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CS/APR2006/MAT112

UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION

COURSE COURSE CODE EXAMINATION TIME

BUSINESS MATHEMATICS MAT112 APRIL 2006 3 HOURS

INSTRUCTIONS TO CANDIDATES 1. 2. 3. 4. 5. This question paper consists of five (5) questions. Answer ALL questions. Calculators can be used. Do not bring any material into the examination room unless permission is given by the invigilator. Please check to make sure that this examination pack consists of: i) the Question Paper ii) an Answer Booklet - provided by the Faculty iii) a one -page Appendix (Income Tax) iv) a one-page Appendix ( List of Formula)

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO This examination paper consists of 6 printed pages
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CS/APR2006/MAT112

QUESTION 1

a)

On 20 March 2005, Encik Basir took a personal loan of RM7.000 from a bank that charged a simple interest rate of 9%. The loan was settled on 15 August 2005. Find

the term of the loan in days using exact time.

(3 marks)
the amount paid on 15 August 2005 using Banker's Rule.

(3 marks)

b)

Hassan took a loan from a bank that charged a simple interest rate of 8.5% per annum for a duration of 30 months. If the interest paid was RM3, 187.50, how much was the loan? (3 marks) Remy received a 90 days note with a face value of RM8.000 and a simple interest rate of 7%. The maturity date is 9 November 2005. Remy discounted the note 30 days before the maturity date at a discount rate of 8%. Calculate
i) the date of the note.

c)

(2 marks)

ii)
iii)

the maturity value of the note.

(3 marks)
the proceeds received.

(3 marks)

iv)

the simple interest rate that is equivalent to the discount rate.

(3 marks)

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CS/APR 2006/MAT112

QUESTION 2

a)

RM6.000 is invested at 5.5% compounded monthly for the first 4 years and 6.5% compounded quarterly for the next 3 years. Find

i) ii)

the amount at the end of the first 4 years.

(4 marks)

the amount at the end of the seven years of investment.

(5 marks)

b)

Daud intends to buy an annuity scheme that offers an interest rate of 5% compounded monthly. He expects to receive RM800 every month for the next six years starting a month from the date of purchase. How much would Daud have to pay for the scheme? (6 marks)
Find the amount to be invested semi-annually at 12% compounded every six months to accumulate RM25.000 in five years. (5 marks)

c)

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CS/APR 2006/MAT112

QUESTION 3

a)

A loan of RM9.000 was settled by making monthly payments for 3 years. If the interest rate was 10.5% on reducing balance, calculate the monthly payment. Use the constant ratio formula. (5 marks)

b)

Mary purchased a television for RM3.890 on an installment plan. He paid a down payment of RM778 and the balance was settled by paying RM156 each month for 2 1/2 years. Determine the outstanding principal balance immediately after the 18th payment using the Rule of 78. (7 marks) Raju bought a refrigerator on an installment plan. After paying RM500 as a down payment, he has to pay RM144 every month for 18 months. The interest rate charged was 11% on the original balance. Find
i) the installment price.

c)

(4 marks) ii) the total interest charged. (4 marks)

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CS/APR 2006/MAT112

QUESTION 4

a)

The invoice of RM4.500 dated 26 May 2005 has trade discounts of 11%, 9% and cash discount terms of 4/10, 2/20, n/30. The payment was made on 13 June 2005. Find the i) ii) iii) single discount equivalent to the trade discounts given. (3 marks) net price after deducting the trade discounts. (2 marks) total payment on 13 June 2005. (4 marks)

b)

A retailer bought a massage chair for RM5.000. Operating expenses incurred were 5% based on cost. The retailer wanted a 10% net profit based on cost. i)
ii) iii) iv)

Calculate the selling price.

(3 marks) Calculate the markup percent based on the selling price. (3 marks) Calculate the breakeven price. (2 marks) However after a while, the price was marked down by 10% and later sold. Did the retailer suffer any loss? (3 marks)

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CS/APR2006/MAT112

QUESTION 5

a)

Given a sequence : 2, 4, 8, ..., 2048. Find the number of terms in this sequence. (4 marks)

b)

The Wirama Company bought a machine which costs RM25.000 and has a useful life of 10 years. At the end of its useful life, the machine is estimated to have a value of RM8,000. After 5 years, the company wants to sell the machine. Calculate the price that should be offered based on the book value using ; the straight line method (4 marks)

the reducing balance method.

(4 marks)

c)

En. Hasrul has four children and his wife is a housewife. Two of the children are still schooling and the other two are above 18 years old and working. His income and expenses for the year 2004 were as follows:

Total income EPF Life Insurance Premium Cash donations Medical expenses on parents Zakat

RM 54,000 3,100 2,250 800

750 250

Calculate the tax payable for the assessment year 2004(8 marks)

END OF QUESTION PAPER

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APPENDIX 1

CS/APR2006/MAT112

TAX RATE SCHEDULE FOR PERSONAL INCOME

Taxable Income (RM)

Rate

Tax (RM)

On the first On the next

2,500 2,500

0 1

0 25
25

On the first
On the next
On the first

5,000 15,000

450

20,000 15,000 7

475 1,050

On the next On the first On the next On the first On the next On the first On the next On the first On the next On the first On the next

35,000 15,000 13

1,525 1,950

50,000 20,000 19

3,475 3,800

70,000 30,000 24

7,275 7,200

100,000 150,000 27

14,475 40,500

250,000 250,000 28

54,975

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APPENDIX 2

CS/APR2006/MAT112

LIST OF FORMULA

1.
3.

Tn = a + (n-1)d
Tn = ar n'1

2.

Sn=n[2a + (n-1)d]

4 4

o_a(r"-1) r_!
Proceeds = S(1 - dt)

5.

S = P(1 + rt)

6.

r=

1-dt

=/ rt 1-rt

9.

S=P(1+i)n
[M + jy _1~ 9- R * '

10.

r e =(1+i) m -1

11

r 1 <.

Fl-(1 A _ Rr\ /A

+ i)-nl

13.

SP = C + M

14.

GP = OE + NP

15.

NP = LP(1-d1)(1-d2)....(1-dn)

16 16

'

2ml

-B(n+1)

17.

=1 J - l

vc

18.

BVn = C(1-r) n

1Q

OPR - fR Y k\

^(^ + ^)

n(n + 1)

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