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QUEST INTERNATIONAL UNIVERSITY PERAK (QIUP)

FACULTY OF BUSINESS, MANAGEMENT AND SOCIAL SCIENCES

ASSIGNMENT

APRIL/MAY 2016

ASSIGNMENT COVER SHEET

Course Details
Subject Code : BBA 1105

Subject Title : BUSINESS MATHEMATICS

Course of Study : BACHELOR OF FINANCE (HONS)

Year & Semester : YEAR 1 AND SEMESTER 2

Lecturers Name : MS.MALATHI

Assignment Details

Due Date : 20 JULY 2016

Students Details

1. Name : NGIOM CHING MUN


2. Matric Number : BFI02243
3. Intake : JANUARY 2016

Assignment Overall Marks : _______________ Marks.

ASSIGNMENT QUESTIONS

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1 Jessica needs to do 13 payments for an investment. The investment is a
geometric progression. The fourth payment divided by the second payment
equals to 4. If the last payment is RM8,192, and the common ratio is positive,
find

I the common ratio


[3m]
II the first payment
[3m]
III the sum of all the payment .
[2m]

Suggested Answer :

I.
Formula Applied : Tn = arn-1
Equation Information: T4 / T2 = 4 , T13 = RM 8192 , r = ? , a = ? , S13 = ? .
T4 = ar(4-1) . First Equation
T2 = ar(2-1) .. Second Equation
By Dividing Equation (1) by equation (2) we get

= T4 = ar(4-1)
= T2 =ar(2-1)
ar 3
= ar =4
= r2 = 4
1
( )
=r=4 2

=r=2
Thus, The common ratio is 2
II.
Formula Applied : Tn = arn-1
Substituting the value of r into equation (2) we get

Tn = a(2)(13-1) = 8192
a (4096) = 8192
8192
a = 4096

a = 2

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Thus, The first payment of the investment was RM 2

III.
a(rn1)
Formula Applied : Sn = r1
Sum of the 13 payment of the investment is

2( 2(13)1)
S13 = 21

S13 = RM 16,382.00

2 Administrators of a university are debating the construction of a new building in


addition to the Faculty of Business Administration. They have estimated the total
amount needed at the time construction in 5 years to be RM21,300,000. The
University already has RM10,500,000 in a bank, earning 6 % per year. Find

I the future value of the amount in the bank in 5 years.


[7m]
II the shortage in 5 years.
[2m]
III the interest earned in part (I).
[2m]

Suggested Answer :

I.
Formula Applied : FV = M = P ( 1 + i )n
Equation Information : (i) = 6.5 % , P = RM 10,500,000 , n = 5

Solution :
= 10,500,000 ( 1 + 0.065)5
= RM 14,386,910

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II.
Shortage in 5 years
Solution :
RM 21,300,000 RM 14,386,910
= RM 6,913,090

III.
Formula Applied : M = P + I

Solution: I = M P

= RM 14,386,910 RM 10,500,000
= RM 3,886,910

3 Create an invoice for 5 items which related to the company you have suggested.
Find the total invoice amount that you have created if the trade discount is 5/10,
cash discount is 20/15, 10/25, n/60 and the invoice was paid on the 20 th day of the
invoice date. Include the shipping and insurance amount of RM 20 into the
invoice. More marks will be given for creativity of the invoice.
[16m]

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