Sheet1

ANSWER-1
a) A= 500 200 350 WHERE A IS AS SALES MATRIX
400 300 100
250 425 50
100 150 350
200 175 225

B= 1
1
1

A*B= 1050 =D is a demand matrix

800
725
600
600

b) Q= DTXR
DT= 1050 800 725 600 600

R= 1 0 2 0
1 1 1 0
2 1 0 3
0 2 1 1
1 2 3 1

Q= 3900 3925 5300 3375

c) M=Q X P
Q= 3900 3925 5300 3375

P= 2 0 1 2
1 3 2 5
0 2 1 4
0 4 1 1

M= 11725 35875 20425 52000

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d)
TOTAL COST = CXMT
MT= 11725
35875
20425
52000
46475

C= 25 15 30

TOTAL COST= 2335800

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WHERE A IS AS SALES MATRIX

WHERE R IS MATRIX INDICATES THE NO. OF EACH COMPONENTS USED IN PRODUCING EACH PRODUCT

3
1
2
6

46475

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10 8

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DUCING EACH PRODUCT

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ANSWER-2
consumption sector
I) Production sector X Y Z DOMESTIC DEMAND
X 90 24 20 166
Y 60 96 20 64
Z 90 24 60 26

NEW TECHNOLOGY MATRIX

90/300 24/240 20/200

A= 60/300 96/240 20/200
90/300 24/240 60/200

II) Technology coefficient a23 that is 20/200 in the technology matrix means that sector Z is consuming 20 units of

III) If technology matrix would have been 0.00 then it means that Z sector has used its own output for consumption

IV) The first column of the table given above depicts how much units of output has been consumed by sector X from
a11=0.30 sector a uses 30% of its own

V) Sum of second rows

The second row of technology matrix describes how much sector Y demands from sector X&Z to produce one u
Sum of second rows = 0.2+0.4+0.1=0.7

This means that 70% of sector Y output is dependent on intermediate of x,y,z and 30% of production is from ex

sum of second column

2nd column represents how much x,y,z contribution in producing one unit of output in sector y

sum of second column =0.2+0.4+0.1=0.6

VI)
I= 1 0 0
0 1 0
0 0 1

A= 0.3 0.1 0.1

0.2 0.4 0.1
0.3 0.1 0.3

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I-A= 0.7 -0.1 -0.1

-0.2 0.6 -0.1
-0.3 -0.1 0.7

DET(I-A)= 0.25
As both the determinents and the principal diagonals are also positive so it posses hawkins simons test

VII) (I-A)-1 1.64 0.32 0.28

0.68 1.84 0.36
0.8 0.4 1.6

(I-A)-1 X D
1.64 0.32 0.28
0.68 1.84 0.36
0.8 0.4 1.6

150
200
250

380
560
600

VIII) balancing equation of each sector

x sector
x1= 1+a12*x2+a13*x3+d1
x1= 380

y sector
x2= 1+a22*x2+a23*x3+d2
x2= 560

z sector
x2= 1+a32*x2+a33*x3+de
x2= 600

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SUM
300
240
200

0.3 0.1 0.1

0.2 0.4 0.1
0.3 0.1 0.3

s that sector Z is consuming 20 units of output of sector Y inputs for pr

as used its own output for consumptions rather it has distributed all its unit of output to other sector and to domestic demand

put has been consumed by sector X from itself and from other sector y&z

mands from sector X&Z to produce one unit of output

x,y,z and 30% of production is from external

t of output in sector y

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so it posses hawkins simons test

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nd to domestic demand

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ANSWER-3

INVESTMENT -300000
BANK DEPOSITS – X
EQUITY SHARES-Y
UNIT TRUST-Z

x+y+z=300000 Eqn 1
0.2x-y+0.2z=0 Eqn 2
3x+y-2z=0 Eqn 3

A= 1 1 1
0.2 -1 0.2 X=
2 0 -3

B=

Determinant adjoint of matrix a 6

3 3 1.2 therefore values are

1 -5 0
2 2 -1.2 bank deposits – 15000
equity shares – 5000
formula X=1/determinant*adjt of A*B unit trust-10000

X= 15000
5000
10000

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X
Y
Z

300000
0
0

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ANSWER-4
GIVEN
LOAN 30000
N 6
i 0.6

INSTALMENTS
I 5000 PRESENT
II 15000 -3
III 4750 ?

SOLUTION
LHS 21148.81621
RHS 17594.28925

EQUATING LHS AND RHS 3554.526968 4750*(1.06)^-n

0.7483214669

Taking log both side

-0.1259117961 Nlog1.06 *log(1.06)=

n= 4.975597349
5 years

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-0.02530587

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ANSWER-5

GIVEN:
EFFECTIVE RATE- 10.38%
RATE-?
NO. OF COMP0UNDING - 4

SOLUTION

FORMULA {(Re+1)^n/m)-1}

10.00%

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ANSWER -6

GIVEN-
BORROWINGS- 1200000
RATE-9 YEARS
N-9
N(at the end of 4th yr) – 3

SOLUTION
LHS - 1200000
RHS - 3.463952228

R= 346425.10

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ANSWER-7

GIVEN--

Amount at the end of 2nd year-- 4686.64

Amount at the end of 4th year -- 5491.14
Money deposited ---- ?
Interest Rate--- ?
Compounding in a year --- 4

SOLUTION

PART -1 (FINDING INTEREST RATE )

Equation -1 p(1+I/4)^16 5491.14

Equation -2 p(1+I/4)^8 4686.64

Dividing the equations

(1+i/4)^8 1.17165816

Taking log both the sides

8log(1+i/4) 0.06880092159

log(1+i/4) 0.0086001152

taking antilog (1+i/4) 1.019999867

(I/4) 0.1999986715

i= 0.07999946862 Or 8%

Part-2 finding principle amt

putting the values of interest P(1+0.08/4)^8 4686.64

P(1.1716) 4686.64

P= 4000.2

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