CONFIDENTIAL CD/SAMPLE/MAT112

UNIVERSITI TEKNOLOGI MARA

FINAL EXAMINATION (SAMPLE)

COURSE : BUSINESS MATHEMATICS

COURSE CODE : MAT112
EXAMINATION : SAMPLE
TIME : 3 HOURS

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of two (2) parts : PART A (8 Questions)

PART B (7 Questions)

2. Answer ALL questions in the Answer Booklet. Start each answer on a new page.

3. Do not bring any material into the examination room unless permission is given by the
invigilator.

4. Please check to make sure that this assessment pack consists of :

i) the Question Paper

ii) a three – page Appendix
iii) an Answer Booklet - provided by the faculty

5. Answer ALL questions in English.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 6 printed

CONFIDENTIAL
pages © Hak Cipta Universiti Teknologi MARA
CONFIDENTIAL 2 CD/SAMPLE/MAT112

PART A

QUESTION 1

RM9,250 was deposited into an account on 25 April 2020. If the simple interest rate was
4.5% per annum, find the amount in the account on 8 September 2020 using exact time and
exact simple interest.
(5 marks)

QUESTION 2

A promissory note dated 10 May 2020 with face value of RM Y will mature on 10 August
2020. If the interest rate is 10.5% per annum and the maturity value of the note is
RM5,131.25, find the value of Y.
(5 marks)

QUESTION 3

Nizam invested RM3,200 in an investment scheme that offers k% interest compounded

every two months. At the end of six years, the accumulated amount was RM7,376. Find the
interest rate, k.
(5 marks)

QUESTION 4

Mr. Koo saved RM110 every three months in his saving account that pays 6.05%
compounded quarterly. Find the accumulated amount in his account after five years.
(5 marks)

QUESTION 5

Ali bought a computer listed at RM5,000. He was given trade discounts of 20%, 10% and
5%. Find net price of the computer.
(5 marks)

QUESTION 6

An android kids tablet costing RM200 was marked up 25% based on the selling price. Find
the selling price of the tablet.
(5 marks)

© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

CONFIDENTIAL 3 CD/SAMPLE/MAT112

QUESTION 7

Samsol bought a bedroom set with a mattress from a furniture shop for RM25,000 and paid
a down payment of 20%. He made 15 monthly payments to settle the balance with a 15%
interest on a reducing balance rate. Find the amount of interest charged using the constant
ratio formula.
(5 marks)

QUESTION 8

A farm tractor costs RM40,000. It has a life expectancy of 22 years with a scrap value of
RM10,500. By using the straight-line method, find the book value of the tractor at the end of
11 years.
(5 marks)

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CONFIDENTIAL 4 CD/SAMPLE/MAT112

PART B

QUESTION 1

Zainal received a 120-day promissory note from Zeti on 11 January 2022, with 10% simple
interest. He then sold the note 30 days before the maturity date at a discount rate of 9%
and received RM14,358.17. Find

a) the maturity value.

(4 marks)
b) the bank discount amount.
(2 marks)

QUESTION 2

Hakimi saved RM4,000 in his savings account at an interest rate of 6% compounded semi-
annually. Two years later, he saved another RM5,000. Find the accumulated amount in his
account three years after the first saving.
(8 marks)

QUESTION 3

A single storey bungalow is purchased by making a down payment of RM35,000. The

balance is to be paid in 25 years’ time with monthly installments of RM1,580. The interest
charged was 4.9% compounded monthly.

a) Calculate the cash price of the bungalow.

(6 marks)
b) If the buyer fails to pay the first five monthly installments, how much should the
buyer pay on the sixth payment to settle all the outstanding arrears?
(6 marks)

QUESTION 4

Rizalman ordered 15 units of dinner set and received an invoice dated 11 November 2020
for RM52,800 including transportation cost with cash discount terms of 9/10, 7/20 and
n/30. He was offered trade discount of 12% and 10%.The transportation cost was RM 300.
Find

a) the single discount equivalent to the trade discounts given.

(2 marks)
b) the last date to receive the 7% cash discount.
(2 marks)
c) the total payment if he pays the invoice on 21 November 2020.
(4 marks)
© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL
CONFIDENTIAL 5 CD/SAMPLE/MAT112

QUESTION 5

A boutique owner bought 200 lipsticks for RM1,600. She then sold the lipsticks and
wanted to make a 30% net profit based on the selling price. If the operating expenses
incurred in selling the lipsticks were 12% of the cost, find

a) the selling price for each lipstick.

(6 marks)
b) the maximum percentage of markdown that could be offered so that no loss is
incurred.
(6 marks)

QUESTION 6

The cash price of a dryer machine is RM3,000. Under an instalment plan, Sarah wants to
buy the machine without a down payment and make 40 weekly payments. If the interest
charged is 13% based on the original balance, find

a) the amount of interest charged.

(3 marks)
b) the weekly payment.
(2 marks)
c) the outstanding balance if Sarah wishes to settle the loan immediately after the
30th payment by using the Rule of 78.
(3 marks)

QUESTION 7

Lotti Bakery bought a mixer at the cost of RM12,500. It is expected to last for eight years
and has a salvage value of RM4,700. Calculate the annual rate of depreciation and the
book value of the mixer at the end of four years by using the declining balance method.
(6 marks)

END OF QUESTION PAPER

© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

 CONFIDENTIAL APPENDIX (1) CD/SAMPLE/MAT112

LIST OF FORMULA

Simple Interest

1. Simple Interest, I = P r t

2. Simple Amount, S = P ( 1 + r t )
where

P : Principal
r : rate of simple interest, and
t : time or term in years

Bank Discount and Promissory Note

1. Bank Discount, D = S d t

2. Proceeds = S (1 − dt )
d
3. Simple Interest Equivalent to Bank Discount Rate, r =
1− d t
r
4. Bank Discount Rate Equivalent to Simple Interest Rate, d =
1+ r t
where

S : maturity value, and

t : term of the note/discount terms

Compound Interest

Future Value, S = P(1 + i )

n
1.

where

P : Principal
i : interest rate per interest period, and
n : number of interest periods
 CONFIDENTIAL APPENDIX (2) CD/SAMPLE/MAT112

Annuity

 ( 1 + i )n − 1 
1. Future Value, S = R  
 
 i 
1− ( 1+ i )− n 
2. Present Value, A = R 
 
 i 
where

R : periodic payment (of same value)

i : interest rate per interest period, and
n : number of interest periods (or payments)

Trade and Cash Discount

1. Net Price, NP = L ( 1 − r1 )( 1 − r2 ) ... ( 1 − rn )

2. Single Discount Equivalent, r = 1 −  ( 1 − r1 )( 1 − r2 ) ... ( 1 − rn )

where

L : list price, and

r1 , r2 , ... , rn : chain discount

Markup and Markdown

1. Retail/ Selling Price, R = C + M

2. Markup, M = OE + NP
R − BEP
3. Maximum Markdown Percent, % MDmax =  100%
R
where

C : cost price
OE : operating expenses
NP : net profit
MD : markdown, and
BEP : breakeven price
 CONFIDENTIAL APPENDIX (3) CD/SAMPLE/MAT112

Installment Purchase

2mI
1. Annual Interest Rate, r =
B ( n +1 )

2. Installment Price, IP = CP + I
B+I
3. Monthly/ Weekly Payment, R =
n
 N ( N + 1) 
4. Original Outstanding Balance, B = RN − I  
 n(n + 1) 
where

m : 12 for monthly installments and 52 for weekly installments

I : total interest charged for installment plan
n : total number of installments (or payments)
CP : cash price, and
N : number of payments yet to be settled

Depreciation

C-S
1. Annual Depreciation, D =
n

2. Book Value, BV = C − k D

S
3. Rate of Depreciation, r = 1 − n
C
4. Book Value, BV = C ( 1 − r )k
where

C : cost
S : salvage value
n : useful life, and
k : number of years