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NATIONAL OPEN UNIVERSITY OF NIGERIA
UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF MANAGEMENT SCIENCES
JANUARY 2021 EXAMINATION
COURSE CODE: MBF 839
CREDIT UNIT: 3
COURSE TITLE: QUANTITATIVE TECHNIQUES FOR BANKING & FINANCE
TIME ALLOWED: 2 1/2HRS
INSTRUCTIONS: 1. Attempt Question One (1) and any other three (3) questions
2. Question 1 carries 25 marks, while the other questions carry 15 marks each.
3. Present all points in coherent and orderly manner
1a. Jide was a staff of Musa Plc for fifteen good years, Jide began with an annual salary of fifteen thousand naira (N15,000) with an initial increment of N1,000. As the 11th year begins at Musa Plc there was an annual salary raise of N5,000 in response to the general economic improvement in the country. Calculate the Cumulative Salary earning of Jide for the 15 years period at Musa plc. 15 marks
b. The second term of an A.P is 15 and the 5th term is 21.
(i) Calculate Common Difference 5 marks
(ii) Find the first term and sum of the first 10th term. 5 marks
2. A pure water nylon costing #1,000 has an expected life of 5years. It is estimated that the cash flow resulting from the use of the machine will be #300 a year. The rate of return expected from capital of the type is 15%. Is the investment worthwhile? 15marks 3a. Discuss linkage between earnings per share and dividends per share? 10marks b. In a firm of 1,250 employees, 575 are male. Find the percentage of female employees.5marks
4a. Consider the following table showing how 10 students were ranked according to their performance in their class work and their final examinations.
| Student | Ranking Based on Class Works | Ranking Based on Exam Marks |
| A | 2 | 1 |
| B | 5 | 6 |
| C | 6 | 4 |
| D | 1 | 2 |
| E | 4 | 3 |
| F | 10 | 7 |
| G | 7 | 8 |
| H | 9 | 10 |
| I | 3 | 5 |
| J | 8 | 9 |
Calculate the rank correlation and indicate the level of their relationship 9 Marks
b. Differentiate between rank and partial correlation 6 marks
5a. Compute the future value of twenty thousand naira (N20, 000) paid into a savings account by Emeka for 3 years at an interest rate of 24% yearly:
(i) Yearly 2 marks
(ii) Every Six months 2 marks
(iii) Every three months 2 marks
(iv) Every Month 2 marks
b. Johnson paid in five thousand naira (N5000.00) into a savings account that earns interest at 17½ yearly for 4 months. Compute the simple interest on Johnson’s savings for the 4 months periods. 2 marks
c. Enumerate five (5) dissimilarities between the computation of Simple and Compound Interest 5 marks
