QUESTION / SOALAN 1a) What is meant by time value of money?(2 marks)b) Draw a ca

QUESTION / SOALAN 1a)
What
is meant by time value of money?(2 marks)b)
Draw
a cash flow diagram to show how much money a person should be willing to pay
now that will yield RM400 per year for 5 years starting next year if the
interest rate is 10% per year. (Note: DO NOT solve the problem)(4 marks)c)
How do you obtain a nominal interest rate
(r)?(4 marks)a) (Total/Jumlah:10)
QUESTION / SOALAN 3A bank credit card carries an interest rate
of 2% per month on the unpaid balance.a)
Calculate
the effective rate per semi-annual period.(5 marks)b)If the interest rate
is stated as 5% per quarter find the effective rates per semi-annual and
annual periods.(5 marks)
(10 marks/markah)QUESTION/ SOALAN 4A company expects to realize a revenue of RM100000
during the first year starting now from the sale of a new product. Sales are
expected to decrease gradually with uniform gradient due to competition to a
level of RM 47500 on the eighth year from now.
i)
Draw
the cash-flow diagram following the end-of-period convention.(5 marks)
ii)
If
the revenue is invested at a rate of 10 % what will be the compound amount
eight years from now?(5 marks)

Attachments: