CONFIDENTIAL CD/FEB 2023/MAT112

UNIVERSITI TEKNOLOGI MARA

FINAL EXAMINATION

COURSE : BUSINESS MATHEMATICS

COURSE CODE : MAT112
EXAMINATION : FEBRUARY 2023
TIME : 3 HOURS

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.

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

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

i. the Question Paper

ii. a one – page Appendix (List of Formula)
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 5 printed pages
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QUESTION 1

a) On 3 January 2020, Ellen deposited some money in an account that offered an

interest rate of 5.8% per annum. If she earned RM8,157.20 on 7 May 2020, find the
initial deposit using approximate time and exact simple interest.
(5 marks)

b) Umar took a loan of RM8,000 from a bank for 27 months. If he paid RM1,080 as
interest at the end of the loan period, find the rate of interest.
(3 marks)

c) Kamala received a promissory note on 15 April 2022 from Tirmizi with a simple
interest of 5% per annum and the face value of the note was RM5,000. The note
matured on 16 August 2022. However, 23 days before the maturity date, she
discounted the note to a bank and received proceeds of RM4,900.

i) Determine the payee of the note.

(1 mark)
ii) Find the maturity value of the note.
(5 marks)
iii) Find the amount of discount received.
(2 marks)
iv) Find the discount date.
(2 marks)
v) Find the discount rate that is equivalent to the simple interest rate.
(2 marks)

QUESTION 2

a) A bank offers an interest rate of 4.2% compounded quarterly for the first 5 years and
5% compounded semi-annually for the next 5 years. If a man wants to invest
RM10,000 for 10 years in that bank, find the total amount he will receive when the
investment period ends.
(6 marks)

b) Seven years and eight months ago, Jonny saved RM25,000 into an account with an
interest rate of 6% compounded every four months. Today, he has withdrawn RM3,000
from the same account. Find the balance in his account after the withdrawal.
(4 marks)

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c) Global Sdn. Bhd. received an invoice for a set of furniture dated 15 July 2022 in the
amount of RM9,700, including a transportation cost of RM250. The trade discounts
were 14% and 7%, and the cash discount terms were 10/7, 8/14, and n/30. Find

i) the single discount rate that is equivalent to the series of trade discounts given.
(2 marks)
ii) the last date to receive 10% and 8% cash discount.
(3 marks)
iii) the total payment if the payment was made on 26 July 2022.
(5 marks)

QUESTION 3

a) RM800 is deposited every six months in an account for 13 years at 5.4%

compounded semi-annually. Find the amount in the account at the end of 5 years and
6 months.
(4 marks)

b) Ameena borrowed a certain sum of money from a financial institution that charged
4.8% compounded monthly. She must pay RM725 every month for 9 years. Calculate
the initial value of the loan.
(4 marks)

c) Puan Mariani needs to pay RM268 every month for a loan of RM10,554 from XYZ
Bank at 18% compounded monthly.

i) Calculate the number of equal payments required.

(5 marks)

ii) If Puan Mariani failed to pay the first five monthly payments, how much should
she pay on the sixth payment to settle the outstanding arrears?
(5 marks)

QUESTION 4

a) The cost of a smartwatch is RM600. Find the selling price of the smartwatch if it was
sold with a gross profit of 14% based on cost.
(4 marks)

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b) A retailer bought 42 sling bags at RM130 per bag. She planned to sell all the bags for
a net profit of 27% based on the selling price and the operating expenses incurred
were 10% based on cost. Compute

i) the total selling price if she managed to sell all the bags.
(6 marks)
ii) the maximum percentage of markdown that could be offered without incurring
any loss.
(6 marks)

QUESTION 5

a) Alia bought a water filter for her family with a cash price of RM9,750. She paid a 10%
down payment and the balance is to be paid in 60 monthly payments at interest
charged of 11% per annum based on the original balance. Find the monthly payment
of the water filter.
(4 marks)

b) A home theatre system selling for RM3,504.09 cash can be purchased for a 25% down
payment. The remaining balance is repayable in 24 monthly instalments. If the interest
rate charged is 5.5% on reducing balance, find

i) the interest charged using the Constant Ratio Formula.

(3 marks)
ii) the monthly payments.
(3 marks)
iii) the instalment price of the home theatre system.
(2 marks)
iv) the outstanding balance if a buyer wishes to settle the loan immediately after
the 20th payment by using the Rule of 78.
(4 marks)

c) A motorcycle costing RM8,500 has a useful life of 7 years. If the book value of the
motorcycle at the end of 3 years is RM5,371.42, find its scrap value at the end of 7
years using the Straight Line Method.
(5 marks)

d) 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.
(5 marks)

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END OF QUESTION PAPER

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