BUQU 1130 - Test 1 Fall 2017
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School
Kwantlen Polytechnic University**We aren't endorsed by this school
Course
BUQU 1130
Subject
Mathematics
Date
Jan 3, 2025
Pages
7
Uploaded by AgentIbex4804
BUQU 1130 – Business Mathematics Test 1 Name: Date: October 17, 2017 Student Number: Section: S17 Grade: /60 Time: 100 minutes Instructor: Shora Ebrahimi Instructions: •Ensure student name and number appear on the top of this question sheet. •For each question, you must explain the steps to receive marks. If you decide to use the calculator, write down the inputs. •All your answers must be shown in the space provided along the right side. Show your work in the space below the question. •All answers must: oShow appropriate units oUse correct rounding, with only final answers rounded oShow the appropriate number of decimal places (percentages should be shown with at least 2 decimal places as in 12.25%, money as dollars and cents as in $6.94) •Make sure your cellphones are OFF. •KPU Code of honesty applies to this exam.
1. Sana Ltd. received an invoice dated September 20 from Walls Co of England with terms 4/20, n/45 for:20 doors at $250.00 each; 25 windows at $150.50 each; 30 glass panes at $80.50 each. All items are subject to trade discounts of 25%, 10%, 5%.a) What is the single equivalent rate of discount? 1a ______________b) How much is the net amount due? 1b _____________ c) What is the amount due if the invoice is paid in full on October 8? 1c ______________ d) If only a partial payment is made on the last day of the discount period, what amount is due to reduce the outstanding balance to $15000.00? 1d _____________
2. Mia Doll Company sells dolls for $62 each. Manufacturing cost is $22.70 per doll; marketing costs are $7.75 per doll; and payments to ETSY (a website where dolls are sold) are 5% of the selling price. The rental cost of the doll shop is 20000 per year. Capacity is 20000 dolls. a) What is the breakeven point in units? 2a ______________b) What is the breakeven point in dollars?2b ______________ c) Determine the break-even point in units if fixed costs are increased by $4000 while manufacturing cost is reduced $1.70 per doll.2c ______________ d) Disregard (c). Determine the break-even point in units if the selling price is increased by 10% while fixed costs are increased by $2900.2d ______________
3. Answer the following questions: a) What sum of money will accumulate to $673.98 in three years at 12.4% compounded monthly?3a _____________ b) On October 17, 2016, Sally Oh opened a low interest line of credit at his bank, with interest at 4.5% p.a. He used this line of credit immediately to pay $4500 of the tuition fee. On what date did Sally honor the line of credit if he ended up paying $215.30 in interest? (Round up the number of days if you don’t get a whole number.)3b_____________
4. Thad is planning to buy a lawnmower next spring at an expected price of $579. In the current fall flyer from Evergreen Lawn and Garden, the model he wants is advertised at $500 in a Fall Clearance Special.Right now, Thad has $500. a) How much will he have if he invests his money ($500) today, October 17, at 4.21% and wait until April 1 in the spring? 4a ______________b) Based on your answer from part (a), should he buy now on October 17 at the fall sale price or wait until April 1 in the spring?4b _____________ c) At what interest rate would he be indifferent between the two prices?4c ____________
5.Answer the following questions regarding an 8-month promissory note dated April 1, 2014 that is made at 4.15% for $7690. a) How much is the note worth at maturity? Ignore any grace periods.5a ______________ b) How much is the note traded for on October 15, 2014, if money is worth 7.32%? 5b ______________
6.Three debts, the first for $3440 due four months ago, the second for $2630 due in 5 months, and the third for $3280 due in 7 months, are to be paid by a single payment today. How much is the single payment if money is worth 7% p.a. and the agreed focal date is today? 6 _________________ Good Luck!