Lecture Note

DISTANCE LEARNING INSTITUTE
UNIVERSITY OF LAGOS

300L ACCOUNTING

RESEARCH ASSIGNMENT (FBA 320) (TO BE SUBMITTED JULY 30TH)
(A)    Distinguish between research and accounting research
(B)    What are the characteristics of scientific research.
(C)    Discuss the steps involve in a scientific research
        state your references
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TAKE HOME ASSIGNMENT BUSINESS FINANCE 1(fin 310)  (TO BE SUBMITTED DURING RESIDENTIAL)

ANSWER ALL QUESTION, SHOW ALL WORKINGS CLEARLY.
1.    What is amortization? new state property development corp. offers to sell a building to cletus at a price of N9.5 million. cletus is to make a down payment of N3.2 million now, while the balance is payable through a primary mortgage firm, in equal payment for five years at 10.5% rate of interest. calculate the amount cletus will be required to pay per year. prepare a schedule to show how much as interest and how much as principal cletus will be paying each year to pay up the mortgage.
2a.    Mr chris umana and esusu contribution collector offers to pay you N100,000 in 8years time if you pay him N16,778,52 today. At what rate of interest is mr umana making this to you (annual compounding)?
b.    what is the difference between an ordinary annulty and a perpetuity, show what 250,000 received at the begining of each at 12% p.a. will be what at the end of 5years?
3.    mr benedict agreed to lease a certain property at the following annual rentals payable at the begining of each year for 10years as follows: year 1to4: N2.4 million: year 5to7 N3.2 million and year year 8to10 N3.8 million. intereat rate at 61/2%  for year 1to4: 71/4% for year 5to7 and 8.5% for year 8to10. What lump sum of money will pay all these rents?
4a.    Progressive youth club of Umuokoro plan to sponsor umuokoro Comprehensive high school annual prize-giving day ceremony to the tune of N750,000 p.a. perpetually. It is envisaged that the cost of the event will increase at a constant rate of 3.5% per year. The club has just remitted the amount for this year’s event. How much will the club need deposit once and for all in an endowment account for this obligation if fund in the account attracts 81/4% interest rate per annum?
b.    Courage and Co. Ltd borrowed N12 million that the company intends to pay back in six years time by setting up a sinking fund. Interest rate is 7.5% p.a. How much is the annual payment? Prepare a schedule to monitor how money grows in the fund.
5.    Your uncle has offered you a choice of one of the three following alternatives: N550,000 now; N100,000 a year for eight years; or N1,200,000 at the end of eight years. Assuming you could earn 10% annually, which alternative should you choose? If you could earn 12% annually, would you still choose the same alternative?
6.    Consider cash flows of N200,000 at the end of year 1, N250,000 at the end of year 2 and N350,000 at the end of year 3. Assuming an interest of 12.5%, calculate the single amount that is equivalent in value: (a) if received today (b) if received at the end of year 1 (c) if received at the  end of year 2 (d) if received at the end of year  3.
7a.    If you promise to leave N3,675,000 on deposit at magna savings and loans Ltd for three and half years, the bank will give you a new car now and your N3,675,000 back at the end of three and half years. How much are you,in effect,paying for the car if the bank pays 15% interest compounded quarterly?
b.     How long will it take for an initial investment to double at an ineterest rate of 8% compounded annually?
8a.    The wafrace foundation desire to establish a fund that will pay a N225,000 prize to an outstanding academic accountant. The first prize is to be awarded now and the prize will be awarded every two years thereafter perpetually. How much will the foundation need to establish the fund, if interest rate is 41/2% compounded annually?
b.    Mrs Christine Ndubueze, a DLI alumnus and a chartered personnel manager, intends instituting annual prizes perpetually for the best students all levels (year 1to5) in DLI Accounting and Business Administration programs. Christine can afford only N2.5 million for this endowment. How much can be equally shared among the ten (10) best students per annum(to the nearest N100) if interest rate is 4.75% compounded annually?
9a.    N1.8 million is invested for 54/5% years at 15.5% interest rate. Find what this will amount to if interest is compounded continously. What is the effective interest rate?
b.    An oil crilling firm figures out that N22,500 must be spent for an initial supply of drill bits and that N4,500 must be spent every month to replace worn out bits. What is the present value of the costs of the bits if the firm plans to be in business indefinitely and discounts payments at 1.75% per month?
10.    New Haven Local Government bond is due to mature in 8 years time and pays semi-annual coupon of N50,00 and will also pay N1000 at maturity. What is the price of the bond if prevalling annual interest rate is (a) 11% (b)8% (c) at what interest rate will the bond be selling at par?

FBA 310- BUSINESS STATISTICS 11  (TO BE SUBMITTED DURING RESIDENTIAL)
Exercise 7: 7.6.1-7.6.10
Exercise 8:8.3.1-8.3.10
Exercise 9:9.7.1-9.7.10
Exercise 10:10.5.1-10.5.10
Exercise 12:12.1-12.10
Recommended texts book for this assignment
Basic Statistical Methods and Statistical Methods
by E.O. ESAN and R.O. OKAFOR

ACCOUNTING THEORY (ACC 311)
What are the effect of economic meltdown?
this assignment as already been submitted 

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Akinduro Dapo Akinbola 08167849495 (faculty of sci. theater 09)