School of Business and Economics

Westminster International University in Tashkent

School of Business and Economics

4FNCE001C
Financial Mathematics and Principles

Thursday, 6th May 2021 10:00 – 12:00

Venue: On-line Time allowed: 2 hours 30 minutes

The following items are provided:

One Examination Question Paper (3 printed pages in total inclusive of cover page) and one Answer Book (8 printed pages in total inclusive of cover page)

Candidates are permitted to bring into the examination room:

• Calculator

• Pencil

• Black or blue pen

• Ruler

Instructions:

Candidates must answer any four questions from Section A and any four questions from Section B.

• 
  The paper consists of 10 questions
  
• 
  All answers must be written in the answer book(s) provided.
  
• 
  All rough work must be written in the answer book(s) provided.
  
• 
  Black or Blue pen only must be used for written answers and pencil for all drawings and sketches. The use of pencils or erasable pens is not permitted without approval.
  

Ensure you have the correct number of pages on your examination question paper. Note to Candidates: Please check the Module Code and Module Title to ensure that you are attempting the correct examination. If in doubt, please contact the Invigilator.


DO NOT TURN OVER THIS PAGE UNTIL INSTRUCTED TO DO SO BY THE INVIGILATOR

Section A

Answer ALL questions from the following questions;


Q1. (a) Find the present value of $12,500 to be paid 5 years from now when the interest rate is 10 percent if interest is compounded semiannually;

(b) determine the interest rate needed to have money double in 5 years when compounded semiannually;

(c) find the effective annual interest rate compounded semiannually.