Assignment 01

Business Mathematics & Statistics ( MTH302)

Total Marks 20
Due Date: December 05, 2022
You can use Ms excel or MS Word to solve any question in the assignment but for submission
MS Word file is mandatory.

You also have to remember some basic points:

1. Show the complete process to solve the question; otherwise you will not get full marks.

2. If you write only the answer without any process, the question will not be taken as solved
properly.

3. If you solve the question on Ms Excel then paste the data on Ms Word after solving the
question (Do not take screen shot). You should also mention the formula separately which
you have used to solve the question. If you not mention the formula at least half the marks
will be deducted.

Question # 1
Suppose you are going to retire at the age of 65 today. For your retirement plan department is
offering following options:
I. Receive Rs. 3,500,000 today.
II. Receive 20 payments of Rs. 192,500 over the next 20 years (
).
III. Receive Rs. 800,000 today and 15 payments of Rs. 194,000 over the next 15 years (the
first payment will be at the end of this year).
You have to chose the best possible option. Whereas, your savings account pays an interest
rate of 5% annually.
a) Would you use the Future Value or Present Value to solve this question? Why?
b) Determine which option is best for you.
Question # 2
A beverage company delivers three type of drinks which are Milk(M), Carbonated
drinks(C ) and Juice (J) to four stores ( A, B, C, D) for a period of two month.
The number of pets of each type of beverage delivered to four stores in first month is
represented in Matrix K and second month is Matrix L

M C J M C J
A 8 4 3 A 1 3 1
B  2 2 2  B  2 7 2 
K L
C 1 3 1 C 8 3 4
   
D 3 1 3 D 9 2 6

i. Calculate the total number of pets delivered over the period of 2 months to each store.

Suppose, the price charged for pet of each type of drink is given by the matrix.

M  225
C 195 
J  212 

ii. Calculate the cost of each store ( A, B, C, D) on the beverages in two months.