fbsm may 15 revision pack 1 by akila gunarathna
TRANSCRIPT
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8/9/2019 FBSM May 15 Revision Pack 1 by Akila Gunarathna
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FBSM May 15
Revision Pack 1
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8/9/2019 FBSM May 15 Revision Pack 1 by Akila Gunarathna
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Question 1
• ABC’s profit for this year 8% higher than last year’s profit.
Next year’s profit forecast to $415,800 which would 10%
higher than this year’s profit.
• Which was the profit for last year.
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Answer
• Let x is the last year’s profit
• Then this year profit will be 1.08x
• So next year’s profit will be 1.08x*1.10
1.08x*1.10= 415800
1.188x = 415800
x = 350000
So last year’s profit was $350000
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Question 2
There is a linear relationship between Y and X. When Y=45,000
then X=15,000 and when Y=41,500 then X=25,500. The
equation that correctly relates Y and X is
• 3Y-X = 120,000
• 3Y+X = 150,000
• 3X+Y = 90,000
• 3X+Y =118,000
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Answer
Slope of the graph=
Difference in y values/ difference in x values
Slope=(45,000-41,500)/(15,000-25,500)
= -1/3 = b
Y = a +bxY= a - (1/3)X
Substitute one data pair x-=15000 y=45000
45,000= a – (1/3)x 15,000
a= 50,000Y= 50,000 –(1/3) x
After constructing the equation into form of Y=mX+c answer would be3Y+X=150,000.
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Question 3
An items sells for $7, including VAT @ 19.5%. What would the selling
price of the item be, correct to the nearest $0.01 if the VAT is
reduced to 17%.
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Answer
Actual %
Price without VAT ? x 100
VAT 19.5
Price with VAT 7 119.5
x/100 = 7/119.5
X = 5.8577
Price without VAT is 5.8577
Adding VAT 17%
Price with 17% VAT = 5.8577 x 117% = 6.85
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Question 4
Using the formula a=b+c(d-e). When b=5 c=0.7 d=15 and e=-5,
the value of a is
• 35
• 57
• 19
• 12
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Answer
a=5+0.7(15--5)
a=5+0.7(15+5)
a=5+14
a=19
Answer is 19
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Question 5
A camera which was priced at $178.29 has been increased to
$203.22. To two decimal places, the percentage increase is,
• 13.99
• 13.98
• 12.27
• 12.26
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Answer
Percentage increase
=((203.22-178.29)/178.29)*100%
=(24.93/178.29)*100%
=13.9828%
The percentage increases is 13.98%
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Question 6
• Refer below advertisement
• DD Bank Loan rates
• 6% for 3 years, 7.02% on the remaining balance there after
• Peter wishes to obtain a loan of 40,000 for 25 years. What will
be monthly repayment figure for first 3 years (to nearest $0.01
)
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Answer
• Examiner is asking the monthly repayment for first 3 years, yo
u need to consider this as an annuity (starting in y1) n=25 (nee
d to consider 25 years as the entire life of the loan is 25 years),
PV=40,000 and r=6%
• Using annuity formula• PV of annuity = Const c/f * Annuity Factor
• 40,000 = X * Cum DCF(6%,25 yrs)
• X = 40,000/12.783 = 3129.1559 per annum
• Monthly repayment = 3129.1559/12 = 260.76•
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Question 7
• Items are produced in two lines. Line A produces 35% of the
total items and line B the remainder. 10% of the items
produced on A are defective and B produce 8% defective
items.
• An item is selected random. If this selected item is defective,what is the probability that it was produced on line A? Provide
your answer to 4 d.p
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Answer
• Construct the probability table, assume total as 100
• This is conditional probability, condition is being a defective ite
m (we already know the item is defective)
• P(A/D) = Defective and A/ Defective = 3.5/8.7 = 0.4023
A B Total
Defective 35*10% = 3.5 65*8% = 5.2 3.5+5.2=8.7
Non defective 35-3.5 = 31.5 65-5.2=59.8 31.5+59.8=91.3
Total 35 100-35=65 100
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Question 8
• Six amounts, each of $200 are to be deposited into an account
at monthly intervals starting today. The compound rate of
interest is 1.5% per month. What is the total amount after six
months? Round your answer to 2 d.p
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Answer
• You need to draw the time line and then you can identify that
this is a geometric progression
M0 M1 M2 M3 M4 M5 M6
200 200 200 200 200 200
x 1.015^1 203.00
206.05
209.14
212.27
215.46
218.69
1,264.60
x1.015^2
x1.015^3
x1.015^4
x1.015^5
x1.015^6
Total in 6 years
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Question 9
• Unemployment last quarter was 400,500. The trend figure for
that period was 500,000 and the seasonal factor using the
additive model was -30,000.
• What is the seasonal adjusted unemployment figure for the la
st quarter?
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Answer
• Y= T + S
• T = Y – S
• Seasonally adjusted value = 400,500 - -(30,000) = 400,500+30,
000 = 430,500
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Question 10 and Solution
• The cost of a computer is $700 plus value added tax of 12 per
cent. Using the numbers given what excel formula is required
to calculate the total price rounded to 4 decimal places?
• Solution
• =ROUND(700+500*12%,2)
• You may have other acceptable answers