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AL/APR2003/MAT112

UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION

COURSE COURSE CODE DATE TIME

FACULTY SEMESTER PROGRAMME/CODE

BUSINESS MATHEMATICS

MAT112

DOCUMENT ED: 100000 ?>-\ I 6 V

26 APRIL 2003 3 HOURS (9.00 a.m-12.00 p.m)

Administration & Law / Office Management & Technology/ Hotel & Tourism Management / Business Management December 2002 - May 2003 Diploma in Public Administration / AL110 Diploma in Office Management & Technology / OM114 Diploma in Tourism Management/ HM111 Diploma in Culinary Art / HM115 Diploma in Business Studies / BM111 Diploma in Banking / BM112 Diploma in Investment Analysis / BM114 Bachelor of Business Management(Transport) / BM226 Bachelor in Corporate Administration / AL225

INSTRUCTIONS TO CANDIDATES 1. This question paper consists of five (5) questions. Answer ALL questions. Answer to each question should start on a new page. 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. Appendix I (Income Tax Table) iv. Appendix II (List Of Formulae)

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO This examination paper consists of 6 printed pages CONFIDENTIAL

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AL/APR2003/MAT112

Answer ALL questions.

QUESTION 1

Mansor borrowed RM9.500 from Public Bank. Six months later, he repaid RM10,000 for the loan. Calculate the simple interest charged.

(3 marks)
A 8-month, 6.5% promissory note for RM8.000 dated 13th May 2002 was discounted on 28th October 2002. The proceeds received was RM8.143.14. Calculate
i. the amount of discount

(4 marks) the discount period and the discount rate. (6 marks)

c. On 12th October 2001 Harold borrowed RM9.300 from Abraham. He was charged an exact simple interest rate of 9% per annum. If the maturity date was on 30th April 2002,
i. find the number of days from 12tn October 2001 to 30tn April 2002

(3 marks) ii. calculate the amount of interest that Harold has to pay. (4 marks)

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AL/APR 2003/MAT112

QUESTION 2

a.

At what interest rate compounded quarterly will RM5.000 become RM6.500 in 2 years 3 months?

(4 marks)
b. RM10,000 was invested for 5 years. The bank offered 6% compounded monthly for the first 4 years and r% compounded annually for the rest of the period. If the amount in the account at the end of 5 years was RM13.975.38 , find r.

(4 marks) c. Rahim borrowed RM70.000 from a bank for 5 years at 6% compounded monthly, i. Find the monthly payment.
(4 marks)

If he has not paid his first 3 monthly payments, how much should he pay on the 4th payment to settle all the outstanding arrears? (4 marks) Immediately after paying the 24th monthly payment, he wants to settle the balance of the debt with a single payment. How much should this payment be?
(4 marks)

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AL/APR 2003/MAT112

QUESTION 3

a.

On 25th January 2002, a retailer purchased some items listed at RM8.800 and the transportation cost was RM250. He was offered trade discounts of 25%, 15% and cash discount terms of 5/10, 2/30, n/60. Calculate the payment if he paid the invoice on 20th February 2002.

(6 marks)
b. A retailer bought a set of furniture at RM2.500. The operating expenses were 25% based on cost price. The retailer wished to obtain 40% net profit based on cost.

i.

Find the selling price. (4 marks)

ii.

Find the breakeven price. (2 marks)

iii.

What was the maximum markdown percent that could be offered without incurring a loss? (2 marks)

iv.

Was there a profit or a loss if the set was sold at RM4.000 ? (2 marks)

c.

Nana Sdn Bhd bought a few items valued at RM7,200 with a trade discount of RM200 and cash discount terms of 5/12, n/40. If the company paid RM4,000 eleven days after the date of invoice, how much was the balance ? (4 marks)

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AL/APR2003/MAT112

QUESTION 4

a.

Given a sequence 6, 12, 24, sequence.

., 3072. Find the number of terms in the (3 marks)

b.

Hasni wanted to purchase an oven and she had two options to consider.
Cash price Down payment Interest rate

Option 1 RM4040 RM200 10% on the original balance

Option 2 RM4200 RMO.OO 12% on reducing balance

The number of monthly payments for both options was 18. For each option, calculate
i. the interest charged

(4 marks)

ii. iii.

the monthly payment

(3 marks)

the instalment price.

(3 marks) Based on instalment price, which option should Hasni choose? (2 marks)

c.

For a loan of RM18.000 the monthly payment is RM436.25 for 4 years. If the loan was settled immediately after the 30th payment, calculate the outstanding principal balance (OPB) by the Rule of 78.

(5 marks)

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AL/APR 2003/MAT112

QUESTION 5

a.

Mr Jack and his wife Madam Rose have 5 children. Four of their children are still studying in school. Particulars of their income for the basis year 2002 are as follows:

Annual Income Contributions to EPF Life Insurance Premium Parents' medical expenses Donation to approved body Zakat

Jack 45,000 4,950 2,500 6,500 700 100

Rose 26,000 2,860 1,000 2,000 300 50

Calculate their tax payable for the assessment year if they elect separate assessment.

(12 marks)

b.

The cost of a machine is RM40.000 and its useful life is 10 years. Its scrap value is RM4.000. Calculate its book value at the end of 7th year using i. the reducing balance method and (4 marks) ii. the sum of years digit method. (4 marks)

END OF QUESTION PAPER

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APPENDIX I

AL/APR 2002/MAT112

TAX RATE SCHEDULE FOR PERSONAL INCOME

Taxable Income
(RM)

Rate
0% 1%

Tax (RM)
0 25

On the first On the next

2,500 2,500

On the first On the next

5,000 5,000 3%

25 150

On the first On the next

On the first On the next

10,000 10,000 5%

175 500

20,000 15,000 9%

675 1,350

On the first On the next

35,000 15,000 15%

2,025 2,250

On the first On the next

50,000 20,000 20%

4,275 4,000

On the first

70,000 30,000 25%

8,275 7,500

On the next On the first

On the next

100,000 50,000 150,000 150,000 29% 28%

15,775 14,000

On the first

29,775

Excess over

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APPENDIX I

AL/APR2002/MAT112

LIST OF FORMULAE

Tn=a

2.

3.

Tn = ar

n-1

4.

a(rn-1) = r-1

5.

rt)

6.

Proceed = S(1-dt)

7.

r=

1-dt

d=

1 + rt

9.

10.

11.

12.

S=R

13.

R-C

14.

GP = OE + NP

15.

16.

18.

BVk=C(l-r)*

19.

OPB = Unpaid payments - I

'k(k
n(n

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