MTH302 Midterm Past Paper Spring 2006 Session 2

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

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 : 10

1. Calculate IRR after 5 years and 2 years. With a guess of10%: Marks 5

Initial cost of a business -89000 Net income for the first year 34000 Net income for the second year 36000

Net income for the third year 45000 Net income for the fourth year 25000 Net income for the fifth year 36000

b)

Calculate using AMORLINC function, First period depreciation: Cost = 25000 Date purchased = 05/18/2005. End of the first period =12/20/2005 Salvage value =1800 Period = 1 Depreciation rate =12% .

Marks 5

Q2. Marks : 10

1. The ratio of milk, chocolate syrup and sugar syrup is 5: 4.5: 3 in a chocolate ice-cream. If you have 12 liters of milk, how much chocolate and sugar syrup is required?

Marks 5

b) A firm keeps details of component parts used in the make-up of each product ( matrix Y) and products (matrix X) as follows:

Product Y = Products X =

Using matrix multiplication, find a matrix that describes the number of component parts used. Marks 5

Q3. Marks : 10

If Fixed Cost=2000Rs, Variable Cost= Rs 105, Sale S= Rs 230, Capacity = 350 units. What unit sale will generate NI of Rs. 3200? Note that unit sold is 150.

Q4. Marks : 10

1. The annual rate of interest is 9 %. The period of the loan is 5 years. The present value is 200,000 Rs. Calculate using CUMPRINC Excel function total interest paid in the second Year of payments, for periods 10 through 18. What is the principal paid in a single payment in the first month?

Marks 5

b) Find the simple interest on 6 months loan of Rs 55000 that has an annual interest rate of 9.21%.