CONFIDENTIAL CSIMAR 2014/MAT112 UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION ‘COURSE BUSINESS MATHEMATICS COURSE CODE MAT112 EXAMINATION MARCH 2014 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 invigilator. 6. Please check to make sure that this examination pack consists of i) the Question Paper ii) an Answer Booklet ~ provided by the Faculty iii) 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 4 printed pages {© Hak Cipta Universiti Teknologi MARA CONFIDENTIALCONFIDENTIAL 2 CSIMAR 2014/MAT112, QUESTION 1 a) A college student deposited RM1,500 in an account when he was 18 years old. The simple interest rate offered was 4.85%. Calculate the simple interest earned when the college student is 25 years old. (2 marks) b) Raju paid RMB,200 on 12 September 2011 for his loan of RM8,000 made on a certain date. The simple interest rate was 5% per annum. Using Banker's Rule, determine the term of the loan (in days) and the date of the loan. (5 marks) ©) A 180-day promissory note dated 8 June 2012 had a face value of RM2,000. The simple interest rate charged was 6.6% per annum, Determine i) the maturity date of the note, (3 marks) ii) the maturity value. (4 marks) 4) RM2,000 was borrowed for 72 days at a discount rate of 8.75%. Determine ’) the amount received and the discount charged, (4 marks) ii) the simple interest rate that is equivalent to the given discount rate. (2 marks) QUESTION 2 a) A sum of money was deposited four years ago at a bank that offered an interest rate of 7.20% compounded every two months. if the accumulated amount today is RM6,391.07, calculate the initial deposit (4 marks) b) Bobby invested RM8,000 in an investment account at an interest rate of 6% compounded quarterly. Three years later he withdrew half of the initial investment from the account. Calculate the amount left in Bobby's account just after the withdrawal (6 marks) ©) A fresh graduate bought a used car for RM22,500 with a 20% down payment. He took a loan to settle the balance at a bank that charged him an interest rate of 4.20% compounded monthly. He was required to pay equal monthly payments for 7 years to settle the loan. i) Calculate the monthly payment and the total interest charged. (6 marks) ‘© Hak Cipta Universiti Teknologi MARA, CONFIDENTIALCONFIDENTIAL 3 CSIMAR 2014/MAT112, ji) If the fresh graduate failed to pay the first three monthly payments, calculate the amount he had to pay on the fourth payment in order to settle the outstanding arrears. (4 marks) iil) After paying for 5 years, he decided to settle the loan. Calculate the outstanding balance to be paid. (3 marks) QUESTION 3 a) Determine the number of terms for the following sequence: 71, 65, 59, ..., 13, (2 marks) b) The fifth term of a geometric sequence is 504 and the first term is 8064. Determine the common ratio and the sum of the first ten terms of the sequence. Assume that the common ratio is positive. (6 marks) ©) After paying RM400 as a down payment for a kitchen cabinet, Sharon paid RM125 a month for 2 years for the balance. The interest charged on the original balance was 4%. i) Determine the cash price of the kitchen cabinet and the total interest paid. (6 marks) li) Calculate the amount of outstanding balance just after the 15" payment using the Rule of 78. (4 marks) ili) Find the interest rate using the constant ratio formula. (4 marks) QUESTION 4 a) After deducting trade discounts of 15% and 8%, Encik Daniel paid RM328.83 for a leather briefcase. Calculate its list price. (3 marks) b) The manager of a bookstore received an invoice for the purchase of 100 copies of Business Mathematics textbooks at RM28 each. He was given trade discounts of 12% and 8%. The cash discount terms on the invoice were 5/10, 1/30. i) Determine the single trade discount rate equivalent to the chain discounts, (2 marks) (© Hak Cipta Universiti CONFIDENTIALCONFIDENTIAL 4 CSIMAR 2014/MAT112, ii) Calculate the amount of payment to be made if the payment was made one week after the date of invoice. (3 marks) ©) Saleha Boutique purchased 50 dresses for RM3,250. Saleha wanted a net profit of 40% based on the selling price. If the operating expenses were 18% based on the cost, determine i) the selling price of a dress, (3 marks) ji) the gross profit of a dress, (2 marks) ili) the breakeven price. (2 marks) QUESTION 5 a) A senior executive bought a car for RM135,000. The car was estimated to have a scrap value of RM40,000 after 10 years. Construct a depreciation schedule for the first three years using the straight line method. (4 marks) b) A factory purchased a new machine for RM120,000. The machine has an expected life of 15 years. If the scrap value of the machine is RM15,000, calculate the book value after 6 years using the declining balance method. (4 marks) ) Adam Mukhlis and his wife, Ain Hawa have § children. Three of their children are studying in a local university doing their first degree while the rest are still schooling. Their income and expenditures for 2012 were as follows: | ‘Adam Mukhlis ‘Ain Hawa | (RM) (RM) | Annual Income = 81,540 45,600 EPF Contribution 7,200 4,000 Life Insurance Premium 7 2,400 600 Books and Magazines 1,050 300 Parents’ Medical Expenses = 6,800 Donations 2,000 500 Zakat 1,500 800 Determine their tax liability for the assessment year if they chose separate assessments. (12 marks) END OF QUESTION PAPER (© Hak Cipta Universiti Teknologi MARA CONFIDENTIALCONFIDENTIAL APPENDIX 1 CSIMAR 2014/MAT112 TAX RATE SCHEDULE FOR PERSONAL INCOME Taxable Income Rate Tax (RM) (RM) ‘On the first 2,500 0 ° On the next 2,500 1 25 On the first 5,000 25 On the next 5,000 3 150 On the first 10,000 175 On the next 10,000 3 300 On the first 20,000 475 On the next 15,000 7 1,050 On the first 36,000 1,525 On the next 48,000 12 1,800 On the first 50,000 3,325 On the next 20,000 19 3,800 | 7 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 Teknologi MARACONFIDENTIAL APPENDIX 2 LIST OF FORMULA CSIMAR 2014/MAT112, 1. Tsat(n—t)d 3. T,=ar"" 5. S=P(1+1) 44. A=R| 7. 8. Sect 9. S=PUI+iy 7 (1+ i) fo s-n{to | 12.SP=C+M 13.GP = OE + NP. 14, NP =LP|1-d,){1-do). -(-4,) | 2m ae cae) kk +1) 17. BV, =C(1-r)" 18. on = (Rxt)-[ 4K © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL