CONFIDENTIAL CS/APR2007/MAT112

UNIVERSITI TEKNOLOGI MARA

FINAL EXAMINATION

COURSE : BUSINESS MATHEMATHICS

COURSE CODE : MAT112
EXAMINATION : APRIL 2007
TIME : 3 HOURS

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of five (5) questions.

2. Answer ALL questions in the Answer Booklet. Start each answer on a new page.

3. Calculators can be used.

4. Do not bring any material into the examination room unless permission is given by the
invigilator.

5. 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 (Tax Rate Schedule For Personal Income)
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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CONFIDENTIAL 2 CS/APR2007/MAT112

QUESTION 1

a) A loan was given out on 20 August 2005 at 9% simple interest. It was paid up on 31
December 2005 with a payment of RM9.299.25. Find the loan amount using Banker's
Rule.
(4 marks)

b) Saliza saved RM1.000 in an account at 8.5% simple interest for a year. After 6
months the interest rate was reduced to 7%.

i) Find the amount in the account at the end of the first six months,
(2 marks)

ii) What is the total interest earned at the end of the year?
(4 marks)

c) Ziman received a 100-day promissory note for RM5,000 dated 10 September 2005.
The simple interest charged was 6.5%. He later discounted the note on 30 October
2005 and received proceeds of RM5.030.19. Find

i) the maturity date of the note

(3 marks)

ii) the maturity value of the note

(3 marks)

iii) the discount rate.

(4 marks)

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CONFIDENTIAL 3 CS/APR 2007/MAT112

QUESTION 2

a) A year ago Talib saved RM5.000 in an account that pays interest 8.5% compounded
semi-annually. Today, he saved another RM X into the same account. Find the value
of X if he wants to accumulate RM10,000 one year from today.
(5 marks)

b) Mariam can save her money either at 9% compounded quarterly in Bank P or at 8.5%
compounded monthly in Bank Q.

i) Find the effective rate for each of the nominal rates.

(3 marks)

ii) Which rate yields more interest?

(1 mark)

c) Amran bought a house that costs RM250.000. He paid a down payment of 30% and
took a loan at 3.5% compounded monthly to finance the balance. The loan is to be
repaid over 25 years by monthly installments.

i) Find the monthly installment.

(4 marks)

ii) Find the total interest charged.

(3 marks)

iii) If Amran failed to make the first 5 monthly payments, and the payments must be
settled on the 6th payment, how much is the total payment?
(4 marks)

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CONFIDENTIAL 4 CS/APR2007/MAT112

QUESTION 3

a) i) The first term of an arithmetic sequence is 5 and its last term is 40. If the
common difference is 1/4, find the number of terms in the sequence.
(2 marks)

ii) In a geometric sequence, the 7th term exceeds the 5th term by 48. Find the first
term if the common ratio is 2.
(4 marks)

b) Zain borrowed a certain amount of money from Bank Menang to purchase a car. He
has to repay RM880 monthly for 5 years.

i) How much did he borrow if the bank charged interest at 7!4 % per annum on the
original balance?
(4 marks)

ii) Calculate the amount of interest Zain has to pay to the bank.
(2 marks)

iii) If Zain made a 40% down payment, find the cost price of the car.
(2 marks)

c) The cash price of a speed boat is RM60.000. Under an installment plan, a buyer may
pay a 30% down payment followed by monthly payments for 5 years. If the interest is
6% on the reducing balance, calculate

i) the amount of interest using the constant ratio formula

(3 marks)

ii) the monthly payment

(2 marks)

iii) the installment price of the speed boat.

(1 marks)

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CONFIDENTIAL 5 CS/APR 2007/MAT112

QUESTION 4

a) The net price of an item after a trade discount of 10% and 5% was RM2,000. The
invoice was dated 23 June 2005 with cash terms of 3/10, n/30.

i) Find the list price of the item.

(3 marks)
ii) Calculate the last day to receive the 3% cash discount.
(3 marks)

iii) If a payment of RM1,000 was made on 1 st July 2005, calculate the outstanding
balance to be paid before the credit term ended.
(4 marks)

b) A retailer bought 25 swimming suits. A gross profit of 45% based on cost is made if
the suits were sold at RM150 each. The operating expenses were 15% based on cost.

i) Find the total cost.

(3 marks)

ii) Find the net profit if ail the suits were sold.
(3 marks)

iii) Suppose 5 suits were not sold. To sell off the remaining suits, the retailer gave
20% discount from the original selling price. Find the total gross profit.
(4 marks)

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CONFIDENTIAL CS/APR2007/MAT112

QUESTION 5

a) Sail Stationery Company bought a copying machine at RM12,000. The company

expects to use it for 5 years. It will then have a scrap value of RM2,000. Using the
reducing balance method, calculate

i) the annual rate of depreciation

(2 marks)

ii) the book value at the end of the 3rd year.

(2 marks)

b) A set of equipment for a Photo Shop was bought for RM100,000 and has a useful life
of 10 years. If the scrap value is RM10,000, calculate the depreciation for the 4th year
using

i) the sum-of-years-digits method

(3 marks)

ii) the straight-line method.

(2 marks)

c) Suhaimy and Zaidah are married with 3 children. The eldest is studying at a local
university and the other two are still in secondary schools. Their income and expenses
(in RM) for the year 2006 were as follows:

Particulars Suhaimy (RM) Zaidah (RM)

Annual Income 50,000 40,000
EPF Contributions 4,500 3,600
Life Insurance Premium 800 500
Books 600 -
Parents Medical Fees 2,000 1,000
Zakat 1,250 1,000

Calculate their tax liability for the assessment year using joint assessment.
(11 marks)

END OF QUESTION PAPER

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CONFIDENTIAL APPENDIX 1 CS/APR2007/MAT112

TAX RATE SCHEDULE FOR PERSONAL INCOME

Taxable Income
Rate Tax (RM)
(RM)

On the first 2,500 0 0

On the next 2,500 1 25

On the first 5,000 25

On the next 15,000 3 450

On the first 20,000 475

On the next 15,000 7 1,050

On the first 35,000 1,525

On the next 15,000 13 1,950

On the first 50,000 3,475

On the next 20,000 19 3,800

On the first 70,000 7,275

On the next 30,000 24 7,200

On the first 100,000 14,475

On the next 150,000 27 40,500

On the first 250,000 54,975

On the next 250,000 28

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CONFIDENTIAL APPENDIX 2 CS/APR2007/MAT112

LIST OF FORMULA

2.
1- T n = a + (n--i,d

s _a(rn-1)
3. Tn = a r " n 1 4.
r-1

5. S = P(1 + rt) 6. Proceeds = S ( 1 - d t )

d r
7. 8. d
1-dt 1 + rt

9. S=P(1+i)n 10. r e =(i+i) m -1

r(1 + i [i-d + i:
11. Q R 12. A R
i i
- -

13. SP = C + M 14. GP = OE + NP

15. NP = LP(1- I 2 )....(1-d n ) 2ml

16. r —
B(n + 1)

17. 18. B Vn = C ( 1 - r )n
vc

~k(k + 1)"
19. OPB = (R>c k ) - l
n(n + 1)

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