Exercise No 8 BCOM Business Math Punjab University

Exercise No: 7 Percentages Permutation & Combination
(7.1)
Express as percents:
(i)
1
2
= 0.5 x 100 = 50%
(ii)
3
5
= 0.6 x 100 = 60%
(iii)
3
25
(iv)
1
2
= 0.12 x 100 = 12%

= 3/2 = 1.5 x 100 = 150%
(v)
1
2 4
(vi)
1
50
= 0.02 x100 = 2%
(vii)
8
10
= 0.8 x 100 = 80%
(viii)
1
4
= 9/4 = 2.25 x 100 = 225%
= 0.25 x 100 = 25%

(7.2)
Express the decimals as percents:

(i)
(ii)
(iii)
(iv)
0.25
0.06
0.89
0.17
= 0.25 x 100 = 25%

= 0.06 x 100 = 6
= 0.89 x 100 = 89%
= 0.17 x 100 = 17%
(7.3)
Express following percents as fractions:

(i)
(ii)
50%
25%
50
100
25
100
1
2
1
4
Prepared & Selected By Iftikhar Ali Msc Economics (AIOU), Certification in Chinese History & Political
Economy Howard University, Behavioral Economics (Toronto University), Globalization (Howard
University), American Capitalism (Cornell University), Student of CMA (Certified Management
Accountant) Institute of Cost & Management Accountancy Pakistan. Teaching at Punjab College of
excellence in Commerce Kamra Cantt
(iii)
16%
16
100
(iv)
230%
230
100
(v)
87
1
2
(vi)
20%
(vii)
4%
(viii)
99%
%
=
=
20
100
=
4
25
23
10
175
2
1
5
4
100
1
100
175
200
7
8
1
25
99
100
(7.4)
Express these percents as decimals:
(i)
15% =
15
100
= 0.15
(ii)
85% =
85
100
= 0.85
(iii)
12
(iv)
1
6 4
1
2 % =
25
2
1
100
25
200
= 0.125
% =
25
4
1
100
25
400
= 0.625
(7.5)
Find:
(a) 5% of 200
= Base x Decimal Rate = 200 X 0.05 = 10
(b) 6% of 180 = Base x Decimal Rate = 180 X 0.06 = 10.8

(c) 12% of 15 = Base x Decimal Rate = 15 X 0.12 = 1.80
(d) 23% of 4500 = Base x Decimal Rate = 4500 X 0.23 = 1035
(e) 85% of 400 = Base x Decimal Rate = 400 X 0.85 = 340

(f)
3
4
% of 2000 = Base x Decimal Rate = 2000 X 0.75 = 1500

(7.6)
What percent of the second number is the first number?

(i)
40 ; 80
= Percentage% =
Number
Base
(ii)
60; 80
= Percentage% =
Number
Base
60
80
= 0.75 = 0.75 X 100 = 75%
(iii)
150; 200
= Percentage% =
Number
Base
150
200
= 0.75 = 0.75 X 100 = 75%
(iv)
12; 48
= Percentage% =
Number
Base
12
48
= 0.25 = 0.25 X 100 = 25%
(iv)
146; 292 = Percentage% =
Number
Base
146
292
(v)
24; 96
Number
Base
24
96
= Percentage% =
40
80
= 0.5 = 0.5 X 100 = 50%
= 0.5 = 0.5 X 100 = 50%
= 0.25 = 0.25 X 100 = 25%
(7.7)
If 5% of a number is 60, what is the number?
Number =
Percentage of Number (100)

Rate
60 (100)
5
6000
5
= 1200
(7.8)
If
1
2
% of a number is 82.46, what is the number?
Number =

Rate
82.46(100)
1/2
8246
0.5
= 16492
(7.9)
If 45% of number is 3000, what is the number?
Number =

Rate
3000 (100)
45
300000
45
= 6666.67
(7.10)
If 4.6% of a number is 460, what is the number?
Number =

Rate
460(100)
4.6
46000
4.6
= 10000
(7.11)
If 0.2% of a number is 1467.24, what is the number?
Number =

Rate
1467.24 (100)
2
146724
2
= 7336.35
(7.12)
Mr. Khalid bought a radio for Rs. 1200 and he sold it for Rs. 1425. Find his percent profit.
Profit = Selling Price Cost Price = 1425 1200 = 225 so 225 is our number and 1200 is base. Now put
the percentage formula which is below:
Percentage% =
Number
Base
225
1200
= 0.1875 = 0.1875 x 100 = 18.75%

(7.13)
Mr. Noor Muhammad gets 15% profit from his investment. He gets Rs.400 as net profit, find his
investment.
Investment =
Percentage of Profit (100)

Rate
400(100)
15
40000
15
= 2666.67
(7.14)
If 7% of the amount is Rs.490. Find the amount.
Total Amount =
Percentage of Amount (100)

Rate
490(100)
7
49000
7
= 7000
(7.15)
The selling price of a steel cabinet is Rs. 840, and the gross profit is 10% of the cost. Find the cost.
It means that cost & profit both are included in selling price so if selling price is 840 and profit is 10%,
then:
840
110
= 7.637 so cost price will be 7.637 x 100 = 763.7

(7.16)
Find the selling price of typewriter which costs Rs. 4000 and the mark up is 8%.
100% cost price of typewriter is 4000 if there is 8% mark up then total selling price will be:
Selling price =
4000
100
x 108 = 40 x 108 = 4320

(7.17)
A man sold a fountain pen for Rs. 125. His profit was 30% of his original purchase price. What was
his purchase price?
Selling price = 125, His profit is included in selling price which is 30%, so his purchase price will be:
Purchase price =
125
130
x 100 = 0.9616 x 100 = 96.16

(7.18)
Find the selling price of a piece of furniture whose cost of production is Rs. 1400 and percentage
mark up is 35%. What is the amount of profit?
If cost of production is 1400 and mark up is 35% above the cost then selling price will be:
Selling Price =
1400
100
x 135 = 14 x 135 = 1890
Profit = selling price cost price = 1890 1400 = 490

(7.19)
What is the cost of colored SONY TV? Set which is sold for Rs. 9800, if the percent markup is 40% on
cost.
Follow above questions
(7.20)
After a markup of 25% on sales a watch is sold for Rs. 1000.
(i)
(ii)
What is its cost price?

What is the percent markup on sales if the cost price of watch has been Rs. 700?
Follow above questions
(7.21)
A and B together invest Rs.52000 in a small business. As share of investment is 36% of this
amount. Find out Bs investment in this business.
52000 x 0.36 = 18720 which is As Share so Bs Investment will be 52000- 18720 = 33280
(7.22)
Last month a stores sales were Rs.25000 and this month the sales are Rs.45230. Find out the
percentage increase in sales.
Percentage% =
Number
Base
45230
25000
= 1.8092 = 1.8092 x 100 = 180.92%
Increase in sales = 180.92 100 = 80.92%
(7.23)
A retail store sold an article at 25% more than its cost. What was the selling price if the cost of the
article was Rs.60?
60
100
x 125 = 0.6 x 125 = 75 is selling price

(7.24)
A, B and C together invest in a business. A gets 50% of the total profit, B 30% of the remaining
profit and C 60% of the balance. Any amount left out is equally divided among the three partners.
If C gets in all Rs. 150, find the total profit.
Let the total profit = 100

50
A gets 50% = 100 x 100 = Rs 50
B gets 30% of remaining = (100 50)0.30 = 50 (0.30) = Rs 15
C gets 60% of the balance = (100 50 15)0.60 = 35 (0.60) = Rs 21
Remaining amount = (100 50 15 21) = Rs 14 divided equally = 14/3 = Rs 4.67 for each
As C gets Rs 21 then total amount he gets = 21 + 4.67 = 25.67
If C gets Rs 150 then total profit will be:
Total profit =
150 (100)
25.67
= 584.34
(7.25)
A,B and C are in partnership. A gets 40% of the total profit, B 50% of the remaining profit and C
80% of the balance. Any amount left out is equally divided among the three partners. If C gets in
all Rs. 130, find the total profit.
Same as above
(7.26)
Sultan Ahmad purchased merchandise for Rs. 7500. He was allowed a trade discount of 7%. Find
the amount of discount.
Total purchase price = 7500
Trade discount is 7% on 7500 = 7500 (0.07) = 525
(7.27)
Mr. Naveed purchase 50 books of Economics from Kitab Markaz Faisalabad. The printed price of
each book is Rs. 35.00. If a trade discount of 15% is allowed to him find the discount and net price
of the books.
Total sale price of books = 50 x 35 = 1750
Trade discount is 15% on 1750 = 1750 (0.15) = 262.50
Net price of books = 1750 262.50 = 1487.5
(7.28)
1
A man paid Rs. 555 for a radio set after 7 2
% discount had been deducted. What was the
market price of the set?

Amount Paid = 555
Trade Discount = 7.5% (means man paid 100 7.5 = 92.5% of market price of 100%)
Market Price of a Radio Set =
555
92.5
x 100 = 600
(7.29)
Chaudry traders dealing general goods, sold the following articles to a customer, Mr. Khalid.
(a) Powder Tibet small 3 dozens @Rs. 84 per dozen.
(b) Powder Ponds small 5 dozens @Rs. 60 dozen.
(c) Black Rose hair color 25 bottles @Rs. 20 per bottle.
(d) Lipstick 30 pieces @Rs. 10 per piece.
(e) Hair pins 20 dozens @Rs.5 Per dozens.
1
Mr. Khalid was allowed 7 2
% trade discount. Find the net amount payable to chaudry
traders.
Follow the above Question of Trade discount
(7.30)
Raja Corporation purchased cycles worth Rs. 11400 from Khan Cycle Store. He settled his account
after deducting 6% cash discount. Find the net amount paid to Khan Cycle Store.
Simply take 6% on 11400 and deduct it from the purchase price
(7.31)
1
On the purchase of a car the dealer allowed to a customer discount at the rate of 4 2
% . Find out
the total price of a car and amount paid to dealer, if the discount allowed was Rs. 6000.
Same as above
(7.32)
An importer buys goods at 20% discount but an import duty at 20% on the cost. If the other expenses
amount to 5% of the landed cost, by how much percent should be goods he marked above list price so
as to gain 20% on the total cost.
Let the list price = Rs 100
Discount = Rs 20
Cost Price = Rs 80
Duty on Cost at the rate of 20% = 80 (0.20) = Rs 16
Landed Price = 80 + 16 = Rs 96
Expenses at 5% on landed price = 96 (0.05) = Rs 4.80

Total Cost = 96 + 4.80 = Rs 100.80
Profit 20% at total cost = 100.80 (0.20) = Rs 20.16
Selling Price = 120.96 in which List price is Rs 100 and Difference is 20.96
(7.33)
A merchant in Lahore buys some radio sets from Karachi Co. The catalogue price of which is Rs. 600
per set. The trade discount allowed to him by the Karachi Company is. 15% on the catalogue price.
1
The freight and other charges amount to 2 2 % of the catalogue price. The Lahore merchant sells
each set at 10% discount on his list price of Rs. 750, thus making a net profit of Rs. 1350. Find the
number of radio sets bought.
Catalogue Price of radio sets = 600
Trade discount 15% = 600 (0.15) = 90
Catalogue price after deducting trade discount = 600 90 = 510
Freight & other charges at the rate of 2.5% on catalogue price = 600 (0.025) = 15
Total Cost = 510 + 15 = 525
List Price of a set = 750
Discount at the rate of 10% = 750 (0.10) = 75
List Price after deducting discount = 750 75 = 675
Profit for each set = list price per set total cost per set = 675 525 = 150
Number of sets he bought = Total profit/Profit per set = 1350/150 = 9 sets
(7.34)
A T-shirt marked at Rs. 145 was sold for Rs. 100 in a clearance sale. Find the rate of discount.
Rate of Discount =
145100
145
x 100 =
45
145
x 100 = 31.034
(7.35)
A furniture dealer paid Rs. 10,000 for 50 lawn chairs on which he had been given discount of 12%.
Find the price of a lawn chair.
Per Chair Price after deducting 12% discount =
10000
50
= 200 Per Chair
Price per chair before deducting 12% discount =
200
88
x 100 = 227.2727
(7.36)
Mr. Zahoor allows 10% trade discount and 3% cash discount. Find the net amount to the cost, find out
the cost price of the air cooler.
Data is missing
(7.37)
An air cooler marked at Rs. 5000. A trade allows a discount of 4%. If he still gains 10% on the cost,
find out the cost price of the air cooler.
Same as above
(7.38)
A property changed hands three times and at each time the loss to the seller was 10%. If in the last
transaction the loss was Rs. 405, find out the original value of the property.
Let the price of property = 100
Loss in first selling = 100 (0.10) = 10
Loss in second selling = 90 (0.10) = 9 where 90 = (100 10)
Loss in third time selling = 81 (0.10) = 8.10
405(100)
If loss is 405 in last transaction the original price is =
8.10
= 5000
(7.39)
A car changed hands three times and at each time the profit to the seller was 8%. If in the last
transaction the profit was Rs. 5,000, find the original price of car.
Same as above
(7.40)
A house was sold for Rs. 78,350. The property dealer was allowed a commission of 2%. Find out his
commission.
Same as above
(7.41)
1
A commission agent entitled a commission of 6 4
% on the gross sale. Find out his commission if he
sold merchandise for Rs. 7425.

Simple Percentage
(7.42)
1
A merchant gives his agent 10% ordinary commission plus 3 3
% deleredere on the sale of goods
worth Rs. 4260. How much does he receive after paying the agents remuneration?
Simple Percentage
(7.43)
A commission agent entitled a commission of 8% on total sales made by him plus a bonus
1
4
% on
the excess of his sales over Rs. 10,000. If his income is Rs. 1250, find the value of the goods sold by him.
Total Income = 1250 in which:
8% commission on amount 10000 = 10000(0.08) = 800
Bonus Commission = 1250 800= 450
On every extra 100 Rs sales agent receives 8% plus % = 8.25% portion of commission of total amount
which means that 450 Rs is a 8.25 portion of 100 percent so the total extra amount will be:
450
Extra amount of sales = 8.25 x 100 = 5455
Total Sales = 10000 + 5455 = 15455
(7.44)
A salesman is paid a salary of Rs. 500 a month and 1% commission on sales. If his total income in one
month is Rs. 750, find the value of his sales in that month.
Total Income = 750 in which:
Monthly Salary Amount = 500
Commission Amount = 750 500 = 250 which is 1% of sales then 100% amount of sales will be:
250
Total Sales =
x 100 = 25000
1
(7.45)
1
A salesman is paid a salary of Rs. 1800 a month and 2% on sales or only a commission of 6 2
% on
sales. If in one month his income under both alternatives is same, find out the value of his sales in that
month.
6
1
2
of sales = 1800 + 2% of sales
1
2
x 2x = 1800
1
2
x= 1800
9
2
x= 1800
4.5x = 1800 x =
1800
4.5
x = 400
Total Value of Sales = 400 x 100 = 40000
(7.46)
At 5% rate of commission, Miss Nelson, a sales girl got Rs. 250 on the sale of talcum face powder. Find
the value of her sales. If the price of face powder was Rs. 2.50 per container, how many containers did
she sell?
Total sales =
250
5
x 100 = 5000
Total Containers at 2.50 per container =
5000
2.5
= 2000 Containers
(7.47)
Find the total amount of commission on sale to Rs. 8000, if the commission rate is 8%.
Simple Percentage
(7.48)
A businessman instruct the agent to by 50 cycles at Rs. 1200 per cycle and to sell them at Rs. 1325 each.
If agent charge 2% commission on the purchase and 2% on sales. Find the total commission on
purchase and sale. Also find the amount of profit made by businessman.
Purchase Price of Cycles = 1200 x 50 = 60000
Commission on Purchase Price = 60000(0.02) = 1200
Sales Price of Cycles = 1325 x 50 = 66250
Commission on Sale Price = 66250(0.02) = 1325
Total Commission = 1200 + 1325 = 2525
Profit = Difference between Sale & Purchase Price Total Commission
Profit = (66250 60000) 2525 = 6250 2525 = 3725
(7.49)
3
Mr. Zia Hussain allowed the salesman 6% commission on total sales made by him plus a bonus 4
% on the excess of his sales over Rs. 10,000. If his total earnings are Rs. 1140. Find the value of the
goods sold by him.
6% Commission on 10000 = 10000(0.06) 600
Commission on extra sale = 1140 600 = 540
As we know that 540 is 6% plus 0.75% total 6.75% of extra sales then extra sales will be:
540
Sales above 10000 = 6.75 x 100 = 8000
Total Sales = 10000 + 8000 = 18000
(7.50)
In 1990, a salesman was paid 5% commission on sales. In 1991, the rate was increased to 6% and his
sales also increased by Rs. 2000. If his remuneration in 1991 exceeded that 1990 by Rs. 220, find out
the value of goods sold by him in each year.
6% commission on increased sale = 2000(0.06) = 120
1% on sale of 1990 = unknown
Both commission are = 220
120 + 1% on sale of 1990 = 220
1% on sale of 1990 = 220 120 = 100
If 1% commission on sale is = 100 then total sales of 1990 = 100 x 100 = 10000
Sales of 1991 = Sale of 1990 + Increased Sale of 2000 = 10000 + 2000 = 12000
Exercise No: 8
(8.1)
Find the simple interest and amount for the following:
(i)
(ii)
(iii)
Rs. 2000 for 3 years at 5%.

Solution
(i)
(ii)
(iii)
Interest I =
P xr x t
100
2000 x 5 x 3
100
30000
100
= 300
Same as above
Same as above
(8.2)
How much money will amount to Rs. 900 in 4 years at 7%?
Same as above
(8.3)
Find the interest and amount for Rs. 2000 for 3 months at 6%.
Same as above
(8.4)
Mr. Asghar borrowed Rs. 5000 for 5 years at 8% simple interest. How much he will repay?
Same as above
(8.5)
Calculate the simple interest on Rs. 11000 for 7 years at 4
(iv)
Interest I =
P xr x t
100
11000 x 4.5 x 7
100
346500
100
1
2
%.
= 3465
(8.6)
1
2
Mr. Bashir Ahmad borrowed Rs. 4500 from Habib Bank at 8
and lent the whole amount at 10 %
the same day, what would he gained from this after 4 years.
Same as above
(8.7)
Khalid Mahmood borrowed Rs. 2500 from Sultan for 3
1
2
years at simple interest at 8 % per
annum. How much Khalid Mahmood has to pay at the end of the period.
Same as above
(8.8)
What sum would borrow in Rs. 1250 as simple interest at 3 % in 3 years?
Principal P =
I x 100
r xt
1250 x 100
3x3
125000
9
= 13889
(8.9)
Find the principal, if the amount for 5 years at 5% is Rs. 5550.
Principal P =
A x 100
100+(r x t)
5550 x 100
100+(5 x 5)
555000
125
= 4440
(8.10)
How much should Mr. Arif borrow from Mr. Hanif so that he may have to repay Rs. 4425 after 3 years
if Hanif charges a simple interest rate 5%?
Same as question 8.9
(8.11)
How much should Mr. Maqbool borrows from a bank so that he may have to repay Rs. 2800 after 2
years if the bank charges a simple interest rate 4%.
Same as question 8.9
(8.12)
Find the sum of money that amount to Rs. 2775 in five years Nine months at 4%.
Principal P =
A x 100
100+(r x t)
2775 x 100
100+(4 x 5.75)
277500
123
= 2256.09
(8.13)
What sum of money put out at simple interest would become Rs. 420 in 2
Principal P =
I x 100
r xt
420 x 100
9/2 x 8/3
42000
12
2
3
years at 4
1
2 %?
= 3500
(8.14)
At what rate of interest, would Rs. 1800 amount to Rs. 2500 in 2 years.
Total amount of interest for two years = Amount Principal = 2500 1800 = 700
Rate of Interest r =
I x 100
P xt
700 x 100
1800 x 2
70000
3600
= 19.45%
(8.15)
Find the rate percent of interest, if the simple interest on Rs. 21540 for 4 years and 9 months is Rs.
5000.
I x 100
P xt
5000 x 100
21540 x 19 /4
5000 x 100 x 4
21540 x 19
= 4.89%
(8.16)
At what rate of interest would a sum of money becomes one and a half in 10 years.
Let the sum = 100
If I interest becomes one and half amount A will become after 10 years = 150
So I = 50, A = 150, Principal = 100, t = 10 then rate will be:
I x 100
50 x 100
5000
= 100 x 10 = 1000 = 5%
P xt
(8.17)
How long will it take for Rs. 1000 to amount Rs. 1180 at 6% per annum simple interest.
Principal P = 1000, Amount A = 1180, I = A P = 1180 1000 = 180, r = 6 then t will be:
Time t =
I x 100
P+r
180 x 100
1000 x 6
18000
6000
= 3 Years
(8.18)
1
2
If the simple interest on Rs. 7500 at 5
% be Rs. 1680, find the time.
Same as above
(8.19)
In what time would the simple interest on Rs. 20000 be Rs. 4000 at 3
1
3
%?
Same as above
(8.20)
In how many years would a sum lent at 8% be doubled?
Let the principal P = 100 If after the time Amount will be doubled than A = 200, I = 200 100 = 100
r = 8, then time will be:
Time t =
I x 100
P+r
100 x 100
100 x 8
10000
800
= 12.5 Years
(8.21)
Find the compound interest on Rs. 8000 for 3 years at 5% per annum.
Principal Amount P = 8000, r = 5, n = 3
r
5
105
1+
1+
Amount A = P
100 = 8000
100 = 8000 100 = 8000(1.05) = 9261
[ ]
Compound Interest = A P = 9261 8000 = 1261

(8.22)
Find the amount at compound interest of Rs. 12000 at 6% per annum for 2 years and 6 months. Also
find the compound interest.
Principal P = 12000, If t is 2 years and 6 months then its semi annually and it will be n = 5 then r = 3
r
3
1+
1+
Amount A = P
100 = 12000
100 5 Calculate
(8.23)
Find the amount of Rs. 10000 for 2 years at:
(a) Compounded annually.
(b) Compounded semi annually.
(a)
(b)
(c)
(c) Compounded quarterly.

P = 10000 , n = 2, r = 4
P = 10000 , n = 4, r = 2
P = 10000 , n = 8, r = 1 Calculate
(8.24)
A man deposits Rs. 500 at the time of his sons birth, in an investment that pays 4% compounded semi
annually. How much will be on deposit on the sons 21st birthday.
P = 500, r = 4% compounded semi annually r = 2%, n = 42
r
2
102
1+
1+
Amount A = P
=
500
42
=
500
100
100
100
[ ]
= 500(1.02)42
Let x = (1.02) 42
Taking Log of both sides
Log x = 42 log (1.02)
Log x = 42 (0.0086001717)
Log x = 0.361207214
Taking antilog of both sides
X = 2.29724466
Amount A = 500 (2.29724466) = 11448.62
(8.25)
Mr. Aslam has invested Rs. 25000 at 6% compounded annually. What amount would be received after
4 years?
P = 25000, r = 6, n = 4 Calculate
(8.26)
On a saving bank account Bank-A pays 6% interest compounded annually, while Bank-B pays 6%
interest compounded semi annually on a deposit of Rs. 2000, how much more interest will be earned in
3 years at Bank-B as compared to Bank-A.
Bank A Data P = 2000, r = 6, n = 3
Bank B Data P = 2000, r = 3 because of Semi Annually, n = 6 Calculate both and trace the difference
(8.27)
What would an investment of Rs. 3000 at 6% compounded quarterly amount to in 5 years.
P = 3000, if yearly r = 6 then quarterly will be 1.5, n = 20 because there are 4 quarters in 1 year.
Follow question No 24
(8.28)
Find the principal of Rs. 9628.20 due at the end of 8 years if money is worth 6% compounded semi
annually.
Amount = 9628.20, n = 8x2=16 because of semi annually, r = 3 because of semi annually
P=
A
r
( 1+
)
100
P=
9628.20
3
( 1+
)16
100
P=
9628.20
(1.03)16
Let x = (1.03)16
Taking log of both sides log x = 16 log of (1.03) log x = 16 (0.012837224)
Log x = 0.205395584 Taking antilog of both sides x = 1.604706397
So P =
9628.20
1.604706397
= 6000
(8.29)
The compound interest for 5 years at 5% is Rs. 1000. Find the principal.
Let Suppose P = 100, n = 5, r = 5 then A will be:
Amount A = P
1+
r
100
= 100
1+
5
100
5 = 100 (1.05) power5 = 100 (1.276281563) = 127.7281563
Compound Interest = A P = 127.7281563 100 = 27. 7281563 then
P=
100 x C . I
Assumed C . I
] [
=
100 x 1000
27. 7281563
] [
=
100000
27. 7281563
= 3606
(8.30)
In how many years a sum of Rs. 1000 would amount Rs. 1350 at 4% compounded interest.
P = 1000, A = 1350, r = 4%, n =?
n=
logAlog P
r
log(1+
)
100
Calculate
(8.31)
In how many years a sum of Rs. 5560 would amount Rs. 7000 at 8% interest compounded semi
annually.
P = 5560, A = 7000, r = 8% semi annually 4%, n =?
n=
logAlog P
r
log (1+
)
100
Calculate
(8.32)
At what rate of interest compounded per annum for 5 years will Rs. 2000 amount to Rs. 2550?
P = 2000, A = 2550, n = 5, r =?
[ ]
r
100
P
log Alog
1
= Antilog
1
n
[ ]
P
log Alog
= Antilog
1
[ ]
2000
log 2550log
= Antilog
1
[ ]
r
100
= Antilog
3.406543.30103
1
5
[ ]
= Antilog
0.10551
1
5
[ ]
= Antilog (0.021102) 1
[ ]
= 1.049788957 1
[ ]
= 0.049788957
r
100
r
100
r
100
r
100
r
100
r
100
r = 0.049788957 x 100
r = 4.9788957 or 5%
(8.33)
1
At what rate of interest compounded quarterly for 2 2
1
P = 2500, A = 3900, n = 2 2
quarterly then it will be n = 10, r =?
[ ]
r
100
P
log Alog
1
= Antilog
1
n
[ ]
P
log Alog
= Antilog
1
r
100
years will Rs.2500 amount to Rs. 3900.
Calculate
(8.34)
1
Find the difference between the compound and simple interest on Rs. 1500 for 3 years at 4 2
%.
P = 1500, t or n = 3, r = 4.5
For Simple Interest
For Compound Interest
Interest I =
P xr x t
100
Amount A = P
1+
r
100
(8.35)
What is the difference between the compound and simple interest of Rs. 15625 for 4 years at 4%.
P = 15625, t or n = 4, r = 4
For Simple Interest
Interest I =
For Compound Interest
P xr x t
100
Amount A = P
1+
r
100
(8.36)
If the difference between the simple and compound interest for 3 years at 5% is Rs. 61. Find the
principal.
Let Suppose P = 100, r = 5, t or n = 3
Simple Interest
Interest I =
Compound Interest
P xr x t
100
Amount A = P
1+
= Interest I =
r
100
100 x 5 x 3
100
= A = 100
1+
1500
100
5
100
= 15
power 3
A = 100 (1.05)= 115.7625

Compound Interest = A P = 115.7625 100 = 15.7625
Difference between Compound & Simple Interest = 15.7625 15 = 0.7625
If difference is 61 then the Principal will be:
P=
100 x 61
0.7625
= 8000
(8.37)
The difference between the simple and compound interest on a certain sum is Rs. 2.50 for 2 years at
5%. Find the sum.
Same as above
(8.38)
A sum of money was borrowed and paid back in two equal annual installments of Rs. 882, allowing 5%
compounded interest. What was the sum borrowed.
(8.39)
Govt. College Faisalabad had 3000 students on 10th December, 1970. If the number of students increases at a
compound rate of 8% every year what should be the number of students in the college on 10th December,
1985.
(8.40)
Find the value of a type writer costing Rs. 1700 at the end of 5 years, if depreciation at 4% per annum.
(8.41)
A machine in shoes factory is purchased for Rs. 8500. After 8 years useful life its scrap will be Rs. 3000.
Find the depreciation rate.
(8.42)
The machinery in a factory is purchased for Rs. 50000. Rate of depreciation is 6%. After how many years, its
value will be Rs. 20000.
Exercise No: 9
(9.1)
Rs. 500 a year for ten years at 4% compounded annually.
(9.2)
Rs. 800 a quarter for 5 years at 4% compounded quarterly.
(9.3)
Rs. 100 a month for 5 years at 6% compounded monthly.
(9.4)
A man invests Rs. 300 at the end of each month in a fund which pays 4% compounded semiannually. How
much does he have just after the tenth deposit.
(9.5)
Find the amount of Rs. 250 invested at the end of each of 5 successive years at 6% interest compounded
annually.
(9.6)
Miss Nasima saved Rs. 540 per year which she deposited in a saving bank at the end of each year. If the bank
paid 2% interest compounded annually on all deposits, what the amount on deposit at the end of 11 years?
(9.7)
Mr. Khalid wishes to save money to take a trip. If he deposits Rs. 150 at the end of each month for 24 months
in an investment that pays 12% compounded monthly, how much will he have on deposit.
(9.8)
Find the amount of an ordinary annuity of Rs. 4400 per quarter for 5 years at the rate of 16% per annum
compounded quarterly.
(9.9)
Mrs. Khurshid deposit Rs. 5555 at the end of each six months for 4 years and 6 months at 10% compounded
semiannually. Find the amount of the investment.
(9.10)
Find the accumulated value of Rs. 5000 invested at the end of each quarter year for 5 years at 8%
compounded quarterly.
(9.11)
A man sets aside Rs. 200 at the beginning of each year towards a fund for his sons college education. If the
money is invested at 4% per year, how much will he accumulated at the end of 10 years?
(9.12)
If a payment of Rs. 500 is made today and a like payment each year for 5 years, how much will be on deposit
at the end of 4 years, if the interest rate is 5% compounded annually.
(9.13)
How much money would be accumulated at the end of 23 years by a man if he invested Rs. 325 on the first
day of each year at 4% interest compounded annually?
(9.14)
On his fifty first birthday and each third month thereafter, Dr. Habib Ullah invested Rs. 475 at 4% interest
compounded quarterly. At the end of his fifty seven year, what was the amount on deposit?
(9.15)
Mr. Aslam bought a SONY T.V. by paying Rs. 350 each month for 12 months, beginning from now. If money
is worth 12% compounded monthly, what was the selling price of the T.V. on each payment?
(9.16)
Find the amount of an annuity due of Rs. 200 paid at the beginning of each 6 month period for 8 years if the
interest rate is 6% compounded semiannually.
(9.17)
A house is rented for Rs. 900 per month, with each months rent payable in advance. If the interest rate is
12% compounded monthly and the rent is deposited in an account, what is the amount of rent for one year?
(9.18)
Find the present value of an annuity of Rs. 100 paid at the end of each year for 17 years if the interest rate is
7% compounded annually.
(9.19)
Find the present value of an annuity of Rs. 100 paid at the end of each year for 8 years if the interest rate is
8% compounded semiannually.
(9.20)
A man wishes to deposit enough money today so that his son can withdraw Rs. 2500 at the end of each year
for ten years. How much he deposit, if the interest rate is 6% compounded annually.
(9.21)
What is the present value of an annuity if the size of each payment is Rs. 2000 payable at the end of each
quarter for eight years at an interest rate of 7% compounded quarterly?
(9.22)
What is the present value of an annuity of Rs. 300 per year if the first payment is received today and yearly
for a total of 10 consecutive payments, and money is worth 5% interest compounded annually?
(9.23)
The amount of an annuity for 12 years is Rs. 80000. What would be the size of the quarterly installment if
the interest rate is 12% compounded quarterly?
(9.24)
Mr. Amjad wants to accumulate Rs. 60000 in 8 years. He makes equal deposits at the end of each 6 months in
an account. The rate of interest is 8% compounded semiannually. Find the value of each deposit.
(9.25)
Mr. Latif borrowed Rs. 200,000 from his friend to purchase a car. He promised to pay back the loan in
semiannual equal installments in 3 years with interest rate at 8% compounded semiannually. If first payment
is start at the end of first six monthly periods, what would be the amount of each installment?
(9.26)
How many semi annually payments of Rs. 200 each to in a bank in the form of an ordinary annuity will
accumulate Rs. 6000 if the interest rate is 8%.
(9.27)
The cash price of a car is Rs. 150000. If the interest rate is 24% compounded quarterly. How many quarterly
payments he will take to pay off car, when quarterly payments of Rs. 15000 are made.
(9.28)
Mr. Usman wants to deposit his savings of Rs. 48000 in a bank. The bank offers 8% interest compounded
semi annually. Find the number of withdrawals, if he draw Rs. 2400 at the end of each six months.
(9.29)
Mr. Zahid invests Rs. 540 at the end of each month amounts to Rs. 12644 in 1
1
2
year. Find the nominal
rate of interest.
(9.30)
An annuity of Rs. 8800 payable at the end of each year amounts to Rs. 120000 in 10 years. Find the interest
of the annuity.
(9.31)
The GO Company is expected to pay Rs. 4.0 every six months on a share of its stock what is the present
value of this stick if money is worth 5% compounded semi annually?
(9.32)
Find the present value of a companys stock, which is expected to pay Rs. 200 every three month, if money is
worth 6% compounded quarterly.

Exercise No 8 BCOM Business Math Punjab University

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Exercise No 8 BCOM Business Math Punjab University

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Exercise No: 7 Percentages Permutation & Combination

= 0.5 x 100 = 50%

= 0.6 x 100 = 60%

= 0.12 x 100 = 12%

= 0.8 x 100 = 80%

= 9/4 = 2.25 x 100 = 225%

= 0.25 x 100 = 25%

Express the decimals as percents:

= 0.25 x 100 = 25%

Express following percents as fractions:

= Base x Decimal Rate = 200 X 0.05 = 10

(b) 6% of 180 = Base x Decimal Rate = 180 X 0.06 = 10.8

(e) 85% of 400 = Base x Decimal Rate = 400 X 0.85 = 340

% of 2000 = Base x Decimal Rate = 2000 X 0.75 = 1500

What percent of the second number is the first number?

= 0.75 = 0.75 X 100 = 75%

= 0.75 = 0.75 X 100 = 75%

= 0.25 = 0.25 X 100 = 25%

146; 292 = Percentage% =

= 0.5 = 0.5 X 100 = 50%

= 0.5 = 0.5 X 100 = 50%

= 0.25 = 0.25 X 100 = 25%

Percentage of Number (100)

% of a number is 82.46, what is the number?

Percentage of Number (100)

Percentage of Number (100)

Percentage of Number (100)

Percentage of Number (100)

= 0.1875 = 0.1875 x 100 = 18.75%

Percentage of Profit (100)

Percentage of Amount (100)

= 7.637 so cost price will be 7.637 x 100 = 763.7

x 108 = 40 x 108 = 4320

x 100 = 0.9616 x 100 = 96.16

x 135 = 14 x 135 = 1890

Profit = selling price cost price = 1890 1400 = 490

What is its cost price?

= 1.8092 = 1.8092 x 100 = 180.92%

Increase in sales = 180.92 100 = 80.92%

x 125 = 0.6 x 125 = 75 is selling price

Let the total profit = 100

% discount had been deducted. What was the

market price of the set?

Market Price of a Radio Set =

% trade discount. Find the net amount payable to chaudry

Expenses at 5% on landed price = 96 (0.05) = Rs 4.80

= 200 Per Chair

Price per chair before deducting 12% discount =

% on the gross sale. Find out his commission if he

sold merchandise for Rs. 7425.

% deleredere on the sale of goods

of sales = 1800 + 2% of sales

Total Containers at 2.50 per container =

Rs. 2000 for 3 years at 5%.

Mr. Bashir Ahmad borrowed Rs. 4500 from Habib Bank at 8

and lent the whole amount at 10 %

years at simple interest at 8 % per

If the simple interest on Rs. 7500 at 5

% be Rs. 1680, find the time.

Compound Interest = A P = 9261 8000 = 1261

(c) Compounded quarterly.

5 = 100 (1.05) power5 = 100 (1.276281563) = 127.7281563

Compound Interest = A P = 127.7281563 100 = 27. 7281563 then

quarterly then it will be n = 10, r =?