Excellent grade evening school

Situated at KM5- CARREFOUR WHATSAPP

PRE-MOCK

NAME: CLASS: ADVANCED LEVEL ACADEMIC YEAR: 2020/2021

SUBJECT: BUSINESS MATHEMATICS COEF: 5 DURATION:1 hr:30 mins

Follow all instructions

- ANSWER ALL QUESTIONS
- Mark (x) in the corresponding answer
- No use of calculators
- Only HB6 pencil is used
- Marking more than two answers zero will be taken as a mark for the question.
- Do not forget to write your name on your question paper and answer sheet.
- U can use to question paper to do your rough calculation
 SECTION A: MULTIPLE CHOICE
1. The formula Tn= a + (n-1)d is used to determine;
[a] The first term of an AP
[b] The nth term of a GP
[c] The nth term of an AP
[d] The sum of the first nth term of an AP
2. The geometric progression is characterized by the presence of;
[a] Common difference
[b] Common ratio
[c] Progression ratio
[d] An nth term
3. How much will Marie save during the 8th week if she saved 15 400 FRS during the 11st week and 16 200
FRS during the 2nd week following an AP.
[a] 84 000FRS [b] 21 000FRS [c] 198 000FRS [d] 90 400FRS
4. A company began production in the year 2011 with 500 units with the intention of increasing
production each subsequent year by 25 units. What will be the production figure in 2020?
{a] 725 units [b] 225 units [c] 525 units [d] 750 units
5. The 5th term of a GP where the 1st term is 20 is 512. What is the common ratio?
[a] 2 [b] 4 [c] 256 [d] 3
6. Depreciation is?
[a] The amount spent to buy a fixed asset.
[b] The salvage value of a fixed asset
[c] The amount of money spent in replacing assets.
[d] The part of cost of fixed assets consumed during its period of use by the firm.
7. The value of a tangible fixed assets remaining at the end of its estimated useful life span is called?
[a] the original cost [b]The salvage value [c] The accumulated Value [d] None of this.
8. An asset costing 8 000 000FRS has a life of four years, after which it is sold for 500 000FRS. What is the
constant rate of Depreciation method?
[a] 20% [b] 50% [c] 25% [d} 33%
9. The depreciation method whose Depreciation charge is accumulated in an account to earn interest is
known as:
[a] The diminishing balance method
[b] The constant balance method
[c] The sinking fund method
[d]The sum of digit method.
10. A firm bought a motor Van for 3 200 000FRS to be depreciation at 25% P.A. using the reducing balance
method. What will be the residual value after two years?
[a] 80 000FRS [b] 1 600 000FRS [c] 1 800 000FRS [d] 2 400 000FRS
11. A company bought a machine for 16 000 000 FRS to be used for five years. The machine was sold for 1
000 000FRS. What is the Depreciation charge if the constant installment method is used?
[a] 3 200 000FRS [b] 3 750 000FRS [c] 3 000 000FRS [d] 3 100 000FRS
12. What is the NPV of a project with PI 25% and initial cost of 20 000 000FRS.
[a] 25 000 000FRS [b] 15 000 000FRS [c] 5 000 000 FRS [d] 800 000FRS
13. What is the effective interest rate on a nominal rate of 12% compound three monthly.
[a] 12.49% [b] 2.55% [c] 12.36% [d] 2.685%
14. How long will it take 400 000FRS to increase in value by 8 000FRS when invested at 5%PA. Compound
interest.
[a] 4 years [b] 3.7 years [c] 5 years [d] 32.98 years
15. A man took 250 000 FRS on the condition to give 280000FRS after 30 months. At what rate of simple
interest was interest charged.
16. When estimating median by linear interpolation we assume that
[a] The class width are the same [b] The class mid points are high [c] The observation are distributed
uniformly throughout the median class. [d] The median class exist.
17. The mean of 6 numbers id 9and the mean of four different number is 5. The mean of the ten numbers
combine is: [a] 7.4 [b] 7 [c] 74 [d] 14
The length of 30 rods produced by a certain machine are as follows

Length in cm 10-14 15-19 20-24 25-29

Frequency 3 9 13 5

18. What is the class width: [a] 4cm [b] 5cm [c] 12cm [d] 13cm
19. What is the median class: [a] 10-14 [b] 20-24 [c] 15-19 [d] none of the above?
20. What is the mean? [a] 13.4 [b] 20.33+ [c] 16.8 [d] 27.2
21. Break-even point represent the level of output at which ;
[a] TR= 0
[b] TR = TC
[c] TR ˃ TC
[d] TR ˂ TC
22. The level of output or level of operation which causes zero profit is classified as:
[a] prime point
[b] EOQ point
[c] Break-even point
[d] Odd point
23. At the break-even point which of the following relationships does not hold true?
[a] Number of units = fixed cost/ contribution per unit
[b] Profit = contribution + fixed costs
[c] Sales value = fixed costs/contribution to sales ratio in%
[d] Contribution = fixed costs
24. A product has a selling price of 10 FRS and marginal cost of 5 FRS. Sales for March are 100 000 FRS and
fixed cost for March is 20 000 FRS. What is the profit for March?
{a] 40 000FRS [b] 50 000 FRS [c] 30 000 FRS [d] 20 000 FRS
25. After depositing 600 000 FRS, a woman paid interest of 24,750 FRS on a balance of 900,000FRS payable
in 10 monthly installments. What was the simple interest rate charged in this contract?
[a]2.75% [b]4.125% [c]6% [d]3.3%
26. For a symmetrical distribution,
[a] Mean ˂ Median ˂ Mode
[b] .Mean = Median= Mode
[c] Mean ˃ Median ˃ Mode
[d] Mode ˂Median ˂Mean
27. In a negatively skewed distribution,
 [a] Mean ˂ Median ˂ Mode
[b] .Mean = Median= Mode
[c] Mean ˃ Median ˃ Mode
[d] Mode ˂Median ˂Mean
28. In order to compute Pearson coefficient of skewness of any distribution we need to know
[a] Only the mean and standard deviation
[b] Only the median of standard deviation
[c] Only the mean and the median
[d} only the mean, the median and standard deviation
29. If a correlation regression is -1 it signifies,
[a] A weak negative correlation
[b] A strong negative correlation
[c] A perfect negative correlation
[d] A perfect positive correlation
30. The value of a correlation coefficient lies between
[a] -1≤ r ≤1 [b] r = 1 [c] -1˂ r ˂1 [d] 0˂ r ˂1
31. A project has an average profit of 5 000 000FCFA and an initial cost of capital of 40 000 000FCFA. What
is the ARR?
[a] 20% [b] 12.5% [c] 25% [d] none of the above
32. A project has N1 = 30 000FCFA and I1 = 20, N2= -5 000FCFA and I2 = 22. What is IRR
[a] 20.7 [b] 23.71 [c] 21.71 [d] none of the above
33. What is the profitability index of a project with NPV = 2 500 000FCFA and initial cost of 20 000
000FCFA?
[a] 50% [b] 25% [c] 12.5% [d] none of the above
34. What is the NPV of a project with PI of 25% and initial cost of 20 000 000FCFA?
[a] 25 000 000FCFA [b] 15 000 000FCFA [c] 5 000 000FCFA [d] 800 000FCFA
35. A purchase agreement where a customer collects goods to make payments later is known as:
[a] hire purchase [b] credit purchase [c] cash purchase [d] trade credit.
36. In a hire purchase agreement, the buyer becomes the legal owner of the goods when;
[a] he pays an initial deposit [b]he pays 2/3 of the listed price
[c] he pays the last installment [d]he agrees to pay the balance with interest
37. The hire purchase price is made up of :
[a] cash price [b[ the deposits and installments
[c] cash price and interest [d] the installment and interest.
38. 3/7 =+5/21 = [a] 24/12 [b] 8/28 [c] 14/21 [d] 10/26
39. Which fraction is NOT equivalent to 0.46: [a] 46/100 [b] 46/10 [c] 460/1000 [d] 23/50
40. 4/9 -13/45 [a] 9/36 [b] 9/45 [c] 7/45 [d] 5/32
41. What is the number 2/10 +4/100 + 6/1000 equal [a] 2.46 [b] 246 [c] 0.246 [d] 0.0246
42. At 5% per Annum simple interest, Mr. Rahul borrowed 500f what amount of money will he clear his debts after 4 years.
[a] 750 [b] 700 [c] 650 [d] 600
43. Find the rate of simple interest at which 500 000 FRS becomes 4 times itself after 15 years.
[a] 10% [b]20% [c] 30% [ d] 40%
44. A set of possible data values for a subject under consideration is called
[a] A sample [b] A statistics [c] A parameter [d] A population
45. Some numerical measurement describing some characteristics of a population is called
[a] A sample [b] A statistics [c] A parameter [d] A population
46. Given the distribution 1,2,4,6. The value of the harmonic mean is
[a]5 [b] 14/4 [c] 16/7 1/4log72
47. For the distribution 2,3,4,5, the geometric mean is
[a] 14/4 [b] 3 [c] 204/7 [d] 40
48. Given the following distribution of mass measured to the nearest Kg

Mass (Kg) 60-64 65-69 70-74

frequency 6 10 8
An estimate of the median mass is
[a] 68 [b] 66.9 [c] 67.4 [d] 67.5
49. What is the mean?
[a] 68 [b] 67.4 [c] 67.5 [d] 66.9
50. What is the mode?
[a] 67.2 [b] 66.9 [c]67.4 [d]67.5
 Excellent grade evening school
Situated at KM5- CARREFOUR WHATSAPP
PRE-MOCK

NAME: CLASS: ADVANCED LEVEL ACADEMIC YEAR: 2020/2021

SUBJECT: BUSINESS MATHEMATICS COEF: 5 DURATION:2 hr:30 mins

PAPER II

1. Calculate the annual rate of interest on

A) 12.5% compounded monthly
B) 14% compounded half yearly
C) 19% compounded quarterly (10 mks)

2. A project has the following cash flow occurring at the end of each year.

year 0 1 2 3 4 5
Cash flows (000) (100) (50) 40 80 60 40
A. Calculate the NPV assuming 15% PA cost of capital.
B. The NPV assuming 12% PA cost of capital.
C. Calculate the IRR
D. Comments on the results of both situation

3. A firm sells its products at 800 FRS each, the marginal cost is 500 FRS. Given that the firm budgeted to
sell 5000 units for the period with fixed cost of 900 000 FRS. Calculate;
i) The contribution margin ratio
ii) The margin of safety in value and in units
iii) The BEP in units and sales.
iv) The contribution and profit/loss when 2800 units are sold.
v) The units to be sold in order to earn the profit of 120,000 FRS 20 mks
4. A series of four principals in arithmetic progression is invested at 15% p.a for 9 months and yields a total
interest of 123750 FRS. The difference between the last and the last principal is 150 000 FRS. Determine:
a) The common difference
b) The sum of the four principal
c) Each principal
5. NOBLES is a common initiative group which bought a computer for 500 000FRS it is estimated that the
useful lifespan will be 12 years at the end which it shall be scrapped at one-fifth the original cost.
A) Find the rate of depreciation using the reducing balance method at which this aim will be realized.
 B) Use the calculated rate from “a” above ( to the nearest whole number) to show in a table of
depreciation schedule for the first 6years of the life of the asset.
C) Given that this asset was scrapped at 1/8 the original cost after 7 years, using the straight line
method. What will be the annual depreciation in this case,.
6. A) What is a hire purchase transaction?
B) AIRCAM initiates to buy a plane for $275M on a hire purchase scheme. It is paid 27.27% of the listed
price down and the rest to be paid in equal installments over four quarters. Given that the worth of each
installment was $52.M. determined the rate of interest reckoned.
 Excellent grade evening school
Situated at KM5- CARREFOUR WHATSAPP
PRE-MOCK

NAME: CLASS: ADVANCED LEVEL ACADEMIC YEAR: 2020/2021

SUBJECT: BUSINESS MATHEMATICS COEF: 5 DURATION:2THE FOLLOWING

hr:30 mins

PAPER III
1. The following data relates to the salesmen employed by electronics firm in a particular town.

Number of sales 0-4 05-09 10-15 15-19 20-24 24-29

Number of sales men 1 14 23 21 15 6
A) Calculate the mean of the sales
B) Calculate the median using linear interpolation and graphical method
C) What is the modal class? (20mks)
2. The lateness of six workers to work measure to the nearest minutes for one work day and the following
data are obtained.

LATENESS 1-5 6-10 11-15 16-20 21-25

NUMBER OF LATE COMERS 12 16 20 14 8

DETERMINE
A) the first quartile Q1
B) the third quartile Q3
C) the semi- interquartile range
3.