Business Mathematics 1 (MGTC2208)
Higher Institute of Commerce and Management (HICM)
Semester: Second Semester
Level: 200
Year: 2019
UNIVERSITY OF Bamenda
Higher Institute of Commerce and
Management
SECOND SEMESTER EXAMINATION
Department: All Examiner:
Prof.
Njimanted
Academic year: 2018/2019
Godfrey Forgha
Date: Course title: Business Mathematics I
Time allowed: 2 HOUR Course codeMGSC208: Credit value: 6
INSTRUCTIONS: Answer ALL Questions
Question one (20mark)
Given that the numerical value of simple interest
could be obtained as:
S.I. =
….
[1.1]
Where; S.I.. is Simple Interest; P, is Principal; R, is Rate
in percentage and T, is Time
You are required to:
Find the simple interest on 68,000FRS in 14 years at
5.5% per annum
i) If the simple interest on a sum of money invested
at 3% per annum for 2
years is 123,000 FRS, find
the principal invested.
ii) if the simple interest on 120,576 FRS in 4 years is
28.7000FRS, find the rate in per cent per annum
iii) If the simple interest on a sum of money invested
at 12
% per annum for 6years is 127,200 FRS, find
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the sum
iv) How long will it take a sum of money to double
itself at 5% per annum compound interest?
Question Two (30marks)
Consider that:
FV
=
PV 1 +
i
n
tn
………….. (1.2)
i)
Find the value of t and i
The sum of 50,000 FRS was invested in an account
with a police credit union at an interest rate of 4
percent per annum; find the overall amount in the
account given that.
After 5 year if the interest is compounded
continuously
ii) After five years, if the interest rate is compounded
continuously
iii) After ten year if the interest is compounded
continuously
iv) An investor invests a sum of 750,000frs at an
annual interest rate of 19% compounded annually.
Find: (v The future value at the end of 9 years; (vi)
The future value at the end of 12 years, (vii) the a)
Simple interest paid on yearly basis
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Question Three (20marks): Write short note on the
following concepts:
a) Principal
b) Discounting
c) Compounding
d) Continuous discounting
e) Time Value of money
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