Principles of Finance (FINA2202)
Faculty of Economics and Management Science (FEMS)
Semester: Second Semester
Level: 200
Year: 2016
Continuous assessment
Instructions: answer all questions
Duration: one hour
Q1: (9MARKS)
State and explain the three key principles that drive financial decisions.
Q2: (8 MARKS)
You are required to provide today (in 2016) the equivalent value of 4
payments to be made in the future;
-2017: CFAF107,800
-2019: CFAF60, 000
-2020: CFAF77,900
-2022: CFAF66,000
The discount rate is 15%
Q3: (5 MARKS)
You are offered to receive either CFAF300,000 today or CFAF786,440 within
8 years. Determine the discount rate that make both sums equivalent
Q4: (8 MARKS)
Determine the future value of 8 constant payments valued each CFAF600,000
at a discount rate of 12%. The future value is evaluated at the 8
th
payment.
THE UNIVERSITY OF BAMENDA
FACULTY OF ECONOMICS AND MANAGEMENT SCIENCES
Semester Course : Principles of Finance
Course Code: FIN0
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