ACFI1003 Trimester 1, 2018

Mid-Trimester Test Notice

 The mid-trimester test will be held in class and on

campus in Lecture 7 for all students .
 It will cover topics in Lectures 1 to 5 (inclusive):
 The test will consist of 20 multiple choice questions
worth 1 mark each plus 2 short answer theory
and/or practical questions (with parts) worth 10
marks each for a grand total of 40 marks.
 The quiz will cover both practical and theoretical
questions.
 It is a closed-book test.
 Duration: 1 hr and 30 minutes.
 Weighting: 30%
 You will need a calculator. Only non-programmable
calculators can be used. Mobile phones cannot be
used as calculators
 You must answer all questions.
 On the next page please see the formula sheet you
will be provided as a part of the mid-trimester test.

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 ACFI1003 Formula Sheet for Mid-Trimester Test

Financial Mathematics
𝐶1 −𝐶0
Rate of Return 𝑟=
𝐶0

Simple Interest:

Interest amount I  Ptr

Future Value 𝑆 = 𝑃(1 + 𝑟𝑡)

𝑆
Present Value 𝑃= (1+𝑟𝑡)

Compound Interest:

Future Value S  P(1  i) n

S
Present Value P
(1  i) n

j m
Effective Rate of Interest i e  (1  ) 1
m
 1 i 
Real Interest Rate i *     1
1 p 

C  1 
Present Value of Ordinary Annuity P 1  (1  i)n 
i  

C 1 
Present Value of Annuity Due P 1  (1  i)
i  (1  i) n 


1 C  1 
Present Value of a Deferred Annuity P k 1
 1  n 
(1  i) i  (1  i) 

C
Ordinary Perpetuity P
i

Future Value of Ordinary Annuity S

C
i

1  i n  1 
Future Value of an Annuity Due S
C
i
 
1  i n  1  (1  i)
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