BCPC208: QUANTITATIVE METHODS I.A.

EXAMINATIONS 2021/2022 ACADEMIC YEAR

ANSWER ALL QUESTIONS

TIME: 1 HOUR

Question 1
(a) (i) The salary for a job starts at a Ghana cedis per annum increased by d Ghana cedis at the
end of each year. The total salary earned in n years is given by the expression

S = n/2 [2a + (n-1)d]

Make d the subject of this formula.

(ii) At a certain time, each year, the scaling down of weekly production of sun hats starts.
Calculate the weekly reduction if the production should be scaled down from 190,000 to zero in
12 weeks.

(iii) How much should you pay for an annuity of quarterly payments of GH¢1500 for five years,
assuming interest rates of 5% per annum?

Question 2:
The demand and supply functions of a good are given by

4P = -Qd+102

5P = Qs+6

where P, Qd, and Q, denote the price, quantity demanded, and quantity supplied, respectively.

(i) Determine the equilibrium price and quantity.

(ii) Determine the effect on the market equilibrium if the government decides to impose a fixed
tax of GH¢9 on each good. Who pays the tax?

(c) A storekeeper has 60m³ available for storage of two brands of mineral, drink X and Y. The
volume of a crate of X is 3m³ and that of a crate of Y is 2m³. A crate of X costs GH¢15, a crate of Y
costs GH¢30, and he makes a profit of GH¢5 per crate of either brand. He has GH¢450 to spend
on the order of purchases of x crates of X and y crates of Y.

(i) Write down all the inequalities involving x and y.

(ii) Illustrate graphically the set P satisfying the inequalities.

(iii) Find the maximum profit.

.
Question 3
At the beginning of 2020, January 1, three sisters Ama, Efua and Baaba were given an amount of
10,000 to be shared and invested in an interest-bearing account. Ama was given an amount x,
with which she was able to negotiate an interest of 5% per annum. Efua was, also, given an
amount y, which he invested in an account that pays an interest of 10% per annum. Baaba, on the
other hand, was given an amount z, which he invested in an account that earned her an interest
of 8% per annum on his investment. At the end of the year, the three sisters were able to earn a
total interest of $800. In addition, supposed the amount of money given to Baaba is ¢400 less
than the amount of money given to Ama and Efua combined.

(a) Write down the three linear equations

(b) Represent the system of equations in a matrix form AX = B

(c) Find the determinant of the matrix A

(e) Hence, find the amount of money given to each of the 3 siblings

Solutions:
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