Centrally Planned Economy
What is a Centrally Planned Economy?
A Centrally Planned Economy is an economic system where the economic
decisions are made by state or government.
The government owes and manages all of the countrys resources.
There is no inter
Financial Mathematics (BUS2016H) Tutorial 8.
Time : 1 12 hours
20 May 2015
Q1. A business venture requires an initial investment of R10 000 and a further investment
of R3 000 in a years time. The venture will produce an income of R500 in tw
Financial Mathematics (BUS2016H) Tutorial 1.
Time : 1 Hour
24 February 2015
Q1. Given below are three types of investment that can be modelled as cash ow processes.
For each of them, describe in detail the timing and amounts of all cashows
Financial Mathematics (BUS2016H) Tutorial 2.
Time : 1 14 Hours
10 March 2015
Q1. The force of interest (t) is a function of time and, at any time t (measured in years),
is given by the formula:
0.07 0.005t , 0 t < 5
0.06 0.003t, 5 t < 10
Financial Mathematics (BUS2016H) Tutorial 10.
Time : 1 12 hours
August 4 2015
Q1. A loan of nominal amount R1 000 000 is redeemable at 133% by triennial (after
every three years) payments of capital. The cash amount of the tth repayment is
Financial Mathematics (BUS2016H) Tutorial 15.
13 October 2015
Time : 1 4 Hours
Total Marks: 36
Q1. A life office is modelling its investment performance over the next 10 years by assuming
that the yield obtained during the first 5 years will have a cons
Financial Mathematics (BUS2016H) Tutorial 6.
Time : 1 Hour
28 April 2015
Q1. In return for a single payment of R100, a building society offers the following alternative
(i) A lump sum of R1330 after 3 years;
(ii) A lump sum of R15
Financial Mathematics (BUS2016H) Tutorial 13.
15 September 2015
Time : 1 2 Hours
Total Marks: 40
Q1. In a particular bond market, n-year spot rates per annum can be approximated by the
function 0.08 0.04e0.1n . Calculate:
(a) The price per unit nominal
UNIVERSITY OF CAPE TOWN
DIVISION OF ACTUARIAL SCIENCE
SCHOOL OF MANAGEMENT STUDIES
BUS2016H-FINANCIAL MATHEMATICS TEST 2
1 October 2013
Time : 1 14 hours
Instructions for candidates:
Candidates should answer all questions showing clearly the wor
Financial Mathematics (BUS2016H) Tutorial 12.
Time : 1 14 hours
September 8 , 2015
Q1. A 10-month forward contract is issued on 1 March 2002 on a stock with a price of
R12 per share at that date. Dividends of R1.50 per share are expected on
Financial Mathematics (BUS2016H) Tutorial 7.
Time : 1 12 Hours
12 May 2015
Q1. A loan of R11820 was repayable by an annuity payable quarterly in arrear for 15 years.
The repayment terms provided that at the end of each five year period the
Set of Financial Statements
There are four main financial statements which are used by companies namely the
balance sheet, an income statement, a statement of changes in equity as well as a
cash flow statement.
A balance sheet is also known as a statement
A mixed economy has mainly combined elements of market and various planned
There is some criticism about the idea of mixed economies around the world.
Numerous economists have questioned the validity of the concept of mixed
What is accounting and its purpose?
It's the systematic process of recording, measuring, identifying, verifying, classifying,
summarising, interpreting and communicating financial information to the
shareholders and possible shareholders.
The process or w
Recognition criteria for an element of financial statements
In order for an asset to be recognized, it must be the following definition laid down in
the IASB Framework: an asset is resource controlled by the business as a result of
past events and
Principals and Assumptions to be adhered to
All of these principals and assumptions will be found under the Generally Accepted
Accounting Principles (GAAP). GAAP attempts to standardize and regulate all
accounting definitions, assumptions and methods. As
Rules and regulations governing accounting and its disclosure requirements
The Rules and Regulations
In accounting there are various rules and regulations governing accounting and its
disclosure. Companies privately owned are mainly not compulsory by law
Qualitative Characteristics of Financial Statements
All information must be understandable to anyone who is to read the companys
financial statements. This means that the information need to be presented clearly
for anyone to be able to
What is a Market Economy?
In a market economy decisions regarding production, investment and
distribution are determined by supply and demand
Prices of goods and services are set freely by the forces of the supply and
demand of a product
The Elements of financial statements with relevant examples
There are ten elements of financial statements which include:
Investments by owners
Distribution to owners
INSTITUTE AND FACULTY OF ACTUARIES
12 April 2016 (am)
Subject CT1 Financial Mathematics
Time allowed: Three hours
INSTRUCTIONS TO THE CANDIDATE
Enter all the candida