance
AFX 9510- Quantitative Methods
AFX 9510 Quantitative Methods (Financial Mathematics)
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1. RATE OF RETURN
AFX 9510 Quantitative Methods
Final Exam, Semester 1, 2008
All material covered in lectures is examinable.
Revision questions given at the end of the
lectures are a good guide to the final exam.
Financial Maths is examinable
Filbin Hardway, a tireless and enthusiastic entrepreneur purchases a rare stamp on E-Bay
for $5,000. He immediately puts the stamp back on the market and sells it four months
later for $5,500.
(a) What simple annual interest rate is implicit i