Property Investment Exam paper
Page 1 of 4
universityY
Westem Sydney
Bringing knowledge to life
FINAL EXAMINATION
SPRING SESSION 2010
SCHOOL OF ECONOMICS & FINANCE
Student Family Name:
Student Given Names:
Student Number:
Course:
Unit Name (In Full):
Property Investment
Unit Number:
200749
Time Allowed:
3 (Three) hourIs including 10 minutes reading time
Number of Questions:
7 (Seven)
Total Number of Pages: 4 (Four)
Lecturer's Name:
Norman Harker
INSTRUCTIONS
PLEASE READ CAREFULLY BEFORE PROCEEDING
1. Write your name and student number on the top of this examination paper and on ALL answer booklets.
2. All examinations include reading time, which allows you to spend some time at the start of the examination composing yourself, reading the examination paper, and planning which questions to answer, and how. We advise you to read the instructions and questions carefully, before you begin writing. However, you are allowed to begin writing straight away if you wish.
3. This is
a CLOSED book examination.
4. Answer in the Answer Booklet provided
5. All questions carry 20 marks.
6. Sharp EL 738, EL 735S, EL735 or any other non-programmable calculator.
7. Answer Questions 1 and 4 other questions only.
DO NOT TAKE THIS PAPER FROM THE EXAMINATION ROOM
Property Investment 200749 FINAL EXAMINATION
EXAM CS -SPRING 2010
Page 2 of 4
Question 1 (Compulsory Question) (20 Marks)
a) A bank wants to secure an annual effective rate of 7.8% but quotes annual nominal compounded monthly. What should it quote? (2 Marks)
b) A bank uses nominal rates compounded monthly of 2.8% on some accounts but quotes a nominal rate compounded daily on others. To get the same equivalent rate, what should the second rate be? (2 Marks).
c) A property yields a weekly rental and I have set up a weekly cash flow over the 10 year term. An IRR of that cash flow produces the result of 0.1291 %. What is the annual
effective
universityY
Westem Sydney
Bringing knowledge to life
FINAL EXAMINATION
SPRING SESSION 2010
SCHOOL OF ECONOMICS & FINANCE
Student Family Name:
Student Given Names:
Student Number:
Course:
Unit Name (In Full):
Property Investment
Unit Number:
200749
Time Allowed:
3 (Three) hourIs including 10 minutes reading time
Number of Questions:
7 (Seven)
Total Number of Pages: 4 (Four)
Lecturer's Name:
Norman Harker
INSTRUCTIONS
PLEASE READ CAREFULLY BEFORE PROCEEDING
1. Write your name and student number on the top of this examination paper and on ALL answer booklets.
2. All examinations include reading time, which allows you to spend some time at the start of the examination composing yourself, reading the examination paper, and planning which questions to answer, and how. We advise you to read the instructions and questions carefully, before you begin writing. However, you are allowed to begin writing straight away if you wish.
3. This is
a CLOSED book examination.
4. Answer in the Answer Booklet provided
5. All questions carry 20 marks.
6. Sharp EL 738, EL 735S, EL735 or any other non-programmable calculator.
7. Answer Questions 1 and 4 other questions only.
DO NOT TAKE THIS PAPER FROM THE EXAMINATION ROOM
Property Investment 200749 FINAL EXAMINATION
EXAM CS -SPRING 2010
Page 2 of 4
Question 1 (Compulsory Question) (20 Marks)
a) A bank wants to secure an annual effective rate of 7.8% but quotes annual nominal compounded monthly. What should it quote? (2 Marks)
b) A bank uses nominal rates compounded monthly of 2.8% on some accounts but quotes a nominal rate compounded daily on others. To get the same equivalent rate, what should the second rate be? (2 Marks).
c) A property yields a weekly rental and I have set up a weekly cash flow over the 10 year term. An IRR of that cash flow produces the result of 0.1291 %. What is the annual
effective