Financial Mathematics (ADTT5137)
Administrative Techniques - ADT
Semester: First Semester
Level:
Year: 2019
REPUBLIC OF CAMEROON THE UNIVERSITY OF BAMENDA
Peace - Work - Fatherland P.O. BOX 39 Bambili
School / Faculty: HTTTC Bambili Department: ADMINISTRATIVE TECHNIQUES Instructor: Mr. Atem Vallery E.M
Course Code: ADTT5101 Course Title: FINANCIAL MATHEMATICS I
Date: March 2019 Level: ACY/MKT/MGT500 Time: 90mins
Instructions:
Answer ALL QUESTIONS neatly, showing clear workings and answer at each stage. Only nonprogrammable
calculators are allowed.
QUESTION ONE (20mks)
Three persons created a business. The 1
st
contributed 1 0,00 000F at the start of the first year and
1000000F again at the start of the 3
rd
year. The second person contributed 3600000F at the start of the
second year. The third person contributed 800000F at the start of each year. At the end of the 5
th
year
the profit realized was distributed. The person who did the distribution committed an error by sharing
proportionally to the sums contributed without taking into consideration the duration of the investment.
Knowing that the third person received 175 000F more than what he was supposed to receive if the
sharing was done correctly;
Required
(a)
Determine the amount of profit that was shared
(b)
Determine the correct dividend of the persons concerned
QUESTION TWO (20mks)
A capital of 60,000 FRS is invested at x% for 180 days, the amount obtained (Acquired value) invested
at x%
for a year. If the interest of the second investment is 4,992F
Work required
a)
Express the second interest in as a function of the rate x%.
b)
Study the variation of the interest 0 ≤x ≤10.
c)
Present the interest function on a graph.
d)
From your graph determine the possible interest rate.
QUESTION THREE (20mks)
Mr. Nkokareck is a personnel manager in a company that rewards it worker based on their work done
and not forgetting their basic salary. Workers take home salary comprises of;
•
Basic salary and a bonus base on the sales they made per month.
•
Transport allowance of 12 500F
•
15% tax calculated on their gross salary excluding transport allowance
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purchases
%
100 000frs to
500 000frs
1.5
500 000frs to
1500 000frs
2
1 500 000frs to
3000 000frs
2.5
3 000 000frs to
5000 000frs
3
5000 000frs to
8 000 000frs
4
Above 8 000 000frs
5
Knowing that the basic salary stands at 12Q000 FRS monthly;
Calculate the net salary of a worker who made a sale of 7 250 000 FRS
Calculate the worker’s sales-if he had a net salary of 185475 FRS
Calculate a worker’s sales if the ratio of his commission to his basic salary is 3:8
Calculate a worker’s sales if the multiplier coefficient from his basic salary to his net salary is
1.814375.
QUESTION FOUR (10mks)
Proof the following
=
1 −
36000
=
36000
36000 −
n
=
(36000 + )
36000
=
36000( − )
“T” is the effective rate of interest “
A” is the Acquired value of capital
“n” is the number or days
“r” the interest rate per annum
“C” the capital invested
At times it is good to play the fool, to fool the fool that thinks he is fooling you
GOOD LUCK
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