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Bmath 004 Bridging Question Paper
Bmath 004 Bridging
Course:Certificate In Bridging Mathematics
Institution: Alphax College question papers
Exam Year:2010
UNIVERSITY EXAMINATIONS 2009/2010 ACADEMIC YEAR
FOR THE CERTIFICATE OF BRIDGING MATHEMATICS
COURSE CODE: BMATH 004
COURSE TITLE: BUSINESS MATHEMATICS
STREAM: BRIDGING MATHEMATICS
DAY: WEDNESDAY
TIME: 2.00 – 4.00 P.M.
DATE: 28/07/2010
INSTRUCTIONS:
• Answer Question ONE and Any Other TWO Questions
SECTION A (30 MARKS)
Answer ALL Questions in this section
1. Differentiate between the following
i. Appreciation and depreciation
ii. Exact and ordinary simple interest
iii. Simple and compound interest (3Maks)
2. A shopkeeper sells a shirt for Kshs. 350 thereby making a profit of 40%.Calculate the
buying price of the shirt (3Maks)
3. Find the exact simple interest earned on sh.75.683 at 8.25% from January 17Th to
July 26Th 2004 (3Maks)
4. John earns a monthly salary of sh.27,000. His income tax is calculated at 25% while
the NHIF deduction was sh.230 and pension was 2.5%.Calculatre his net monthly pay
. (3Maks)
5. At what rate of simple interest will Kshs 10,000 amount to sh.11,000 in
5 years (3Maks)
6. A sales agent sold an item for 39,000 He gets a commission of 5.5% on the first
13,000 and 2.25% on the remainder .Calculate the earnings of the agent. (3Maks)
7. A man invests Kshs. 10,000 in an account which pays 16% interest compounded
quarterly .Find the amount in the account after 10 years (3Maks)
8. In how many years will a sum of 10,000 triple itself at 12% per annum compound
interest? (3Maks)
9. The value of a pot in a certain municipality is estimated to appreciate at the rate of
8% per anum of its value at the beginning of each year .The plot was valued at Kshs.
800,000 five years ago .Calculate the value of each year (3Maks)
10. A man borrowed Kshs. 100,000 at 16% per anum compound interest and has to repay
by equal monthly installment within two years .Calculate the amount of interest paid
(3Maks)
SECTION B (40 MARKS)
Answer TWO Questions in this section
11. a) The cash price of a TV is sh.20,000 .The set may be bought on hire purchase
scheme by paying a deposit of sh.5000 and the balance paid in 24 equal monthly
installments with a 20% interest per anum .Calculate the difference between the
cash price and the hire purchase price.
b) St.Joseph’s company had a merchandise inventory of sh.486,390 on first April
The company’s income statement for April showed Kshs 390,486 as the cost of
goods sold and sh.650,430 for the goods available for sale .Find.
i. The merchandise inventory on 30th April.
ii. The purchases during the month
12) Mr. Otieno who is planning to travel abroad, has some amount of money in
Kenyan shillings .He converted ½ of his money into dollars and quarter of
theRemainder into Sterling pounds and was left with KSH. 78,750 .If the conversion
rates are $1=80 KSH and £1=120KSH ,find the amount of dollars and sterling
pounds Mr.Otieno had.
b) Find the total amount of interest paid on a mortgage taken on a house costing 186,000
with a down payment of 15% and a repayment period of 20 years at 25.5% interest
(20 Marks)
13) A and B started a partnership business on 1st January 2000 with an investment of
Sh.30,000 and Sh. 20,000 respectively .They agreed to share earnings equally after
allowing 5% interest on the investment on 1St Jul, The same year C was admitted as a
partner and contributed Sh. 10,00 as his investment .The three partners A,B and C
Decided to share the profits in the ratio 3:2:1 respectively and no interest was allowed
on the investment. The profits for the year ended 31st December 2000 was Sh.54,846
Assuming that the profits accrued evenly during the year, calculate the share of each
partner (20 Marks)
14) Mr. Munene earns a salary of Sh. 72,000 per month and gets house allowance of
Kshs. 15,000 per month ,he is also entitled to a personal relief of 1056.His
contribution to NHIF is Sh.320and his pension contribution is 2.5% .How much
income tax should he pay per month P.A.Y.E is calculated according to the following
table
Income rate Tax
Up to K£ 484 Sh 2 Per pound
K£ 485-940 Sh 3 Per pound
K£ 941- 1396 Sh 4 Per pound
K£ 1397-1852 Sh 5 Per pound
Over K£ 1852 Sh 6 Per pound
(20 Marks)
15) a) The Hite purchase price of an item is Ksh.13,700 .A customer who buys the item
for cash gets a 15% discount on the hire purchase price .Lane bought the item on
hire purchase and paid Kshs. 2,825 as down payment .She paid the balance in 15
equal monthly installments
i. How much money did she pay per month?
ii. How much money could she have save if she had bought the item for cash?
b) Kimathi invests some money which earns compound interest every year .His
investment amounts to Sh. 6,050 at the end of the second year and Sh. 7,320 at
the end of the fourth year. Find the interest of the investment
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