ANSWER SCHEME Maths M Term 3

1. (a) Cash price of the house = RM 230,000

Down payment = 0.1 x 230,000 = RM 23,000
Balance = RM 230,000 - RM23,000 =RM 207,000
Let R be the monthly payment .Then P is = RM 207,000
1- (1 + 0.075/12)-360
207, 000 = R
(0.075/12)
(1 )
R = RM 1,447.37
Each monthly payment is RM 1. 477.37
(1)
Total interest charged ,= (360 X 1,447.37) - 207 ,000
= RM 314,053.20
(1)
(b) To settle the four payments is
= 1,447.37
(1 + 0.075/12)4 - 1
(0.075/12)
(2)
= RM 5,843.98
Total payment for the fourth month is RM 5, 843.98

(1)

(c) Hashim needs to settle 240 payments.

A = 1,447.37

1- (1 + 0.075/12)-240
(0.075/12)

= RM 179,665.12

(2)

(1)

2. Given marginal cost function = C ' (x)

= 0.2x + 2
(a) function = C (x)
(0.2x + 2) dx
= 0.2 x2 + 2x + k
2
When production is zero, total cost = fixed cost
X = 0 , C(0) = 800
800 = 0.2 (0)2 2(0)+800
2
k = 800
C(x) = 0.1x2 + 2x + 800
(2)
(b) P(x) = R(x) - C(x)
R(x) = 200x - x2 , C(x) = 0.1x2 + 2x + 800
P(x) = 200x - x2 - (0.1x2 + 2x + 800)
= -1.1x2 + 198x -800
(2)

(c) When revenue is maximum,

R' (x) = 0
R(x) = 200x - x2
R' (x) = 200 -2x
200 -2x =0
x = 100
R''(x) = -2 (negative revenue is maximum at x = 100
R(100)= 200(100)2 _ 2(100)2
= 10,000
The maximum revenue is RM 10,000.
(2)
(d) C(x) = 0.1x2 + 2x + 800,
When x = 100, C(100) =0.1(100)2 + 2 (100) + 800
= 2,000
(1)
When x = 50, C(50) =0.1(50)2 + 2 (50) + 800
= 1,150
(1)
Increase in cost 2,000 - 1,150 = 850
The increase in cost is RM 850.
(1)
3. Let K =Number of model K tables produced
J = number of model J tables produced
Model K
Capital Expenditure
6
Labour Hours
2
Profits per Unit
RM30
To maximized profit Z = 30K +40J
Subject to
6K + 4J 240
2K + 5J 100
K,J
0
(b) Refer the graph
(6)
Corner point
(0, 20 )
(40,0)
(36.5,5.5)
(0,0 )

Model J
4
5
RM 40

Available
RM 240
100 hours

(4)
Z = 30K +40J
30(0) + 40(20) = 800
30(40) + 40(0) = 1200
30(36.5) + 40(5.5) = 1315
30(0) + 40(0) = 0

The company should produce 36.5 units of model K and 5.5 units of model J tables.
(c) The maximum profit is RM 1 312.

(1)

4. (a) Anual depreciation rate

r = 1- ( B/B0 ) 1/t
= 1 - ( 7000/27000) 1/5
= 0.23666
Rate of depreciation is 23.66 %

(1)
(1)

(b) Book value at the end of three years

B = Bo ( 1 - r ) t
= 27000 ( 1- 0.2366)
= RM 12012.14

(2)

5.Maximise
P - 10x - 12y - 8z = 0
Subject to :
2x + 2y + s1 =5
5x + 3y + 4z + s2 = 15
x, y, z ,s1 ,s2 0
(1)
Basic
p
x
y
z
s1
p
1
-10
-12
-8
0
s1
0
2
2
0
1
s2
0
5
3
4
0

s2
0
0
1

Solution Ratio test

0
5
2.5
15
5
(1)

Basic
p
y
s2

p
1
0
0

x
2
1
2

y
0
1
0

z
-8
0
4

s1
6
0.5
-1.5

s2
0
0
1

Solution
30
2.5
7.5

Basic
p
y
z

p
1
0
0

x
6
1
0.5

y
0
1
0

z
0
0
1

s1
3
0.5
--0.375

s2
2
0
0.25

Solution
45
2.5
1.875

P = 45,

x= 0

(b)
When x= 0

, y = 2.5

, z = 1.875

(2)

, y = 2.5
, z = 1.875
2x + 2y 5
2(0) + 2(2.5 ) = 5

5x + 3y + 4z 15
5(0) + 3(2.5) + 4(1.875) =
The solution is feasible.

15

(1)

Ratio test

1.875
(1)

6.
A plays 1
A plays 2

B plays 1
4
-5

B plays 2
-2
3

Row minimum
-2
-5

(a)The play safe solution is ( 1, 2) . A plays row 1 and B plays column 2.

The row maximum is -2 and the column minimax is 3. So there is no stable solution.
Thus both A and B could profit by not playing safe. So mixed strategy is played. (2)
(b) For player A
B has 2 options
B plays column 1
= 4p - 5(1- p) = 9p -5
B plays column 2 = -2p + 3(1- p) = 3 - 5p
9p -5 = 3 - 5p
14p = 8
p = 4/7
A should play row 1 with probability of 4/7 and row 2 with probability of 3/7.
The value of the game is 1/7
(2)
(b) For player B
A has 2 options
A plays row 1
= -[4q-2(1-q)] = 2- 6q
A plays row 2
= -[- 5q + 3(1- q) = 8q - 3
2- 6q = 8q - 3
q = 5/14

B should play column 1 with probability of 5/14 and column 2 with probability of
9/14
The value of the game is - 1/7
(2)

7. D = 500 units
C o = Rm 3.75
C= RM 3
Ch = Rm 0.30 per unit
Leed time = 2 days
Number of working days per year = 250
EOQ
(a) Q*

2(500) (3.75)

0.3
= 111.8 units
(2)
(b) Average inventory = Q/2 = 111.8 /2

= 55.9

Q *
Annual holding cost = Ch =RM 16.77
2
D
(c) Annual ordering cost = Co = RM 16.77
Q *

(1)
(2)
(2)

D
(d)Minimum Total annual inventory cost = C* = Co +
Q *
= RM 16.77 + RM 16.77
= RM 33.54
(2)

Reorder point
d= 500/250
=2
r = dl
=2x2
= 4 units
(2)
(f) Time between orders = 250 (111.8/500)
= 55.9 days
(3)

Q *
Ch
2

8.

(5)
(b) There are two critical paths :
A- C - G - I- M
AND A - C - H - K
The critical activities are A , C, G, H, I ,K
(c) Total float on D is 21 - 5 - 14 = 2
Total float on F is 42 - 20 - 14 = 8
(d)

(2)
(2)

(4)

(e) Day 15 activity C

Day 25 activity G , H, E, F

(2)