1.
Catherine is buying a house and needs to borrow $100,000. She applies
to a bank which offers her a 18 year loan at 7.6% p.a. convertible
quarterly, with repayment instalments of $ 1900 per quarter for the first
5 years followed by $R per quarter during
1.
Find the nominal annual rate of interest convertible quarterly (as a % to
2 decimal places) given that:
Amount at the beginning of the period is $2000
Amount at the end of the period is $2200
Time period is 4 years and 9 months
(Work in quarters and ca
Sydney Institute of Business and Technology
ACST101 Elements and Techniques of Finance
Tutorial 6 Solutions
Q1.
a n at rate i is less than s n at rate i
(as long as i > 0%)
(Because the present value of an annuity is less than the accumulated value)
Q2.
a
ISYS104
Assignment Specification
Module
Assignment 2
Level
Access Databases (Entry-Intermediate Level)
Due For Completion
Software Used
To be submitted and marked in practicals.
To be completed by the beginning of your class in week 12
Microsoft Access 20
1.
Find the future value if the principal is $5600, the nominal rate of
interest is 5.4% p.a. convertible 2 times a year and the term of the
investment is 4 years.
(The wording means that j2 = 5.4%, hence the half-yearly rate is 5.4%/2.)
Student Response
1.
$900 per quarter was deposited from 1 July 2000 to 1 July 2006
inclusive into a fund paying interest at j4 = 8.8%. Calculate the size of the
fund at 1 July 2006.
(Make sure you count the number of payments carefully. Remember that if
there is a payment
1.
A loan of $50,000 is to be repaid by equal monthly instalments over 18
years at 7.2% p.a. convertible monthly. Calculate the monthly instalment.
(7.2% p.a. convertible monthly means j12 = 7.2%.)
Student Response Value
Answer: 413.61
100% 413.61
Correct
Elements Summary Notes
Equity and Shares:
Shareholders own a proportion of the company depending on their shareholding.
Dividends are payments to shareholders that come from company profits
Ordinary shareholders may vote on the election of board members
D
Module 9
1) Derivatives are the financial instruments that are:
a) financial assets, such as shares and bonds that derive their value from the value of the
company that issues them.
b) financial assets whose rates of return must be derived from informatio
3. Time Value of Money II tutorial solutions (tutorial in week 4)
1. You are in first year at university and are planning a trip to Vietnam when you
graduate at the end of 4 years. You plan to save the following amounts annually,
starting today: $625, $70
Module 8
1) Generally, an initial public offering is:
a) an offer to potential investors of ordinary shares to newly list a company on a stock exchange.
b) an offer to potential investors of preference shares to newly list a company on a stock exchange.
c
CH 3 Review Game
Supply and Demand
Suppose that baggy jeans were fashionable in the
early 1990 become unfashionable in the late 1990s.
If other factors were held constant, then there
would be
A) a rightward movement along the supply curve.
B) a rightward
This question paper must be
returned. Candidates are not
permitted to remove any part
of it from the examination room.
SEAT NUMBER: . ROOM: .
FAMILY NAME.
OTHER NAMES.
STUDENT NUMBER.
SESSION 2 EXAMINATIONS - NOVEMBER 2013
Unit Code/Name:
ACST101 TECHNIQU
Department of Applied Finance and Actuarial Studies
ACST101 : Techniques and Elements of Finance
Revision Exercises on Week 1 : SIMPLE INTEREST & DISCOUNT
LECTURE SUMMARY
The 2 simple interest formulae are I = Prt and S = P(1 + rt).
When counting the time
Department of Applied Finance and Actuarial Studies
ACST101 : TECHNIQUES AND ELEMENTS OF FINANCE
Solutions to Test 2 : Session 1, 2013 (Blue)
1.
(i)
Present value = 100 a
.07
12
36|
= $3,238.65
(ii)
Future value = 2,000 s.06
10|
= $26,361.59
(iii)
3
Total
Department of Applied Finance and Actuarial Studies
ACST101 : TECHNIQUES AND ELEMENTS OF FINANCE
Test 1 : Session 2, 2014
Student Name:
Tutorial Day and Time:
Student Number:
Tutors Name:
Instructions:
For Questions 1 and 2 write down the answer in the sp
Department of Applied Finance and Actuarial Studies
ACST101 : TECHNIQUES AND ELEMENTS OF FINANCE
Solutions to Test 1 : Session 2, 2014 (Yellow)
1.
(i)
S = P(1 + rt)
60 )
3,000 = P(1 + 0.055 365
P = $2,973.12
(ii)
P = S(1 dt)
50 )
= 100,000 (1 0.05 365
= $
Department of Applied Finance and Actuarial Studies
ACST101 : TECHNIQUES AND ELEMENTS OF FINANCE
Test 1 : Session 1, 2014
Student Name:
Tutorial Day and Time:
Student Number:
Tutors Name:
Instructions:
For Questions 1 and 2 write down the answer in the sp
Department of Applied Finance and Actuarial Studies
ACST101 : TECHNIQUES AND ELEMENTS OF FINANCE
Solutions to Test 2 : Session 2, 2014 (Yellow)
1.
(i)
Future value = 1,000 s
0.05
12
60|
= $68,006.08
Sum deposited = 10,000 a 0.05 = $77,217.35
(ii)
10|
(iii
Department of Applied Finance and Actuarial Studies
ACST101 : TECHNIQUES AND ELEMENTS OF FINANCE
Test 2 : Session 2, 2014
Student Name:
Tutorial Day and Time:
Student Number:
Tutors Name:
Instructions:
Closed book exam Notes, textbooks or blank sheets of
Department of Applied Finance and Actuarial Studies
ACST101 : TECHNIQUES AND ELEMENTS OF FINANCE
Solutions to Test 1 : Session 1, 2014 (Yellow)
1.
(i)
No. of days = 16 + 30 + 31 + 24 = 101
I = Prt
= 5,000 0.05 101
365
last day included
= $69.18
(ii)
Time
Department of Applied Finance and Actuarial Studies
ACST101 : TECHNIQUES AND ELEMENTS OF FINANCE
Solutions to Test 1 : Session 1, 2013 (Yellow)
1.
(i)
No. of days = 16 + 31 + 30 + 7 = 84 last day included
S = P(1 + rt)
= 5,000(1 + 0.055 84 )
365
= $5,063.
Department of Applied Finance and Actuarial Studies
ACST101 : TECHNIQUES AND ELEMENTS OF FINANCE
Test 3 : Semester 1, 2012
Student Name:
Tutorial Day and Time:
Student Number:
Tutors Name:
Instructions:
For Question 1 write down the answer in the space pr
Department of Applied Finance and Actuarial Studies
ACST101 : TECHNIQUES AND ELEMENTS OF FINANCE
Test 1 : Semester 1, 2012
Student Name:
Tutorial Day and Time:
Student Number:
Tutors Name:
Instructions:
For Questions 1, 2 and 4 write down the answer in th
Department of Applied Finance and Actuarial Studies
ACST101 : TECHNIQUES AND ELEMENTS OF FINANCE
Solutions to Test 2 : Semester 1, 2012 (Yellow)
1.
(i)
Future value = 500 s.0175
12|
= $6,612.55
X = 200 a.005
(ii)
12|
= $2,323.79
(iii)
4
Total value = 200
Department of Applied Finance and Actuarial Studies
ACST101 : TECHNIQUES AND ELEMENTS OF FINANCE
TECHNIQUES READING FOR WEEK 1
SIMPLE INTEREST & SIMPLE DISCOUNT
INTRODUCTION TO TECHNIQUES
The first half of the lectures develop the basic techniques require
Department of Applied Finance and Actuarial Studies
ACST101 : Techniques and Elements of Finance
Solutions to Tutorial Exercises on Week 1
1.
I = ?, P = 10,000, t = 3 , r = 0.045
12
I = Prt
= 10,000 0.045 3
12
= $112.50
2.
I = ?, P = 8,000, t = 159 , r =
Tutorial 2: Time Value of Money - single amounts (tutorial in week
3)
1. Why is the time value of money so important in the field of finance?
A: The time value of money is the idea that a particular sum of money today is worth more
than the same amount at
Department of Applied Finance and Actuarial Studies
ACST101 : TECHNIQUES AND ELEMENTS OF FINANCE
TECHNIQUES READING FOR WEEK 3
COMPOUND INTEREST (Part 2)
From WEEK 2 we saw that questions requiring the future value or the present value of a single
payment
Partnerships (Ch. 15)
ACCG101 Week 5
2015 Session 1 Stanley & Rajni
Learning Objectives
1. define a partnership and the major attributes of a partnership (p.
634)
2. state the advantages and main characteristics of the partnership
structure of business (p
Financial Statement Analysis
(Ch. 25)
ACCG101 Week 8
2015 Session 1 Stanley & Rajni
Learning Objectives
1. identify the need for using various analytical techniques to assess
an entitys performance and financial position (pp. 10779)
2. prepare horizontal,
Week 5 Lecture Example
Formation and Allocation of Profit
On 1 October 2010, Len Langfield and Sue Smith formed a partnership. Some
business assets and the liabilities of Langfield were assumed by the partnership, and
these are listed below at both fair v
ACST201 Financial Modelling
Question 1
Group spreadsheet projectTask 3
S2 2016
[10 marks]
The objective of this assignment is to confirm some of the results presented
to you in week 07, on slides 4042. We proceed as follows.
In a spreadsheet, create three
Department of Applied Finance and Actuarial Studies
ACST101 : TECHNIQUES AND ELEMENTS OF FINANCE
Solutions to Test 3 : Semester 1, 2012 (Yellow)
1.
(i)
NPV = 200,000 + 4,000 a.01
96|
= $46,110.81 or $46,111 (both accepted)
(ii)
IRR is the interest rate wh