MTH302 Midterm Past Paper Spring 2006 Session 1

Anjum Habib · MTH302 Business Mathematics and Statistics · Mid Term Examination – Spring 2006 (session I) · Time Allowed: 90 Minutes · the questions:

d. Attempt all the questions on Excel sheet and use only one excel sheet to solve all the questions. More then one sheets are not acceptable e. Solve the questions on excel sheet in usual manner i.e. from upward to downward not from left to right.

Q1. Marks : 5

Ray’s Appliances bought a Motor bike for Rs. 60000. To make the desired profit; he needs a 40% Markup on Cost. What is Ray’s Rs. Markup? What is his Selling price?

Q2. Marks : 10

If Fixed Cost = Rs 3450, Sale =S = Rs200, Capacity = 500 units. Determine the BEP as % of capacity if FC is increased to Rs 5500 and VC is reduced to 50% of S.

Q3. Marks : 10

a)

Find the net purchase price of an office table listed at Rs. 6000 and sold with trade discounts of 20% and 10%

Marks 5

b)

Find the Inverse of following metrics using suitable Excel formula

A =

Marks 5

Q4. Marks : 10

1. Find the compound interest when Rs 24000 is invested for 2 years and 4 months at 10% compounded annually.

Marks 5

b) The annual rate of interest is 15%. The period of the loan is 8 years. The present value is Rs 35000 Calculate using CUMIPMT Excel function total interest paid in the second year of payments, for Periods 9 through 15. What is the interest paid in a single payment in the first month?

Marks 5

Q5. Marks : 10

a). Calculate XIRR the internal rate of return: Marks 5

January 1, 2007 -25,000 March 12, 2007 10,500 October 3, 2007 5500 February 1, 2008 2500 May 10, 2008 2000

b) Use EXCEL function NPV to find the net present value of an investment, when annual discount rate is 15%, initial cost of investment one year from today is 225000. Return from first year is Rs. 35000; Return from second year is 45000; Return from third year is 55000.