Series 4 Examination 2010

BUSINESS CALCULATIONS
Level 2 Friday 12 November Subject Code: 2003 Time allowed: 2 hours 30 minutes

INSTRUCTIONS FOR CANDIDATES

Answer all 8 questions. Write your answers in blue or black ink/ballpoint. You may use pencil only for graphs, charts, diagrams, etc. All answers must be correctly numbered but need not be in numerical order. You must show all calculations, where applicable, on the answer paper provided. You can use mathematical and statistical tables. Your work should be accurate and neat. You may use a calculator provided the calculator gives no printout, has no word display facilities, is silent and cordless. The provision of batteries and their condition is your responsibility.

2003/4/10

Page 1 of 9

ASE 2003 4 10 1

QUESTION 1 Adeline lends 95,000 for 5 years at 3% per annum compound interest. Calculate: (a) (b) (c) (d) (e) The amount owing after 5 years. (3 marks) The total interest on the loan. (2 marks) The average interest per annum on the loan. (2 marks) The interest earned in the final year. (3 marks) The percentage rate of simple interest that would earn the same amount in the final year. Give your answer correct to 3 figure accuracy. (2 marks)

Benjamin borrowed the 95,000 to buy an apartment in Gdansk, priced in euros, at a time when the conversion rate was 1.1 to the 1. (f) Calculate the value of 95,000 in euros at that time. (2 marks) (Total 14 marks)

2003/4/10

Page 2 of 9

QUESTION 2 Evangeline buys 25,000 shares in Company A for a total cost of $46,500, and 20,000 shares in Company B at $1.95 each. Calculate: (a) (b) The cost of one share in Company A at that time. (2 marks) The average cost per share of the 45,000 shares. (4 marks) Four years later, Evangeline sells the 25,000 shares in Company A for $57,000. Calculate: (c) (d) (e) (f) The profit (capital gain) made on purchase and sale of shares in Company A. (2 marks) The profit as a percentage of the original investment. (2 marks) The profit percent per annum. (2 marks) The profit (capital gain) made on purchase and sale of shares in Company A in pounds sterling at an exchange rate of $1.60 = 1. (2 marks) (Total 14 marks)

2003/4/10

Page 3 of 9

QUESTION 3 Christos earned commission on a sale of 13,000 as follows: 1% of the first 5,000 0.5% of the next 5,000 x% of the remainder The total commission earned by Christos on the sale was 84. Calculate: (a) (b) The value of x. (5 marks) The average rate of commission on the sale as a percentage. (2 marks) Christos went on holiday to Africa and converted the 84 into Zimbabwe dollars at an exchange rate of 0.00215 to the Zimbabwe dollar. (c) Calculate the value of the 84 in Zimbabwe dollars. (2 marks) On returning from Africa, Christos had 19 Zimbabwe dollars left. (d) Using the same exchange rate, calculate the value of this in pounds sterling to the nearest penny. (2 marks)

Christos later found that he owed tax on the 84 at a rate of 21%. (e) Calculate the amount of tax owed. (2 marks) (Total 13 marks)

2003/4/10

Page 4 of 9

QUESTION 4 Joshua orders computers and spares from Company C for University U. (a) Copy and complete the following invoice. (6 marks) Company C Supplied to: Computers: Type A Type B 40 at 750 at 535 13,375 _____ Total cost of order Discount 10% Invoice total Joshua later receives a statement from Company C, as follows: Company C To: University U Attention J Mokomo Invoice number 4532 4611 4727 Total Agreed discount 7% Total now due Calculate: (b) (c) (d) (e) The total of the three invoices; (1 mark) The amount of the agreed discount; (2 marks) The total now due; (1 mark) The average cost per computer of 65 computers with a total cost of 43,375. (2 marks) (Total 12 marks) Amount () 890 40,500 22,250 Statement of Account 45,000 ___.... Invoice 4611

Spares: One pack

2003/4/10

Page 5 of 9

QUESTION 5 Vitantonio insures his car for a net annual premium of 1,080, which includes a no claims discount of 60%. (a) Calculate the gross annual premium. (2 marks) He pays the net annual premium in equal monthly instalments, and this increases the amount due by a surcharge of 9% of the net annual premium. The surcharge is included in the amount to be paid by monthly instalments. (b) Calculate the amount of each monthly instalment. (4 marks) He also has a van that he insures with a continental insurer for 1,760 at an exchange rate of 1 = 0.85. (c) Calculate the cost of the van insurance in pounds sterling. (2 marks) Vitantonio has an accident in his car, and the cost of the repair is 3,500. His car is insured for only 90% of its value. (d) Calculate the amount of the repair cost that Vitantonio will have to pay himself. (2 marks) Due to the accident he loses his no claims bonus. (e) Calculate the new annual cost of insurance based on the full value of the car. Assume the car has the same value after the repair as before the accident. (3 Marks) (Total 13 marks)

2003/4/10

Page 6 of 9

QUESTION 6 Julius borrows 1,335 on a hire purchase contract to pay for a new item priced at 1,500. Calculate: (a) (b) the amount of the deposit that Julius pays, (2 marks) the deposit as a percentage of the price of the item. (2 marks) There is a total interest charge of 12% of the amount borrowed. Calculate: (c) (d) (e) the amount of the charge; (2 marks) the total amount paid by Julius for the item. (2 marks) the amount of each monthly installment, if Julius repays the amount borrowed and the hire purchase charge together in 24 equal monthly installments. (3 marks) (Total 11 marks)

2003/4/10

Page 7 of 9

QUESTION 7 Company D has 5 employees. Their annual salaries are as follows: Danielle Edward Fatimah Janine Latisha Calculate: (a) (b) the total annual salary bill for Company D. (2 marks) the average salary per employee. (2 marks) Danielle and Fatimah compare their salaries with jobs abroad. (c) (d) Convert 17,000 to dollars at an exchange rate of $1 = 0.68. (2 marks) Calculate an exchange rate at which 24,500 would be equivalent to $46,550. (2 marks) Latisha calculates her salary as an amount per week. Giving your answers to the nearest penny (0.01), answer the following: (e) (f) Taking 1 year as equal to 52 weeks, calculate Latishas salary per week; (2 marks) Taking 1 year as equal to 365 days, calculate Latishas salary per week. (2 marks) (Total 12 marks) 17,000 17,500 24,500 22,800 19,900

2003/4/10

Page 8 of 9

QUESTION 8 Alex, Elicia and Ling form a partnership. Alex invests 20,000; Elicia invests 30,000; and Ling invests 40,000. In the first year they make a profit of 12,150 and share it in proportion to their investments, withdrawing it from the business. (a) Calculate the amount of profit that each partner receives? (5 marks) In the second year, Ling withdraws 15,000 of her capital. (b) Calculate the new ratio of investments, Alex : Elicia : Ling. Give your answer in its simplest form. (2 marks) In the third year, they make a profit of 29,250 and share it in proportion to their current investments. (c) Calculate how much Ling receives? (2 marks) In the fourth year, Elicias share of the profits is 10,800. (d) Calculate Alexs share of the profits. (2 marks) (Total 11 marks)

2003/4/10

Page 9 of 9

Education Development International plc 2010