SQQM1073 BUSINESS MATHEMATICS A231

INDIVIDUAL ASSIGNMENT

NAME :
MATRIC NO :

FOR LECTURERS USE ONLY MARKS STUDENT’S MARKS

CLO1 (30%) QUESTION 1 4

QUESTION 2 8

QUESTION 3 8

QUESTION 4 10

CLO2 (20%) QUESTION 5 6

QUESTION 6 6

QUESTION 7 8

TOTAL MARKS

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SQQM1073 BUSINESS MATHEMATICS A231

ANSWER ALL THE QUESTIONS.

SUBMIT THE SOFTCOPY IN PDF FORMAT IN UUM ONLINE LEARNING NOT LATER
THAN 30 NOV 2023 (THURSDAY) AT 11.59 PM.
USE PAGE 1 AS THE COVER PAGE.

QUESTION 1 (4 MARKS)
If RM1,200 is the present value of RM1,260 due at the end of 9 months, determine

a) the annual simple interest rate (2 marks)

b) the annual simple discount rate (2 marks)

QUESTION 2 (8 MARKS)
a) Let us suppose, you can buy a lot for RM84,000 cash or payments of RM50,000 now,
RM20,000 in 1 year and RM20,000 in 2 years. If money is worth j12 = 9%, which
option is better for you?

QUESTION 3 (8 MARKS)
a) Mrs Z wants to have RM5,000 in 29 months. How much does she have to invest
today at interest j2 = 5%, using the exact method? (3 marks)

b) Calculate the accumulated value of RM1,500 for 16 months at interest j4 = 7%,

using the approximate method, and compare the results with (a). (5 marks)

QUESTION 4 ( 10 MARKS)
Mr Y has two options available for repaying a loan:
• he can pay RM200 at the end of 5 months and RM300 at the end of 10 months,
or
• he can pay RMX at the end of 3 months and RM2X at the end of 6 months.

If the options are equivalent and money is worth 12% per annum simple interest, find
X, using as the focal date

a) the end of 6 months (5 marks)

b) the end of 3 months. (5 marks)

(Note: Draw the timeline for each option)

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SQQM1073 BUSINESS MATHEMATICS A231

QUESTION 5 ( 6 MARKS)

Mr Z demands in his will that RM50,000 from his estate be placed in a fund from which
his three daughters are each to receive the same amount when aged 21. When Mr. Z
dies, the girls are aged 19, 15, and 13. How much will each receive, if the fund earns
interest compounded at 12% annually?

QUESTION 6 (6 MARKS)

Miss Y owes RM8,000 due at the end of 3 years with compound interest at j2 = 8%. The
lender agrees to allow her to pay back the loan early with a payment of RM3,000 at
the end of 9 months and RMX at the end of 27 months. If the lender can reinvest any
payments at j4 = 5%, what is X?

QUESTION 7 (8 MARKS)

Good Fortune Industries decided to pay back a RM20,000 loan by making six semi-
annual payments at 12% compounded semi-annually.
a) Find the semi-annual payment.
b) Find the interest and principal portions of the first payment.
c) What is the outstanding balance after the first payment?
d) Find the interest and principal portions of the second payment.
e) What is the outstanding balance after the second payment?

~END OF QUESTIONS~