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Bcom 171: Business Mathematics Ii Question Paper
Bcom 171: Business Mathematics Ii
Course:Bachelor Of Commerce
Institution: Chuka University question papers
Exam Year:2013
CHUKA
UNIVERSITY
UNIVERSITY EXAMINATIONS
EMBU CAMPUS
FIRSTYEAR EXAMINATIONS FOR THE AWARD OF DEGREE OF BACHELOR OF COMMERCE
BCOM 171: BUSINESS MATHEMATICS II
STREAMS: BCOM YIS2 TIME: 2 HOURS
DAY/DATE: MONDAY 22/4/2013 2.30 PM – 4.30 PM
INSTRUCTIONS:
ANSWER QUESTION ONE AND ANY OTHER TWO QUESTIONS.
1. (a) Using suitable examples, discuss any five classes of annuities. [5 Marks]
(b) Discuss any five factors that influence capital investment decisions in Kenya. [5 Marks]
(c) Calculate the inverse of the following matrix. (¦(2&-3@1&2)) [5 Marks]
(d) By using suitable examples, distinguish between an open and closed model
of the input-output analysis. [5 Marks]
(e) Discuss the technology matrix of the input – output analysis. [5 Marks]
(f) Decision making is a process that is done in a series of orderly stages.
Discuss the stages. [5 Marks]
2. (a) Muteru has received a five year employment offer from two companies with the
following remuneration packages:
Company I: An initial annual salary of Ksh 400,000 with an annual increment
of Ksh 2,000 every year.
Company II: an initial annual salary of 380,000 with an increment of 10% every
year.
Required:
Advice Muteru on the better employment offer. [11 Marks]
(b) Given that A=(¦(1&2&3@2&3&4@-1&1&2)) B=(¦(0&2&-1@1&3&4@0&-2&-3))
Show that AB?BA [9 Marks]
3. (a) Omondi plans to buy a car in four years time. The car is expected to cost Ksh
400,000. He deposits Ksh 100,000 into a bank account that pays compound interest at the rate of 12.5% at the beginning of the first year, Ksh 80,000 at the beginning of the second year and Ksh 50,000 of the beginning of the third year. Calculate how much money Omondi requires at the end of the forth year to enable him buy the car. [7 Marks]
(b) A man deposited Ksh 15,000 into a bank account every year for a period of
twelve years. If the bank pays compound interest at the rate of 10.75%, calculate the amount of funds in the bank account at the end of the period. [7 Marks]
(c) Joyce invested some money in a bank that paid 12% p.a simple interest. After 5
years the total savings, were Ksh. 560,000. Calculate the sum of money initially invested. [6 Marks]
4. (a) The initial investment and net cash flows of two projects A and B are as follows:
Proposal Initial investment Annual Net Cash flows in years
1 2 3 4
A 10,000 8,000 3,000 7,000 6,000
B 10,000 6,000 6,000 3,000 3,000
Required:
Using the Net Present Value (NPV) method, advice on the project to be preferred
if the discount factor is 15%. [10 Marks]
(b) A box contains 3 Red, 4White and 5 Blue balls. What is the probability of taking:
(i) A Red ball
(ii) A Blue ball
(iii) A Red or Blue ball
(iv) A red or White or Blue ball
(v) A Green ball [5 Marks]
(c) Using suitable examples, distinguish between dependent and independent events. [5 Marks]
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