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CS/JAN2013/MAT112

UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION

COURSE COURSE CODE EXAMINATION TIME

BUSINESS MATHEMATICS MAT112 JANUARY 2013 3 HOURS

INSTRUCTIONS TO CANDIDATES 1. 2. 3. This question paper consists of five (5) questions Answer ALL questions in the Answer Booklet. Start each answer on a new page. 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) ii) iii) iv) the Question Paper a one-page Appendix 1 (Tax Rate Schedule for Personal Income) a one-page Appendix 2 (List of Formulae) an Answer Booklet - provided by the Faculty

4.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 4 printed pages
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CONFIDENTIAL QUESTION 1

CS/JAN2013/MAT112

a) Find the number of all terms in the sequence: -4, - 1 , 2 , 5 , . . . , 53. (4 marks) b) The sum of the first n terms of a geometric sequence is 511. If its first term is 1 and its common ratio is 2, find n. (4 marks) c) A 115-day promissory note bearing interest at 10% was discounted on 22nd September 2012 at discount rate of 5% per annum. The proceeds received was RM 35,000. If the maturity date is 12th December 2012, determine i) the date of the note (2 marks) ii) the discount period (2 marks) iii) the maturity value of the note (3 marks) iv) the bank discount (2 marks) v) the face value of the note. (3 marks)

QUESTION 2 a) Rina saved RM 15,000 in an account at 6% simple interest on 25th May 2012. Calculate the balance in her account if she withdrew RM 10,000 on 1 st July 2012. (5 marks) b) How long does it take for a sum of money to quadruple at simple interest rate of 15%? (4 marks) c) RM X was deposited in a savings account at 2.5% compounded semiannually. After seven years, RM 500 was withdrawn. Two years after the withdrawal, the balance in the account was RM 5,200. Find the value of X. (6 marks) d) RM 3,000 is invested for 5 years. The interest rate is 6% compounded every two months for the first two years and 5% compounded annually for the rest of the investment period. Calculate the amount at the end of the investment period. (5 marks)

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CS/JAN2013/MAT112

QUESTION 3 a) Raju started to save RM R every month at 3% compounded monthly. He withdrew RM 15,000 twenty years after his initial saving. If the balance was RM 21,415.10, find R. (4 marks) b) Sarah took a loan of RM 105,000 at 3.25% compounded monthly to purchase a shop. She paid equal monthly payments for 30 years. i) Find the monthly payment. (3 marks) ii) If Sarah decided to settle the loan immediately after the 300th payment, find the outstanding arrears. (4 marks) c) Zaquan plans to buy a house at RM 58,000. He has RM 8,000 as a down payment. He has two options to settle the balance:

Term of the loan Interest rate

Option A 10 years 5.5% based on the reducing balance

Option B 10 years 5.5% based on the original balance

i) Calculate the monthly payment for each option. (8 marks) ii) Which option gives a lower monthly payment? (1 mark)

QUESTION 4 a) The total trade discounts for an item after x% and 5% trade discount is RM 200. Find x if the list price is RM 1,500. (5 marks) b) The net price of a massage chair after trade discounts of 10% and 5% is RM 2,999. Find the list price. (2 marks) c) Salleh received an invoice for the purchase of 500 ceramic plates for RM 25,200 on 31 st January 2012. Trade discounts were 5% and 2% and the cash discount terms were 10/20, 5/30, n/60. He paid the invoice on 19th February 2012. He planned to sell the item by allowing 10% of cost for operating expenses and 15% of selling price for gross profit.

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CS/JAN2013/MAT112

i)

Find the payment on 19th February 2012. (3 marks)

ii) Find the selling price and the net profit for each ceramic plate. (7 marks) iii) After a few months, Salleh managed to sell 450 ceramic plates. The remaining ceramic plates were sold by allowing 20% markdown. Calculate the total sales made by Salleh if all the remaining ceramic plates were sold. (3 marks)

QUESTION 5

a)

A machine depreciates at a rate of 10%. The salvage value is RM 10,000 with 8 years of life expectancy. i) Find the cost of this machine using reducing balance method, ii) Hence, find the book value of the machine at the end of fifth year. (5 marks)

b)

Cost of a machine is RM 78,000 with 20 years of life expectancy. The difference between the book values of the machine at the end of seventh year and at the end of eighth year is RM 2,700. Use the straight line method to find the machine's scrap value. (3 marks) Adi and his wife have three children aged between 10 and 15 years old. Their annual incomes and expenses (RM) for the year 2012 are as follows: Adi 96,000 10,050 2,640 1,600 2,500 2,400 1,000 3,500 Wife 35,000 3,850 1,800 2,000 850 1,500

c)

Annual salary EPF Life Insurance Premium Donations Health Insurance Zakat Books SSPN

Assess their tax payable for the year 2012 if they choose separate assessment. (12 marks)

END OF QUESTION PAPER

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APPENDIX 1

CS/JAN 2013/MAT112

TAX RATE SCHEDULE FOR PERSONAL INCOME

Taxable Income (RM) On the first On the next 2,500 2,500 Rate Tax (RM)

0 1

0 25

On the first On the next

5,000 5,000

25 150

On the first On the next

10,000 10,000

175 300

On the first On the next

20,000 15,000

475 1,050

On the first On the next

35,000 15,000

12

1,525 1,800

On the first On the next

50,000 20,000

19

3,325 3,800

On the first On the next

70,000 30,000

24

7,125 7,200

On the first On the next

100,000 Every RM after

14,325 26

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APPENDIX 2

CS/JAN2013/MAT112

LIST OF FORMULAE

1. Tn =a + (n-l)d

2.Sn=^{2a

{n-\)d)

3.

T=ar n-\

4.
6.

S=a

,r>\

5. S = PQ + rf)

Proceeds=S(1-dt)

7. r =

\-dt

8. d =

l + rt

9. S = P(l + i)n

10. re =(! + /)" " I

11. 5 = i?

^(1 + 0 " - i A

12. ^ = i?

^ l - ( l + z)"B>

13. SP = C + M

14. GP = OE + NP 2m/ B{n +1)

15. JVP = IP(l-rf 1 )(l-rf 2 )...(! - d )

16. r = -

17. r = l - s

18.

BVn=C(l-r)n

19. OPB =

(Rxk)-I

Kn{n

+ Y)j

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