LANDMARK POLYTECHIC

VIA AYOBO ITELE/AYETORO,OGUN STATE.

MARCH 2024 EXAMINATION 2023/20204 ACADEMIC
COURSE BUSINESS FINANCE
COURSE CODE: BFN 221
CLASS: ND 2:2
INSTRUCTION: ANSWER ALL QUESTIONS

1a). Outline and discuss the financial objectives of a firm.

b. Highlight five non financial objectives of a corporate entity.

2a. XYZ limited invested N1,000,000 for 3 years at the rate of 10 1/2% per annum

i. Compute the simple interest

ii. What is the amount due to XYZ at the end of the 3 years on investment liquidation

b. ABC borrowed N500, 000 for 4 months at rate of 8% per annum. Calculate the simple
interest.
c. Define the following:
i. Time value of money
ii. Interest
iii.Interest rate
iv.Nominal value of money
v.Real value of money2

3a). Write short note on:

i). Risk
ii). Investment
iii). Finance
iv). Shares
v). Equity.
b. Differentiate between risk lovers and

4a) Our Lady Venture deposits N100,000 for 5 years at 10 percent interest rate compounded
annually. Required

i. Using a tabular approach, find the compound interest

ii. What is the future value of the sum at the end of the 5th year.

c. Kings – J Ltd deposited N400,000 at 16% compounded quarterly for 2 years. Find the compound
amount.