FACULTY OF SCIENCES

DEPARTMENT OF PURE AND APPLIED MATHEMATICS

MODULE: BUSINESS MATHEMATICS 100 – MAT100

CAMPUS: APK

ASSESSMENT: EXAM

DATE: 6 JUNE 2016

ASSESSOR: MR RJ MAARTENS

INTERNAL MODERATOR: DR UA KOUMBA

73
DURATION: 2 HOURS

INITIALS AND SURNAME: ________________________________________________________

STUDENT NUMBER: ________________________________________________________

CONTACT NUMBER: ________________________________________________________

NUMBER OF PAGES: 4 (INCLUDING COVER PAGE)

INSTRUCTIONS:
 ANSWER ALL THE QUESTIONS IN PEN.
 ALL GRAPHS MUST BE DRAWN IN PEN.
 NO PENCIL OR TIPEX ALLOWED.
 SHOW ALL THE NECESSARY CALCULATIONS CLEARLY.
 IF FORMULAS ARE USED THEY MUST BE STATED AS MARKS ARE GIVEN TO THEM.
 SCIENTIFIC AND FINANCIAL CALCULATORS ARE ALLOWED.
 IF NECESSARY, ROUND OFF TO TWO DECIMAL PLACES.
 THE QUESTIONS CAN BE ANSWERED IN ANY ORDER.
Business Mathematics 100 – MAT100 – Exam – 2016
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Question 1 ONLY WITH A FINANCIAL CALCULATOR [11]

1.1 Seven years ago, an investor bought 200 shares in Platinum Mines for R7.50
each. If the shares are currently trading at R11.96 per share, determine the
nominal rate of interest, compounded quarterly, that was earned on the shares.
[2]

1.2 A home loan worth R650,000 at 8.32% per year, compounded monthly, is paid
off with monthly payments of R5,450.48. How long will it take to pay off the
loan if payments are made at the beginning of each month? [2]

1.3 A trusted friend of yours present you with an investment opportunity. If you
invest R26,500 now into this investment, then your friend can guarantee the
following cash inflows to occur:

Year 2 4 6 9
Cash flow R16,500 R11,500 R3,500 R8,750

If the effective discount rate is 10.25% per year determine the net present value.
[2]

1.4 An effective rate of 9.68% per year is equivalent to what nominal rate
compounded semi-annually? [2]

1.5 Isabella is struggling to pay her monthly debts. She approached her bank
recently and they recommended that she takes out a revolving credit loan of
R45,000 to consolidate all of her debts. The terms and conditions of this loan
states that the loan must be paid back monthly over 5 years at a nominal rate of
6.5% per year, compounded monthly. Determine: [3]

 The principal contained in the 25th payment.

 The balance outstanding after the 50th payment.
 The final payment (with the adjustment).

Question 2 [4]

Simplify the following expression:

(𝑎𝑏 4 )(𝑎2 𝑏)−3

4
√𝑎−1 𝑏 3

Question 3 [2]

Rationalize the denominator of the following fraction:

6𝑥 − 1
3
√3𝑥 7
Business Mathematics 100 – MAT100 – Exam – 2016
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Question 4 [6]

Solve for 𝑥 in the following equations:

4.1 3𝑒 1−2𝑥 = 5 [2]

4.2 log(𝑥) + log(𝑥 + 3) = 2 [4]

Question 5 [4]

Determine the equilibrium quantity and price of a product with the following supply
and demand function:
𝑝
= √𝑞 + 2 and 𝑞 =𝑝+1
2

Question 6 [9]

Solve for 𝑥, 𝑦 and 𝑧 simultaneously in the following system by using matrices and the
method of reduction:

𝑥 + 2𝑦 + 𝑧 = 4
{2𝑥 − 4𝑦 − 5𝑧 = 26
2𝑥 + 3𝑦 + 𝑧 = 10

Question 7 [7]

Given the following matrices:

1 2 −1 1 −2 7 3 −2
𝐴=[ ] 𝐵=[ ] 𝐶=[ ]
−1 2 4 0 3 1 4 5

Determine:

7.1 𝐵𝑇 𝐴 [3]

7.2 3𝐴 − 2𝐶 [3]

7.3 𝐵2 [1]

Question 8 [9]

Given the following system of constraints:

𝑥 + 2𝑦 ≥ 80 3𝑥 + 2𝑦 ≥ 160 5𝑥 + 2𝑦 ≥ 200 𝑥, 𝑦 ≥ 0

8.1 Graph all of the inequalities on the same set of axes, clearly indicating all
intercepts and the feasible region. [5]
Business Mathematics 100 – MAT100 – Exam – 2016
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8.2 Determine the corner points of the feasible region. [3]

8.3 If possible, determine the value of 𝑥 and 𝑦 that will minimize the following
function : 𝑍 = 2𝑥 + 2𝑦. [1]

Question 9 [10]

Consider a standard deck of cards without Jokers.

9.1 What is the probability of drawing 3 red cards and 1 black cards in any order?
[2]

9.2 What is the probability of first drawing two facial cards followed by a card
numbered 8? [2]

We now draw two cards from the deck, first the one and then the other without
replacement, and then we record the suite of the two cards.

9.3 Draw a complete tree diagram that shows all the possibilities and probabilities.
[3]

9.4 Determine the probability that the first card is a heart if it is given that the second
card is a diamond. [3]

Question 10 [5]

𝑑 1
Prove the following differentiation rule: ln(𝑥) = 𝑥
𝑑𝑥

Question 11 [6]

𝑥 2 +2𝑥−24
Given the function: 𝑔(𝑥) = 2𝑥 2 −9𝑥+4

Determine the equation of the tangent line at 𝑥 = 2.

End of assessment – Total marks 73