TUNKU ABDUL RAHMAN UNIVERSITY COLLEGE

CENTER FOR PRE-UNIVERSITY STUDIES

Subject: FPMA 1064 Business Mathematics Tutorial number: 1

Topic covered: Basic Mathematics 1

1. Making y the subject.

a) m(y + a) = n(y + b) b) m/y2 = a + b

2. Express the following in simplest form.

a) (3x–1)2 ÷ 6x–3 – (–2x2 + x) b) (4x)0.5 ÷ x1.5 × 0.5x–3 – x(–2x–5 + x) + (–3x2)

3. When RM 143 is divided in the ratio 2 : 4 : 5, what is the difference between the largest share and the
smallest share?

4. A man and a woman share a prize of RM 1 000 between them in the ratio 1 : 4. The woman shares her
part between herself, her mother and her daughter in the ratio 2 : 1 : 1. How much does her daughter
receive?

5. A man and a woman share a sum of money in the ratio 3 : 2. If the sum of money is doubled, in what
ratio should they divide it so that the man still receives the same amount?

6. RM 400 is divided between Kas, Jaspar, and Jae so that Kas has twice as much as Jaspar and Jaspar has
three times as much as Jae. How much does Jaspar receive?

7. In 2010 a club h 250 members who each pay RM 95 annual subscription. In 2011 the membership
increased by 4% and the annual subscription is increased by 6%. What is the total income from
subscriptions in 2011?

8. In the last two weeks of a sale, prices are reduced first by 30% and then by a further 40% of the new
price. What is the cost price of a shirt if the final sale price of the shirt is RM 6.30?

9. A pair of jean is sold for RM 15, thereby making a profit of 25% on the cost price. What was the cost
price?

10. A car was sold for RM 1 430, thereby making a loss of 35% on the cost price. What was the cost price?

11. Given that G = ab, find the percentage increase in G when both a and b increase by 10%.

12. The length of a rectangle is decreased by 25% and the width is increased by 40%. Calculate the
percentage change in the area of the rectangle.

13. Hassan sells fruit and vegetables at the market. The mass of fruit and vegetables he sells in the ratio fruit :
vegetables = 5 : 7. Hassan sells 1.33 tonnes of vegetables. The amount of money Hassan receives from
selling fruits and vegetables is in the ratio fruit : vegetables = 9 : 8. He receives a total of RM 765 from
selling fruits and vegetables. Calculate the average price of Hassan’s fruit, in RM per kilogram.

14. A student played a computer game 500 times and won 370 of these games. He then won the next x games
and lost none. He has now won 75% of the games he has played. Find the value of x.

15. Maria, Carolina and Pedro receive RM y from their grandmother in the ratio
Maria : Carolina : Pedro = 7 : 5 : 4.
Carolina spends all of her money on a hi-fi set and two years later sells it at RM 200 at a loss of 20%.
Find the value of y.

1
Answers:

1. a) y = (nb – ma)/(m – n) b) y = √[m/(a + b)]

2. a) 0.5x+ 2x2 b) 3x–4 – 4x2
3. RM 39 4. RM 200 5. 3:7
6. RM 120 7. 26 182 8. RM 15
9. RM 12 10. RM 22 000
11. 21% 12. 5%
13. RM 0.43 14. 20 15. 800

2
 TUNKU ABDUL RAHMAN UNIVERSITY COLLEGE
CENTER FOR PRE-UNIVERSITY STUDIES

Subject: FPMA 1064 Business Mathematics Tutorial number: 2

Topic covered: Basic Mathematics 2

1. The sum of three consecutive numbers is 276. Find the numbers.

2. Find three consecutives even numbers which add up to 1 524.

3. Two numbers are in the ratio 1 : 11 and their sum is 15. Find the numbers.

4. The product of two consecutive odd numbers is 10 more than the square of the smaller number. Find the
numbers.

5. Kimiya has four times as many as marbles as Ramneet. If Kimiya gave 18 to Ramneet they would have
the same number. How many marbles has each?

6. A tennis racket costs RM 12 more than a hockey stick. If the price of the two is RM 31, find the cost of
the tennis racket.

7. A bus is travelling with 52 passengers. When it arrives at a stop, y passengers get off and 4 get on. At the
next stop, one-third of the passengers get off and 3 get on. There are now 25 passengers. Find y.

8. Mr. Lee left his fortune to his 3 sons, 4 daughters and his wife. Each son received twice as much as each
daughter and his wife received RM 6 000, which was a quarter of the money. How much did each son
receive?

9. Every year a man is paid RM 500 more than the previous year. If he receives a total of RM 17 800 over
four years, what was he paid in the first year?

10. Two numbers, which differ by 3, have a product of 88, Find them.

11. The numerator of a fraction is 1 less than the denominator. When both numerator and denominator are
increased by 2, the fraction is increased by 1/12. Find the original fractions.

12. The perimeters of a rectangle and a square are equal. One side of the rectangle is 11 cm and the area of
the square is 4 cm2 more than the area of the rectangle. Find the side of the square.

13. The perimeter of a rectangle is 68 cm. If the diagonal is 26 cm, find the dimensions of the rectangle.

14. A man bought a certain number of golf balls for RM 20. If each ball has costed 20 cents less, he could
have bought five more for the same money. How many golf balls did he buy?

Answers:

1. 91, 92, 93 2. 506, 508, 510 3. 5/4, 55/4

4. 5 5. 48, 12 6. RM 21.50
7. 23 8. RM 3 600 9. RM 3 700
10. 8, 11 and –8, –11 11. 3/4 and 7/6 12. 9 or 13
13. 10 cm x 24 cm 14. 20

3
 TUNKU ABDUL RAHMAN UNIVERSITY COLLEGE
CENTER FOR PRE-UNIVERSITY STUDIES

Subject: FPMA 1064 Business Mathematics Tutorial number: 3

Topic covered: Application of Simultaneous Equation and Derivatives –
Formulate Equation and Solve Simultaneously

1. Find solutions for the questions below.

a) y = 3x + 16 and 2y = x + 72
b) 5x + 2y = 34 and x + 3y = 25

2. Find solutions for the questions below.

a) y = x2 – 10x + 10 and y = –6
b) y = (x – 2)(x – 8) and y = x + 6

3. A manufacturer knows that if x products are demanded in a particular week:

(i) the total cost function is 14 + 3x and (ii) the total revenue function is 19x – 2x2.
Derive the total profit function.

4. The variable costs associated with a certain process are RM 0.65 per item. The fixed costs per day have
been calculated as RM 250 with special costs estimated as RM 0.02x2 per day, where x is the number of
items produced. Derive a function to describe cost per item for a day’s production.

5. A refrigerator manufacturer can sell all the refrigerators of a particular type that he can produce. The total
cost of producing q refrigerators per week is given by 300q + 2 000. The demand function is estimated as
500 – 2q.
a) Derive the total profit function.
b) Derive the average cost function.

6. A product is sold at RM 5 a unit. The total cost for the product when x units are produced and sold is
given by 60 + 1.2x + 0.001x2 where x is the level of output. Derive the total profit function for the product
sold.

7. A company produces product A and the demand function for the product A is linear with the following
information:
At the price of RM 78, 30 units are sold.
At the price of RM 58, 50 units are sold.
The variable cost of producing product A is given by 20x + 0.1x2 and the fixed cost is RM 500.
Derive the total profit function.

8. Andre has more money than Bob. If Andre gave Bob $20, they would have the same amount. While if
Bob gave Andre $22, Andre would then have twice as much as Bob. How much does each one actually
have?

9. 1 000 tickets were sold. Adult tickets cost $8.50, children's cost $4.50, and a total of $7 300 was
collected. How many tickets of each kind were sold?

10. Mrs. B. invested $30,000; part at 5%, and part at 8%. The total interest on the investment was $ 2 100.
How much did she invest at each rate?

11. The cost of a ticket to the circus is $25.00 for children and $50.00 for adults. On a certain day, attendance
at the circus is 2,000 and the total gate revenue is $70,000. How many children and how many adults
bought tickets?

4
12. Given the cost function C(x) = 0.85x + 35 000 and the revenue function R(x) = 1.55x, where x is the
number of units produced.
a) Find the break-even point.
b) Find the profit function and the profit when x = 60 000 units.

13. An invoice clerk receives a bill for RM 37.50 for ten blank ledger books and three special filling trays.
On phoning the supplier (after discovering the order had been written out incorrectly) the clerk agrees to
return three of the ledger books in return for the supplier sending an extra filling tray. Given that there
will be an extra RM 2.50 to pay and there is a 10% discount for orders of 10 ledger books or more. Find
the price of a single ledger book and a filling tray.

14 A manufacturer knows that if x(hundred) products are demanded in a particular week:

(i) the total cost function (RM’000) is 14 + 3x and (ii) the total revenue function (RM’000) is 19x – 2x2.
Find the profit break-even points.

15. Given that the price of an item is RM 3.50 when 250 items are demanded, but when only 50 are
demanded, the price rises to RM 5.50 per item. Identify the linear demand function and calculate the price
per item at a demand level of 115.

16. An apartment building contains 12 units consisting of one- and two-bedroom apartments that rent for
RM 360 and RM 450 per month, respectively. when all units are rented, the total monthly rental is
RM 4 950. What is the number of two-bedroom apartments?

Answers:

1. a) x = 8, y = 40 b) x = 4, y = 7
2. a) x = 2, y = –6; x = 8, y = –6 b) x = 1, y = 7; x = 10, y = 16
3. 16x – 2x2 – 14 4. 250/x + 0.65 + 0.02x
5. a) 200q – 2q2 – 2 000 b) 300 + 2 000q–1 6. 3.8x – 0.001x2 – 60
7. 88x – 1.1x2 – 500 8. 146, 106
9. 700, 300 10. 10 000, 20 000
11. 1 200, 800 12. a) (50 000, 77 500) b) 0.7x – 35 000, 7 000
13. 2, 6.5 14. 100 or 700
15. p = 9 – 0.01x, RM 4.85 16. 7

5
 TUNKU ABDUL RAHMAN UNIVERSITY COLLEGE
CENTER FOR PRE-UNIVERSITY STUDIES

Subject: FPMA 1064 Business Mathematics Tutorial number: 4

Topic covered: Application of Simultaneous Equation and Derivatives –
Differentiation and Application of Differentiation

1
1. The demand equation for a certain product is p  6  x dollars. Find the level of production that results
2
in maximum revenue and its maximum profit.

2. The WMA Bus Lines offers sightseeing tours of Washington, D.C. One tour, priced at $ 7 per person, had
an average demand of about 1 000 customers per week. When the price was lowered to $ 6, the weekly
demand jumped to about 1 200 customers. Assuming that the demand equation is linear, find the tour
price that should be charged per person to maximize the total revenue each week.

3. A manufacturer determines that the profit (in dollars) derived from selling units of an item is given by
P = 0.0002x3 + 10x.
a) Find the marginal profit for a production level of 50 units.
b) Compare this with the actual gain in profit obtained by increasing production from 50 to 51 units.

4. A company estimates that the cost (in dollars) of producing units of a product is given by
C = 800 + 0.04x + 0.0002x2.
Find the production level that minimizes the average cost per unit.

1 2
5. The demand equation for a certain commodity is p  x  10 x  300 , 0 ≤ x ≤ 60. Find the value of x and
12
the corresponding price p that maximize the revenue.

6. A real estate office handles 50 apartment units. When the rent is $ 720 per month, all units are occupied.
However, on the average, for each $ 40 increase in rent, one unit becomes vacant. Each occupied unit
requires an average of $ 80 per month for service and repairs. What rent should be charged to obtain a
maximum profit?

50
7. In marketing an item, a business has discovered that the demand for the item is represented by p  .
x
The cost (in dollars) of producing items is given by C = 0.5x + 500. Find the price per unit that yields a
maximum profit.

8. A store has been selling 200 DVD burners a week at $ 350 each. A market survey indicates that, for each
$ 10 rebate offered to buyers, the number of units sold will increase by 20 a week.
a) Find the demand function and the revenue function.
b) How large a rebate should the store offer to maximize its revenue?

9. An apartment complex has 250 apartments to rent. If they rent x apartments then their monthly profit, in
dollars, is given by P(x) = −8x2 + 3 200x – 80 000. How many apartments should they rent in order to
maximize their profit?

10. A production facility is capable of producing 60 000 widgets in a day and the total daily cost of
producing x widgets in a day is given by, C(x) = 250 000 + 0.08x + 200 000 000x–1. How many widgets
per day should they produce in order to minimize production costs?

11. The production costs per week for producing x widgets is given by, C(x) = 500 + 350x − 0.09x2, where C
in RM and 0 ≤ x ≤ 1 000.
a) What is the cost to produce the 301st widget, give the answer in nearest cent?
b) What is the rate of change of the cost at x = 300?
6
12. The cost function for the manufacture of x number of goods by a company is C(x) = –(x + 10)2(x – 35), for
x ≥ 0.
a) Find the fixed cost of manufacturing.
b) Find the level of output at which the cost is maximum.

13. Suppose that the demand function for a monopolist is p = 100 – 0.01x (in dollars) and the cost function is
C(x) = 50x + 10 000.
a) Find the value of x that maximize the profit and determine the corresponding price and total profit for this
level of production.
b) If the government has imposed an excise tax of $10 per unit sold, find the value of x that maximize the
profit and determine the corresponding price and total profit for this level of production.

14. Small tie shop sells ties for $ 3.50 each. The daily cost function is estimated to be C(x) dollars, where x
is the number of ties sold on a typical day and C(x) = 0.0006x3 – 0.03x2 + 2x + 20. Find the value of x that
will maximize the store’s daily profit.

Answers:

1. x = 6, 18 dollars 2. $6
3. a) $ 11.50 b) $ 11.53
4. 2 000 5. x = 20 units, p = $133.336.
6. 1 400
7. $ 1.00
8. a) p = 450 – 0.5x b) $ 125
9. 200 10. 50 000
11. a) 295.91 b) 296
12. a) 3 500 b) x = 20
13. a) 2 500, $ 75, $ 52 500 b) 2 000, $ 80, $ 30 000
14. x = 50

7
 TUNKU ABDUL RAHMAN UNIVERSITY COLLEGE
CENTER FOR PRE-UNIVERSITY STUDIES

Subject: FPMA 1064 Business Mathematics Tutorial number: 5

Topic covered: Linear Programming – Inequalities

1. Solve the following inequalities.

a) 5(x – 1) + 7 ≤ 1 – 3(x + 2) b) 5(x – 4) + 17 – 14x > 13 – 4x
c) 10x – 1 ≤ 3(4x – 3) d) 11(2x – 15) < x + 3

2. Solve the following inequalities.

a) 3x  1  8  x  3 b) 6  x  3 x  39  x
4 6 7 2 7 14
x  4 7 x d) 2 x  3  16 x  13  2 x
c)   (2 x  1)
2 2 3 21 3 15

3. Solve −1 < 2x + 3 < 6.

4. Solve 2x < x − 4 ≤ 3x + 8.

5. Solve x − 1 < 2x + 2 < 3x + 1.

6. Solve the inequalities 5x + 1 > –24 and 5x – 1 < 24.

7. Solve the inequalities 5(2x – 7) – 3(2x + 3) ≤ 0 and 2x + 19 ≤ 6x + 47.

8. The width of a rectangle is 20 inches. What must the length be if the perimeter is at least 180 inches?

9. Keith has $500 in a savings account at the beginning of the summer. He wants to have at least $200 in the
account by the end of the summer. He withdraws $25 each week for food, clothes, and movie tickets.
Calculate the maximum weeks can Keith withdraw money from his account.

10. Yellow Cab Taxi charges a $1.75 flat rate in addition to $0.65 per mile. Katie has no more than $10 to
spend on a ride. Calculate the maximum number of miles can Katie travel.

11. A solution is to be kept between 68°F and 77°F. Find the range in temperature in degree Celsius (C) if the
Celsius/Fahrenheit (F) conversion formula is given by F = 9C/8 + 32.

12. IQ of a person is given by the formula IQ = (MA/CA) × 100, where MA is mental age and CA is
chronological age. If 80 ≤ IQ ≤ 140 for a group of 12 years old children, find the range of their mental
age.

13. Sam and Alex play in the same soccer team. Last Saturday Alex scored 3 more goals than Sam, but
together they scored less than 9 goals. What are the possible number of goals Alex scored?

14. Of 8 pupils, there are more girls than boys. How many girl pupils could there be?

Answers:

1. a) x ≤ –7/81 b) x ≤ –16/5 c) x ≥ 4 d) x < 8

2. a) x > –9 b) x > 27 c) x > 1 d) x > –35
3. –2 < x < 1.5 4. −6 ≤ x < −4 5. x>1 6. –5 < x < 5
7. −7 ≤ x ≤ 11 8. x ≥ 70 9. x = 12 10. x = 12
11. 20 < x < 25 12. 9.6 ≤ CA ≤ 16.8 13. 3, 4 or 5 14. 5, 6, 7 or 8

8
 TUNKU ABDUL RAHMAN UNIVERSITY COLLEGE
CENTER FOR PRE-UNIVERSITY STUDIES

Subject: FPMA 1064 Business Mathematics Tutorial number: 6

Topic covered: Linear Programming – Graphical Method

1. Solve the following linear programming problems:

a) Maximize z = 10x1 + x2 subject to x1  1, 20x1 + x2  100, x1  0, x2  0.
b) Maximize f = 5x + 8y subject to 2x + 3y ≤ 60, 4x + 12y ≤ 168, 8x + 6y ≤ 120, x, y ≥ 0.

2. A special diet must have the following minimum requirements: 16 units of carbohydrates, 38 units of
vitamin and 14 units of protein. For every special diet, two types of ingredient X and Y are to be used.
Each unit of ingredient X contains 2 units of carbohydrates, 6 units of vitamin and 6 units of protein, and
its cost RM 1. One unit ingredient Y contains 6 units of carbohydrates, 8 units of vitamin and 2 units of
protein, and its cost RM 0.50. Determine how the special diet should be prepared so that all the dietary
requirements are satisfied but its cost is a minimum.

3. A farmer wants to make use of a piece of land with an acre of 20 acres to plant leaves mustard
and sweet potatoes. Assuming that x and y represent number of acres required to plant leaves mustard
and sweet potatoes respectively. Relevant information is show below:
Leaves mustard Sweet potatoes Maximum amount available
Cost per acre RM100 RM90 RM1 800
Labor per acre 4 days 2 days 60 days
Profits per acre RM60 RM20
The farmer wants to maximize his profits. Advise the farmer on how to best utilize his 20 acres of land to
achieve his target.

4. A factory has x big buses and y small buses to provide transport for its workers. The factory has
maximum 600 workers. The capacities of a big bus and a small bus are 40 and 30 passengers respectively.
Given the number of big buses is at most 12 and the total number of buses is not more than 20.
Show on graph paper, the feasible region, R.

If the daily operation costs for a big bus and a small bus are RM 300 and RM 200 respectively, by using
the graphical method, find the units of x and the units y to determine the daily minimum and maximum
operation costs.

5. A private school accepts two stream of student, that is, the arts and science stream students. The
fee charged for an arts stream student is RM 1 000 per annum and the fee for a science stream student is
RM 1 500 per annum. In order for the school to operate without any loss, the total amount of fees
received in a year must be at least RM 600 000. The headmaster of the school wishes to have no more
than 600 students and the number of science students should not exceed 350. In addition, the number of
arts students should not be more than twice the number of science students.
a) Write down 4 inequalities (other than x  0 and y  0) to represent the constraints above.
b) Draw on graph paper, the feasible region, R for those constraints.
c) If the number of science students is 300, what is the maximum number of arts students that can be
accepted?

6. A manufacturer produces two types of goods, A and B. to produce one unit of good A, it requires 1 unit of
raw material R1, 1 unit of material R2, and 9 units of raw material R3. To produce one unit of good B, it
requires 1, 2 and 5 units of raw materials R1, R2 and R3 respectively. The amount of raw material R1, R2
and R3 available are 60, 100 and 450 units respectively. The net profit obtained from selling one unit of
good A is RM4 and that of B is RM5, find the optimal quantities of A and B to produce in order to obtain
maximum profits from the existing raw materials.

9
7. The contents of vitamin found in two types of multivitamin pills, ‘multivit’ and ‘pluravit’, are as
follows:
Pill Multivit Pluravit
Vitamin A 12 18
Vitamin C 24 6
Vitamin E 3 9
Price per pill 9 cent 8 cent
In order to recover quickly, a patient needs at least 600 units of vitamin A, 480 units of vitamin C and 180
units of vitamin E every day. Use the graphical method to find the number of ‘multivit’ and ‘pluravit’
pills that the patient needs to take to satisfy his daily requirements but at a minimum cost.

8. The manager of a football team has $ 100 000 to spend on buying new players. He can buy defenders at
$ 6 000 each or forwards at $ 8 000 each. There must be at least 6 of each sort. To cover for injuries, he
must buy at least 13 players altogether. If the wages are $ 10 000 per week for each defender and
$ 20 000 per week for each forward, what is the combination of players which has the lowest wage bill?

9. The manager of a car park allows 10 m2 of parking space for each car and 30 m2 for each lorry. The total
space available is 300 m2. He decided\s that the maximum number of vehicles at any time must not
exceed 20 and he also insists that there must be at least as many cars as lorries. If the parking charge is
RM 1 for a car and RM 5 for a lorry, find how many vehicles of each kind he should admit to maximize
his income and find his maximum income.

10. A farmer has to transport max 20 people and max 32 sheep to a market. He can use either Fiats(x) which
take 2 people and 1 sheep, or Rolls Royces(y) which take 2 people and 4 sheep. He must not use more
than 15 cars altogether.
a) What is the lowets total numbers of cars he could use?
b) If it costs RM 10 to hire each Fiat and RM 30 for each Roll Royce, what is the cheapest solution?

Answers:

1. a) z = 100, x1 = 0, x2 = 100 b) f = 126, x = 6, y = 12

2. Minimize z = x + 0.5y subject to 2x + 6y  16, 6x + 8y  38, 6x + 2y  14, x, y  0
Optimal: x = 1, y = 4, z = RM 3
3. Maximize z = 60x + 20y subject to x + y  20, 100x + 90y  1800, 4x + 2y  60, x, y  0
Optimal: x = 15, y = 0, I = RM 900
4. Minimize f = 300x + 200y subject to x + y  20, 4x + 3y  60, x  12, x, y  0
(0, 20), 4 000; (12, 8), 5 200
5. a) x (arts), y (science), 1 000x + 1 500y  600 000, x + y  600, y  350, x  2y c) 300
6. Maximize z = 4x + 5y subject to x + y  60, x + 2y  100, 9x + 5y  450, x, y  0
Optimal : x = 20, y = 40, z = RM 280
7. Minimize z = 9x + 8y subject to 12x + 18y  600, 24x + 6y  480, 3x + 9y  180, x, y  0
Optimal : x = 14, y = 24, z = RM 318
8. 7 defenders and 6 forwards
9. 9 cars and 7 lorries, RM 44
10. a) 10 b) (4, 7), RM 250

10
 TUNKU ABDUL RAHMAN UNIVERSITY COLLEGE
CENTER FOR PRE-UNIVERSITY STUDIES

Subject: FPMA 1064 Business Mathematics Tutorial number: 7

Topic covered: Network Planning – Critical Path and Minimum Completion time

1. A company is planning to launch a new product. The following table shows activities involved:

Activity Preceding activity Duration (days)

A – initial discussion – 5
B – product design A 21
C – market survey A 16
D – market evaluation C 4
E – determination of product cost B 10
F – sales planning C 13
G – estimation of selling price D, E 6
H – construction of prototype F, G 23
I – market information preparation B 15
J – examine prototype H, I 16

a) Draw a network diagram.

b) Determine the critical path and minimum project completion time.

2. Find the critical path and project completion time for the following network:
Activity Preceding activity Duration (days)
A – 4
B – 12
C A 5
D B 4
E A, D, L 3
L B 4
F B 5
G C, E, F 11
H G 2
I G 3
M G 4
J H, M 5
K I, J 4

3. Find the critical path and project completion time for the following network:

Activity Preceding activity Duration (days)

A – 11
B – 13
C A 11
D A 10
E A 14
F A, B 18
G C 13
H C, D 15
I E 14
J G, H 13
K H 11
L H, I 15
M H, I, F 14

11
4. Find the critical path and project completion time for the following network:
Activity Preceding activity Duration (weeks)
A I 4
B A, J 5
C – 4
D I 6
E I 3
F H 7
G – 5
H B, E 9
I G 3
J C, D 4

5. Find the critical path and project completion time for the following network:
Activity Preceding activity Duration (weeks)
A – 4
B – 5
C A, B 5
D B 6
E C, D 9
F E, G 7
G A 11
H F 7

6. The table below shows the preceding activities and duration of activities of a particular project.
Activity Preceding activity Duration (weeks)
P – 6
Q – 10
M – 9
R Q 4
S P 2
T P, M 12
U S 6
N P, M 7
V R, N, T 6

Find the critical path and minimum completion time.

7. The information below concerns activities involved in a particular project.

Activity Preceding activity Duration (days)
S – 7
T – 11
U T 5
V S 3
W S 13
X U 7
Y V, W 7
Z T, V, W 8
R S 6
P R, V 12
Find the critical path and minimum project time.

12
Answer:

1. a) b) Critical path : A–B–E–G–H–J, 81 days.

2. Critical path : B–D–E–G–M–J–K, 43 days.

Critical path : B–L–E–G–M–J–K, 43 days.

3. Critical path : A–E–I–L, 54 days.

13
4. Critical path : G–I–D–J–B–H–F, 39 weeks. 5. Critical path : B–D–E–F–H, 34 weeks.

6. Critical path : M–T–V, 27 weeks. 7. Critical path : S–W–Z, 28 days.

14
 TUNKU ABDUL RAHMAN UNIVERSITY COLLEGE
CENTER FOR PRE-UNIVERSITY STUDIES

Subject: FPMA 1064 Business Mathematics Tutorial number: 8

Topic covered: Financial Mathematics 1 – Arithmetic Progression and Geometric Progression

1. A squirrel is collecting nuts. It collects 5 nuts on the first day or the month, 8 nuts on the second, 11 on
the third and so on in arithmetic progression.
a) How many nuts will it collect on the 20th day.
b) After how many days will it have collected more than 1000 nuts.

2. Jenny is given an interest-free loan to buy a car. She repays the loan in unequal monthly installments,
these start at $30 in the first month and increase by $2 each month after that. She makes 24 payments.
a) Find the amount of her final payment.
b) Find the amount of her loan.

3. In an arithmetic progression, the 8th term is twice the 3rd term and the 20th term is 110.
a) Find the common difference.
b) Determine the sum of the first 100 terms.

4. The tenth term of an arithmetic progression is 36, and the sum of the first ten terms is 180. Find the first
term and the common difference.

5. An arithmetic series has first term 5 and tenth term is equals to 26.
a) Find the common difference.
b) Find the fifteenth term.

6. In a geometric progression, the fifth term is 100 and the seventh term is 400. Find the first term.

7. The nth term of a sequence is arn – 1, where a and r are constants. The first term is 3 and the second term is
3
 . Find the values of r.
4

8. An investment of $100 at 1st January of year 2010 in a savings scheme is worth $150 at the end of 5
years. Calculate as a percentage the annual rate of interest which would give this figure.

1
9. The sum of three consecutive terms x, y and z of an arithmetic sequence is 45. If y = ( x  z) , find the
2
value of y.

10. The seventh term of a geometric sequence exceeds the fifth term by 36. Find the sum of the first ten terms
if the common ratio is 2.

Answers:

1. a) 62 b) 25 2. a) $76 b) $1272
3. a) 5 b) 26 250 4. 0,4
7 2 25
5. a) b) 37 6.
3 3 4
1
7. a) a = 3, r =  8. 8.45% 9. 15
4
10. 767.25

15
 TUNKU ABDUL RAHMAN UNIVERSITY COLLEGE
CENTER FOR PRE-UNIVERSITY STUDIES

Subject: FPMA 1064 Business Mathematics Tutorial number: 9

Topic covered: Financial Mathematics 1 – Simple Interest, Compound Interest
and Effective Rate

1. John requests a 2-year loan of RM6 500 from Traders Bank. The bank approves the loan at an annual
interest rate of 14%.
a) What is the simple interest rate of the loan?
b) What is the maturity value of the loan?

2. The simple interest on RM 1 000 at 10% per annum for a certain investment period is RM 250. Find the
duration time needed for the investment.

3. Atiqah received RM 31 000 from SAB bank after 8 months investment on RM 30 000 at a simple interest
rate charged. Find simple interest charged.

4. Mr. Khairul borrowed a total of RM 40 000 from two money lenders. He has to pay a simple interest rate
of 12% per annum for one of the loan and 14% per annum for the other loan. After 1 year, he pays a total
of RM 5 120 as interest. Find the amount he did borrowed from both respective lenders.

5. An investor is considering two ways of investing RM20 000 for a period of 10 years. Option A offers 1.5%
annual interest compounded every 3 months whereas option B offers 3.2% annual interest compounded
every 6 months. Which is the better option?

6. A finance director estimates that his company will have to spend RM 0.25 million on new machinery in
two years from now. Two alternative methods of providing the money is being considered, both assuming
an annual rate of interest of 10%.
a) A single sum of money, RM A, to be set aside and invested now, with interest compounded every six
months. How much should this single sum be?
b) A single sum of money, RM A, to be set aside and invested now, with interest compounded every
three months. How much should this single sum be?

7. An investor is considering two ways of investing RM 15 000 for a period of 10 years. Option A offers
1.2 % compounded every 3 months whereas option B offers 2.8% simple annual interest rate. Which is
the better option?

8. Find the principal amount, P(in nearest RM) and annual interest rate, r if given that the accrued amounts
for 2 years and 4 years are RM 1 261.33 and RM 1 325.79 respectively when the compound period is
quarterly.

9. Find the principal amount, P(in nearest RM) and annual interest rate, r if given that the accrued amount
for 2 years is RM 1 685.40 when the compound period is yearly, and the accrued amount for 4 years at
simple annual interest rate, r per annum is RM 1 860, given that r < 10%.

10. Five years ago, Eliza invested RM 6 660 in a bank at a simple interest rate of 7.2% per annum. Find
a) the amount in the account today,
b) the number of years required to accumulate the amount in the account to become RM 9 537.12.

11. Two years ago, Bee Wah invested RMP in her account which earns r% simple interest per annum. After
18 months, she noticed that the amount had become RM 10 450 and today the amount is RM 10 600.
Find the values of P and r.

16
12. Calculate the number of year required for a sum of money to double itself at 14% annual interest rate
compounded annually.

13. RM 25 000 was invested for 4 years and 9 months. If the investment was offered 12% compounded semi-
annually for the first 2 years and 10 % compounded quarterly for the rest of the period. Find the future
value of the investment.

14. Lam wishes to borrow some money to finance some business expansion. He has received three different
quotes:
Bank A: charges 14.35% compounded semi-annually,
Bank B: charges 14.40% compounded monthly,
Bank C: charges 14.30% compounded daily.
Which bank provides a better deal?

15. Which yields more interest, 5% compounded monthly or 5.1% compounded quarterly in a year?

16. Find the effective rate that is equivalent to 6% compounded monthly.

17. Find the nominal rate, compounded semi-annually, that is equivalent to 6% effective rate.

18. Find the nominal rate, compounded monthly, that is equivalent to

a) 8.5% compounded semi-annually,
b) 10% compounded quarterly,
c) 6% compounded daily (assume 365 days in a year).

Answers:

1. a) RM 1 820 b) RM 8 320
2. 2.5 years 3. 0.05 or 5%
4. RM 24 000, RM 16 000
5. Option A = 23 230.17, Option B = 27 472.88, choose option B as interest is higher.
6. a) RM 205 675.62 b) RM 205 186. 64
7. A(RM 16 909.41), B(RM 19 200), so option B is better as interest is higher.
8. P = RM 1 200, r = 2.5%
9. P = RM 1 500, r = 6%
10. a) RM 9 057.60 b) 6 years
11. RM 10 000, 3%
12. 5.29 years
13. RM 41 411.98
14. Bank A as it charges a lower effective rate.
15. 5.1% compounded quarterly
16. 6.17%
17. 5.91%
18. a) 8.35% b) 9.92% c) 6.01%

17
 TUNKU ABDUL RAHMAN UNIVERSITY COLLEGE
CENTER FOR PRE-UNIVERSITY STUDIES

Subject: FPMA 1064 Business Mathematics Tutorial number: 10

Topic covered: Financial Mathematics 2 – Annuities: Sinking Fund

1. If RM 40 is deposited each week into an account earning 6% annual interest compounded weekly, find
the future value of the annuity at the end of 5 years.

2. It is known that Guaranty Income Save offered an annuity that pays 8% annual interest compounded
quarterly. If RM 100 is deposited into this annuity every quarter, how much is in the account after 3 years?
How much of this is interest?

3. If RM 1 500 is deposited at the end of each year for the next 6 years into an annuity earning 8% per year,
compounded yearly. Compute the future value of the annuity at the end of 6 years.

4. Find the future value of an annuity of 36 quarterly payments of RM 300 each that earn interest at the rate
of 6% per annum compounded quarterly.

5. Mr and Mrs Lin consider setting aside some money each month to help provide for their daughter's
tertiary education. They deposit RM 100 at the end of each month into an account earning 3% annual
interest, compounded monthly. How much will be in the account after 5 years?

6. Find the periodic payment to be made into a sinking fund to accumulate a future value A in each of the
following cases. (Assume end-of-period deposits and compounding at the same intervals as deposits).
a) A = RM 10 000, money earns 5% per year compounded monthly for 5 years.
b) A = RM 20 000, over 6 years with interest earned at the rate of 4% per year compounded semi-
annually.
c) A = RM 75 000, over 20 years with interest earned at the rate of 6% per year compounded quarterly.
d) A = RM 80 000, money earns 6% per year compounded annually for 17 years.

7. Mr & Mrs Gunalan consider setting aside some money each quarter into an account that pays 4% interest
per year compounded quarterly, to help provide for their newly born son's tertiary education. They plan to
have RM 100 000 after their son's 17-year-old birthday. What is the amount they have to deposit at the
end of every quarter in order to reach their target?

8. Jamil, who is 41 years old, is setting a retirement benefit plan. If he wishes to have RM 250 000 in his
retirement account by age 60, what is the amount of each yearly instalment he will be required to make
into a savings account earning interest at 5.5% per year?
(Assume that Jamil is eligible to make each of the 20 required contributions).

9. An institution hopes to accumulate an amount of RM 500 000 to build its administrative hall 10 years
later from now. The institution makes a regular payment every 6 months into a sinking fund paying 5%
annual interest compounded semi-annually. At the end of 10 years, the account will be mature. Calculate
the amount of each payment.

10. 12 monthly payments of RM 100 are made into a Building Society account which pays a fixed
annual rate of 10.75%, compounded monthly. How much is the account worth at the end of the year?

11. Melissa invested RM 60 every month, beginning 30 April 2014, into an account that pays an interest of 9%
compounded monthly. Find the amount in the account immediately after she deposited the last RM 60 on
30 September 2017.

12. At the end of each month, beginning January 2015, Jamilah invested RM 250. She invested an additional
amount of RM 50 every month beginning June 2016. Calculate the amount in her account just after
November 2017 if the account pays an interest of 12% compounded monthly.

18
13. RM 100 was invested every month in an account that pays an interest of 12% compounded monthly for
two years. After the two years, no more deposit was made. Find the amount in the account at the end of
the fifth year and the interest earned.

14. Lily invested RM 100 at the end of every month for five years in an investment scheme. She was
offered an interest rate of 5% compounded monthly for the first three years and 9% compounded monthly
for the rest of the period. Find the accumulated amount at the end of the fifth year and determine the
interest earned.

15. Sam pays an equal semi-annual payment of RM 100 into a sinking fund with 6% annual interest
compounded semi-annually for 3 years, while Simon allocates RM 500 into a saving policy which
guarantees a saving at an annual interest rate, r% compounded quarterly for the same period as Sam. Both
of them will receive the same accrued amount at the end of 3 years. Find the value of r.

Answers:

1. RM 12 120.35 2. RM 1 341.21, RM 141.21

3. RM 11 003.89 4. RM 14 182.79
5. RM 6 464.67
6. a) RM 147.05 b) RM 1 491.19
c) RM 491.12 d) RM 2 835.58
7. RM 1 033.89 8. RM 7 169.83
9. RM 19 573.56 10. RM 1 260.93
11. RM 2 949.20 12. RM 11 395.81
13. RM 3 859.28, RM 1 459.28
14. RM 7 255.35, RM 1 255.35
15. 8.68%

19
 TUNKU ABDUL RAHMAN UNIVERSITY COLLEGE
CENTER FOR PRE-UNIVERSITY STUDIES

Subject: FPMA 1064 Business Mathematics Tutorial number: 11

Topic covered: Financial Mathematics 2 – Annuities: Amortisation

1. Find the present value and the interest paid for each of the following annuities.
a) RM 400 per year for 8 years at the rate of 7% per annum, compounded annually.
b) RM 300 per month for 5 years at the rate of 6% per annum, compounded monthly.
c) RM 2 000 per quarter for 4.5 years at the rate of 8% per annum, compounded quarterly.
d) RM 1 200 per semi-annual period for 6 years at the rate of 10% per annum, compounded semi-
annually.

2. Mei Lin saves an amount into an account with an anticipation of withdrawing RM 200 at the end of each
month for the next five years to be used for her tertiary education. The account pays an annual interest of
4%, compounded monthly for 5 years. The account balance should be zero at the end of five years.
a) Calculate the present value of the annuity.
b) How much interest was paid?

3. Auto Big Company has leased a car for 5 years at RM 700 per month. The money is worth 8% per year,
compounded monthly.
a) What is the equivalent cash payment of this annuity?
b) What portion of the total car payments went toward interest charges?

4. A TV "Treasure Hunt" programme pays the winner 10 instalments of RM 10 000 per year. The organiser
makes the first payment of RM 10 000 immediately and the other 9 payments at the end of each of the
next 9 years. Find how much money the organiser should have in the bank initially to guarantee the
payments, assuming that the balance on deposit with the bank earns interest at the rate of 6% per year
compounded yearly.

5. Find the monthly payment that is necessary to pay off a loan of RM 1 600 at 9% per annum
a) in 2 years,
b) in 5 years.
Calculate the total amount that is paid out for each loan.

6. A total of RM 40 000 is to be repaid over a 4-year period through equal instalments made at the end of
each year. Suppose that an interest rate of 7% per annum is charged on the unpaid balance and interest
calculations are made at the end of each year, find the amount of each instalment in order that the loan
(principal plus interest charges) is amortised at the end of 4 years.

7. A person borrows RM 8 000 and makes 12 monthly payments. The money is borrowed at 4% per annum,
compounded monthly.
a) Find the amount of monthly payment.
b) What is the interest for the first monthly period?
c) What is the principal owed at the end of first period?
d) Construct an amortisation schedule.

8. A company negotiates a loan of RM 200 000 over 15 years at 10.5% per annum. Calculate the annual
payment necessary to amortize the debt and the interest paid for the loan.

9. Kusha borrowed RM 100 000 at an interest rate of 12% compounded monthly. How many monthly
payments of RM 1 973.87 should Kusha make?

10. Joanna bought a TV with cash prize of RM 6 500 by making an initial payment of RM X. The balance
will be settled by making 18 monthly payments of RM 300 each at the end of every month. Suppose that
an interest rate of 23.93% per annum is charged on the unpaid balance, find the value of X.

20
11. Maria invests RM 13 500 in an account that pays an interest of 6% compounded monthly. She intends
to withdraw an equal amount every month for two years and when she makes her last withdrawal, her
account will have zero balance. Find the size of withdrawals.

12. B&C Chemistry Industry has decided to pay back a RM 20 000 loan by making six semi -annual
payments at an interest rate of 12% compounded semi-annually.
a) Find the semi-annual payment.
b) Find the interest and principal portions of the first payment.
c) Find the outstanding balance after first payment.
d) Find the interest and principal portions of the second payment.

Answers:

1. a) RM 2 388.52, RM 811.48 b) RM 15 517.67, RM 2 482.33

c) RM 29 984.06, RM 6 015.94 d) RM 10 635.90, RM 3 764.10
2. a) RM 10 859.81 b) RM 1 140.19
3. a) RM 34 522.90 b) RM 7 477.10 4. RM 78 016.92
5. a) RM 73.10, RM 1 754.40 b) RM 33.21, RM 1 992.60 6. RM 11 809.12
7. a) RM 681.20 b) RM 26.67 c) RM 7 345.47
d) The amortisation schedule of payment for this loan

Payment Monthly Principal Interest Outstanding

number payment payment payment principal
(RM) (RM) (RM) (RM)
0 0 0 0 8 000.00
1 681.20 654.53 26.67 7 345.47
2 681.20 656.71 24.48 6 688.75
3 681.20 658.90 22.30 6 029.85
4 681.20 661.60 20.10 5 368.75
5 681.20 663.30 17.90 4 705.45
6 681.20 665.51 15.68 4 039.93
7 681.20 667.73 13.47 3 372.20
8 681.20 669.96 11.24 2 702.24
9 681.20 672.19 9.01 2 030.05
10 681.20 674.43 6.77 1 355.62
11 681.20 676.68 4.52 678.94
12 681.20 678.94 2.26 0.00
8. RM 27 049.60, RM 205 744
9. 71 10. RM 2 000.08
11. RM 598.33
12. a) RM 4 067.25 b) RM 1 200, RM 2 867.25
c) RM 17 132.75 d) RM 1 027.97, RM 3 039.28

21
 TUNKU ABDUL RAHMAN UNIVERSITY COLLEGE
CENTER FOR PRE-UNIVERSITY STUDIES

Subject: FPMA 1064 Business Mathematics Tutorial number: 12

Topic covered: Depreciation

1. A company buys a new office machine at RM 6 000. The machine is expected to last for 4 years, at the
end of which time its trade-in value will be RM 1 200. Given that the flat rate depreciation method is
used.
a) What is the rate of depreciation of the machine?
b) Find an expression for the machine's book value at the end of t years.
c) What will be the book value of the machine at the end of the third year?

2. An office cabinet with a purchase price of RM 2 400 depreciates at RM 240 per year.
a) What is the rate of depreciation of the cabinet?
b) Find an expression for the cabinet's book value at the end of t years.
c) After how many years will the cabinet be written off (worth nothing)?

3. Rosman buys a van for his company at RM 120 000. Using the flat rate depreciation method and a
depreciation rate of 20% per year,
a) calculate the amount it will depreciate each year;
b) find an expression for the van's book value at the end of year t;
c) determine the book value of the van at the end of 3 years;
d) find the number of years after which the book value of the van be zero.

4. A company purchases a photocopier for RM 4 500. Using the flat rate depreciation method and a
depreciation rate of 20% of original value per year,
a) calculate the amount it will depreciate each year;
b) find an expression for the photocopier's book value at the end of year t;
c) determine the book value of the photocopier at the end of 2 years;
d) find the number of years the company will have a scrap value of RM1800 if it plans to sell the
photocopier when its scrap value reaches RM 1 800.

5. Suppose a business has an asset with an original book value of RM 6 000 and a useful life of 5 years,
after which the asset will become totally worthless (a scrap value of zero).
a) If the reducing balance rate of depreciation is 30%, calculate the book value of the asset after
i) 2 years, ii) 4 years.
b) Copy and complete the depreciation schedule below:
Book value Depreciation Accumulated Book value
Depreciation
Year year start expense depreciation year end
rate
(RM) (RM) (RM) (RM)
1 6 000 30% 1 800 1 800 4 200
2
3
4
5
6 1 008.42 Not applicable 1 008.42 6 000 Zero

6. The intercom system of a condominium originally cost RM 9 000 and has a depreciation rate of 30% per
annum. Using the reducing balance depreciation method, find the book value after
a) 2 years, b) 6 years.

22
7. Sin Hao purchases a photocopier for his office for RM 3 000 and he expects it to have a useful life of 4
years with a final book value of RM 949.22. Using the reducing balance depreciation method, find the
rate of depreciation per annum.

8. The reducing balance depreciation rate of a carpet cleaning machine is 20% per annum. After 5 years, the
book value of the machine is RM 6 000.
a) Given that the formula for calculating the book value of the machine after t years is
B = Bo(1 – r)t where
Bo = original book value,
r = rate of depreciation,
t = number of years,
B = book value at the end of t years.
Derive a formula for calculating the original book value of the machine.
b) Using the formula obtained in part (a), calculate the original book value of the machine.

9. A main frame computer whose cost is RM 220 000 will depreciate to a scrap value of RM 12 000 in 5
years.
a) If the reducing balance method of depreciation is used, find the depreciation rate.
b) What is the book value of the computer at the end of the third year if the reducing balance method of
depreciation is used?
c) How much more would the book value be at the end of the third year if the straight line method of
depreciation had been used?

10. A machine costing RM 25 650 depreciates to a scrap value of RM 500 in 10 years.

a) Calculate the annual percentage rate of depreciation if the reducing balance method of depreciation is
used.
b) Calculate the book value at the end of the sixth year.

Answers:

1. a) RM 1 200 per year b) B = –1 200t + 6 000 c) RM 2 400

2. a) RM 240 per year b) B = –240t + 2400 c) 10
3. a) RM 24 000 per year b) B = –24 000t + 120 000
c) RM 48 000 d) 5
4. a) RM 900 per year b) B = –900t + 4 500
c) RM 2 700 d) 3
5. a) i) RM 2 940 ii) RM 1 440.60
b) The depreciation table for the asset.
Book value Depreciation Accumulated Book value
Depreciation
Year year start expense depreciation year end
rate
(RM) (RM) (RM) (RM)
1 6 000.00 30% 1 800.00 1 800.00 4 200.00
2 4 200.00 30% 1 260.00 3 060.00 2 940.00
3 2 940.00 30% 882.00 3 942.00 2 058.00
4 2 058.00 30% 617.40 4 559.40 1 440.60
5 1 440.60 30% 432.18 4 991.58 1 008.42
6 1 008.42 Not applicable 1 008.42 6 000.00 Zero
6. a) RM 4 410 b) RM 1 058.84
7. 25%
8. a) B0 = B ÷(1 – r)t b) RM 18 310.55
9. a) 44.11% b) RM 38 408 c) RM 95 200
10. a) 32.55% b) RM 2 415.34
23