CONFIDENTIAL iS CSISEP 2013/MAT112 UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION COURSE BUSINESS MATHEMATICS COURSE CODE MAT112 EXAMINATION SEPTEMBER 2013 TIME : 3HOURS 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 invigitator. 5 Please check to make sure that this examination pack consists of i) _ the Question Paper ii) an Answer Booklet ~ provided by the Faculty iil) aone— page Appendix 1 ( Tax Rate Schedule For Personal Income) iv) aone— page Appendix 2 (Formula List) DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO This examination paper consists of 5 printed pages (© Hak Cipta Universiti Teknologi MARA, CONFIDENTIALCONFIDENTIAL 2 CSISEP 2013/MAT112 QUESTION 1 a) On 15” May 2012, Ramasami saved RM6,000 in an account which offered a simple interest rate of 8% per annum. Find the amount in the account on 1* December 2012 (Use approximate time, exact simple interest). (4 marks) b) Tom invested RM3,750 at 7.5% simple interest per annum in a bank. He withdrew RM1,000 from the account 3 years later. How much is left in the account? (4 marks) ©) Ah Keong received a 100-day promissory note on 17" April 2013 with an 8% simple interest rate per annum. After 40 days, he discounted the note at a discount rate of 6% and received proceeds of RM18,300. Find the i) maturity date, (2 marks) ii) maturity value, (3 marks) ii) discount amount, (2 marks) iv) face value, (3 marks) V) amount of interest received by Ah Keong (2 marks) QUESTION 2 a) Randy borrowed RM3,000 at 8% compounded monthly for four years. Find the amount of interest charged. (4 marks) b) Amold opened a savings account which offered an interest rate of 10% compounded quarterly with an initial deposit of RM2,000. Two years later, he deposited RM3,000 into the same account. Find the amount accumulated four years after the initial deposit. (5 marks) ©) Mike plans to start a new business. He borrowed RM120,000 from a bank at 7.3% interest compounded every two months for 15 years. i) Find the periodic payments for his loan. (3 marks) (© Hak Cipta Universiti Teknologi MARA CONFIDENTIALCONFIDENTIAL, 3 CSISEP 2013/MAT112 ji) Calculate the total interest charged for the loan. (2marks) ili) Find the amount that he has to pay on the 6” payment, if he failed to pay the first 5 monthly payments. (3 marks) iv) After paying for 13 years, he plans to settle the loan with a single payment. Find the outstanding balance of the loan. (3 marks) QUESTION 3 a) Given the sequence: 20, 16, 12,..., - 48. Calculate the number of terms in the sequence. (3 marks) b) A sales representative estimates that his sales will increase by 5% every month. The sales for the first month was RM30,000. Find the i) sales for the 6” month, (3 marks) ii) total sales for the first year. (2 marks) ©) The cash price of an electric stove is RM4,200. On an installment plan, a 15% down payment is required followed by monthly payments for 2 years. If the interest charged is 9% on the reducing balance, find the ’) interest charged using the Constant Ratio formula, (4 marks) ii) monthly payment, (2 marks) ii) total amount a customer will eventually pay for the electric stove, (2 marks) iv) outstanding balance if the customer decides to settle the loan immediately after the 8" payment (Use Rule of 78). (4 marks) © Hak Cipta Universiti Teknologi MARA, CONFIDENTIALCONFIDENTIAL 4 CSISEP 2013/MAT112 QUESTION 4 a) ») A retailer received an invoice dated 21* April 2013 for RM3,325. It was offered trade discounts of 20%, 10% and cash discounts of 3/15, 2/20 and n/45. If the payment was made 2 weeks after the date of the invoice, find the i) single trade discount equivalent to the trade discounts given, (2 marks) ii) amount of trade discount, (2 marks) ii) the amount of payment. (3 marks) Steven purchased a few sets of Correl kitchenware on 18" August 2013 with a total list price of RM4,800. The trade discount given was 10% while the cash terms were 3/15, 1/30. He then sold the kitchenware and made a gross profit of 20% of the selling price. ‘The operating expenses were 5% of the selling price. Find the i) amount paid by Steven on 1 September 2013, (3 marks) ii) selling price, (2 marks) ili) breakeven price, (2 marks) iv) net profit, (8 marks) Vv) maximum markdown rate that could be offered without incurring any loss. (3 marks) (© Hak Cipta Universiti Teknologi MARA CONFIDENTIALCONFIDENTIAL, 5 CSISEP 2013/MAT112 QUESTION 5 a) A sewing machine has a scrap value of RM3,000 at the end of 5 years. The book value at the end of the third year is RM4,500. Using the straight line method, find the cost of the sewing machine. (4 marks) b) Donald bought a boat which costs RM 75,689 and the boat is expected to have a useful life of 7 years. Calculate the book value for the Sth year if the salvage value is RM21,345 using the declining balance method. (4 marks) ¢) Idris and his wife have four children. Three of the children are still schooling and one is doing his Bachelor's degree in a local university. Particulars regarding the income of Idris and his wife for the year 2012 were as follows: Idris Wife (RM) (RM) ‘Annual Salary 54,000 31,200 EPF Contribution 4,320 2,496 Books 800 300 Cash Donation 4,000 : Zakat 500 = Parents’ Medical fees 2,500 7,000 Life insurance premium 1,800 1,200 (12 marks) END OF QUESTION PAPER (© Hak Cipta Universiti Teknologi MARA CONFIDENTIALCONFIDENTIAL, APPENDIX 1 CSISEP 2013/MAT112 TAX RATE 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 5,000 3 150 On the first 10,000 4175 On the next 10,000 3 300 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 12 1,800 On the first 50,000 3,325 On the next 20,000 19 3,800 On the first 70,000 7,125 On the next 30,000 24 7,200 On the first 100,000 14,325 On the next Every RM after 26 — CONFIDENTIAL (© Hak Cipta Universiti Teknologl MARACONFIDENTIAL, APPENDIX 2 CS/SEP 2013/MAT112 LIST OF FORMULA a 1. =at(n-1)d 2 Sy = 5 lea +(n-1d] 3. Tasar™t 4. 5. S=P(I4rt) 6 noe 8. 9 S=P(t#i" 10. 1, san{ et) 2, 13. SP=C+M 14. GP=OE+NP 15. 2ml 16. Birn+1) 7 k(k +4) . . 17, OPB= (Rk) -1] 18. BV, = C(1-1) 19. £ fe (© Hak Cipta Universiti Teknolog! MARA CONFIDENTIAL