Team/Group-Based Assignment

Course Data
Course Instructor: Miss Sheila M. Sison  Full time  Part time

Course Code: MATH 104 Course Title: Mathematics for Business

Academic Year: 2021-2022 Semester: 1st  2nd  Summer

College: Business Administration

Department: Business Management Program: Business Management; Finance and Accounting;
Finance and Banking
Assignment No.:  1st  2nd  3rd  4th  5th

Start Date: September 28, 2022 Submission Date: On or before 7th December 2022
Assignment Title/Topic: Numerical Problems
Group Name/Code: Number of Students: 3 members per team

CILOs Mapping
No. Assessment Criteria Measured CILO Maximum Mark Marks Awarded
1 Numerical Analysis B1 2.0
2 Numerical Analysis B1 2.0
3 Numerical Analysis B1 2.0
4 Numerical Analysis B1 2.0
5 Numerical Analysis B1 2.0
6 Numerical Analysis D1 2.0
7 Numerical Analysis D1 2.0
8 Numerical Analysis D1 2.0
9 Numerical Analysis D1 2.0
10 Numerical Analysis D1 2.0
Total Marks - 20.0

Feedback to Students:
Individual

Students’ Data/Course Instructor’s marking Criteria and Distribution:

Overall Group

Total Signatures
Performance

Participation
Within the

Name of Students Student I.D. No. Assigned Task Marks

Output
Group
(30%)

(20%)
(50%)

Doc. Ref. No: PR101/FM04 Version No: 5.0 Page 1 of 7

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 Students’ Declaration (attach assessment work where required)
We hereby declare that this work is our own work. We did not copy the work from another student/group, and we referred
properly to all sources. We confirm also that we have a copy of this assignment for further reference.
Students’ Date:
Signatures:

General Instructions:
 This is a team assignment (20 marks). You are required to join with others in a team of three
students.
 Each team must submit a typed Assignment paper, in good form, to the LMS. Use this Team
Assignment Question Paper Template for your answers.
 Each team member is expected to equally contribute to the written assignment. You are required
to fill out the: (a) Marking Criteria on this template; and (b) the attached self-evaluation form
(submit the filled-out form to my email: s.sison@ku.edu.bh or via the chat box on MS TEAMS.).
 There is only ONE time submission/uploading on the LMS (repeat paper submission is NOT
allowed unless there is a typo error on the submitted paper). Therefore, make sure that your
answers are proofread and correct before uploading.
 Teams guilty of dishonest practices such as copying of answers shall be given a ZERO (0) mark.

Assignment Directions/Guidelines:
 Show all the needed data i.e., GIVEN to solve each problem. This carries a mark/grade.
 Show the complete steps for each problem. Write the formula first followed by the
steps/calculation.
 Final answers will NOT be credited if the steps are not shown.
 Each question is 2 marks (2 marks x 10 = 20 marks).

Assignment Tasks/Questions:
QUESTIONS/NUMERICAL PROBLEMS WORKSPACE AND FINAL ANSWER
PLEASE SHOW YOUR STEPS/SOLUTIONS FOR EACH
PROBLEM.
Q1: Yasmeen plans to borrow $1, 780. She Formula of simple interest is
has decided on a term of 280 days at 7%
simple interest. She has a choice of two P×R×T
I=
lenders. Once calculates interest using a 100
360-day year and the other uses a 365-day
where P=Principle, R=Rate of Interest, T=year
year. Find the amount of interest Yasmeen
280
will save by using the lender with the 365- Here, for the 1 st case, P=1780 , R=7 ,T =
360
day year.
250
1,780× 7 ×
So, 300
I= =96.91
100
280
For the 2 nd case, P=1780 , R=7 ,T =
365

Doc. Ref. No: PR101/FM04 Version No: 5.0 Page 2 of 7

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 230
1,780× 7 ×
So, 355
I= =95.58
100
So, Yasmeen will save $( 96.91−95.58)=$ 1.33 (Ans.)
11
2. Here, P=$ 5500 , R= , T =¿ unknown (Let the value
2
x
be years), I =$ 205
So, according to the question,

11
5,500 × ×x
2
=205
100
205 ×100
 or,  x=
11
5,500×
2
 or,  x=0.66 ≈ 0.7

So, the required time taken to earn the interest is 0.7

years ≈( 0.7 ×365) days ¿ 255.5 days ≈ 256 days. (Ans.)

Q2: Khalil lends $5,500 at a simple interest Given:

rate of 5 ½%. Find out how long it will take
for his investment to earn $205 in interest? Total P+I (A): $5705
Round to the nearest day.
Principal (P): 5500

Rate (R) : 5.5%

Solution:

t = 0.68 years
(about 0 years 8 months)

Equation:
t = (1/r)(A/P - 1)

Calculation:
First, converting R percent to r a decimal
r = R/100 = 5.5%/100 = 0.055 per year,
then, solving our equation

t = (1/0.055)((5705/5500) - 1) = 0.68
t = 0.68 years
Doc. Ref. No: PR101/FM04 Version No: 5.0 Page 3 of 7
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 Q3: Find the maturity value of a 6-month Given:
discount note if the discount is $250 and the
discount rate is 12.5%. Principal Amount ($)250
Return Rate (%)12.5
Time (years or compounding frequency)0.6

Solution:

Maturity Value : MV = P * ( 1 + r )n

= 250*(1+12.5)^0.6 = 1191.62682117

Q4: A $10,000 Treasury bill with 182 days to Given:

maturity sold at auction for $9,753.16. What
is the simple discount rate? Present Value (PV)
Future Value (FV)

10,000 $
9753.16 $

Term or number of periods

0.49863 yrs ∼

Solution:

The estimated annual discount rate is

−4.889%

Doc. Ref. No: PR101/FM04 Version No: 5.0 Page 4 of 7

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 Q5: Duaij borrowed $32,500 at 7.5% simple
interest for 180 days on January 7, 2022.
The bank later sold the promissory note at
an 8% discount on March 2, 2022. Find the
proceeds at the time of the sale.
Q6: Find the compound amount of $28,000
if invested at 12%, m=2 for 7 years and 9
months.
Doc. Ref. No: PR101/FM04
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Given:
Amount payable by Marsha to bank after 180 days =
amount borrowed + (amount borrowed * interest rate
* (180/360))
Amount payable by Marsha to bank after 180 days =
$32,500 + ($32,500 * 7.5% * (180/360)) =
$33,718.75.
On March 2, number of days left until loan is repaid =
126 days.
Solution:
Proceeds to bank = Amount payable by Marsha to
bank after 180 days / (1 + discount rate)126/360
Proceeds to bank = $33,718.75 / (1 + 8%)126/360
Proceeds to bank = $34,639.35
Given:
A = P + I where
P (principal) = $28,000.00
I (interest) = $43,915.79
Solution:
A=P¿ A=28,000.00 ¿A=28,000.00 ¿ A=$ 71,915.79
Version No: 5.0 Page 5 of 7
 Q7: Fahad deposits $1,200 in a certificate of Given:
deposit for 5 years in NBB. Find the
compound amount if the interest rate is 4% A=$ 1,465.67 A=P+¿ I where
compounded daily. P (principal) ¿ $ 1,200.00
I (interest) ¿ $ 265.67

Solution:

A=P¿ A=1,200.00¿ A=1,200.00¿ A=$ 1,465.67

Q8: The nominal rate is 1% per month and Given:

compounding occurs monthly, what is the
effective rate for 12 months? Effective rate = (1+0.1/1)^1 - 1

= 0.1

= 1%

Solution:

Q9: Compute the present value of an Given:

annuity due of $950 a month for 5 years.
Interest is paid at 15% compounded Then, solve the equation for P
monthly.
¿

Q10: Khalil plans to buy a used car. He can Given:

either finance the car through the dealer or
borrow the money from the bank. Either You will need to pay $ 398.70 every month for 4 years to
way, the amount borrowed will be payoff the debt.
amortized in equal payments over 4 years.

Doc. Ref. No: PR101/FM04 Version No: 5.0 Page 6 of 7

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 If the bank’s 12.5 annual interest rate for
used cars is compounded monthly, compute  
Khalil’s monthly payments for a bank loan of  
$15,000.  
 
 Monthly Payment  $ 398.70
Time Required to Clear  4.00  years 
Debt  $ 19,137.60
Total of 48 Payments  $ 4,137.60
Total Interest  $

Doc. Ref. No: PR101/FM04 Version No: 5.0 Page 7 of 7

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