BUS 101 Arab Open University Introduction to Math for Business Questions

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Faculty of Business Studies
BUS101
Introduction to Math for Business
Final Examination – THE – Version A
2020-2021 /Spring Semester 2021/Second
Number of Exam Pages: 13
Time Allowed: 48 hours
(including this cover sheet(
Grades
Question
Number
Question 1
Question 2
Question 3
Question 4
Question 5
Total in Figures
Total in Letters
Total grade allocated
for this question
20
20
20
20
20
100
Student’s
earned grade
Marker Name and Signature
Instructions
1. This examination consists of Five questions. You are required to answer all questions.
2. Keep in mind that any form of cheating will not be tolerated and will subject you to AOU
cheating policy.
3. Show all calculations in your answers
BUS101 – Ver A
1/8
2020-2021/Spring
Take Home Exam for Final Assignment 2020-2021/Second
BUS101 – An Introduction to Business Math for Business
Cut-Off Date : 11th June 2021
Cut off Time : 2:05 PM
Total Marks
Duration
: 100
: 48 Hours
Contents:
Warnings and Declaration……………………………………….………………………………………………………………. 2
Question1 ……….…………………………………………………………………………………………….…………………….…. 3
Question 2 ……………………………………………………………………………………………………………….………………4
Question3 …………………………………………………………………………………………………………………………………5
Question 4 ………….…………………………………………………………………………………………………………….……….6
Question 5………………………………………………………………………………………………………………………………….7
Table Values……………………………………………………………………………………………………………………………8 – 13
Plagiarism Warning:
As per AOU rules and regulations, all students are required to submit their own THE-Final work and avoid
plagiarism. The AOU has implemented sophisticated techniques for plagiarism detection. You will be penalized for
any act of plagiarism as per the AOU’s rules and regulations.
Declaration of No Plagiarism by Student (to be signed and submitted by student with THE-Final work):
I hereby declare that this submitted THE-Final work is a result of my own efforts and I have not
plagiarized any other person’s work.
Name of Student: ————————————————————————Student ID No.—————————————————————————Signature: …………………………..…………………………………………………………………..
Section No. ———————————————————————————–Date:………………………………………………………………………………………………….…………
BUS101 – Ver A
2/8
2020-2021/Spring
Question 1 (20 points)
(A) An employee is working 6 days a week from Monday to Saturday. Assume the
overtime for the employee is one and a half after 40 hours. The following
table shows his working hours.
(6 points)
a) Complete the table below (Show your work)
M
T
10hr 10hr
W
Th
10hr 9hr
F
Sa
9hr 6 hr
Total
Hours
Regular
Hours
Overtime
Hours
Regular
Rate
Overtime
Rate
??
??
??
$ 7.50
??
b) Find the gross earning of the employee.
BUS101 – Ver A
3/8
2020-2021/Spring
(B) Hamad is a salesclerk who receives a salary of $ 750 per week plus a commission of 7% on
all sales exceeding $ 40,000. During a four-week period he sold products worth $ 55,000, what
were Hamad’s gross pay?
(7 points)
(C) Jasem makes handicraft items for an ornaments shop. He is paid on the following differential
pay scale:
Units produced
Amount per unit
1 – 60
$ 2.20
61 – 160
$ 3.15
161 – 200
$ 5.90
Over 200
$ 7.25
If he made 230 items in a week, how much is his gross pay?
(Round your answer to the nearest hundredth)
(7 points)
(6 + 7 + 7 = 20 marks)
BUS101 – Ver A
4/8
2020-2021/Spring
Question 2 (20 points)
(A) A businessperson took out a loan of $ 60,000 from the Bank at a simple interest rate of
5.25% on March 15, which is due on June 11.
(6 points)
a) Find the number of days of the loan from March 15 until June 11.
b) Using exact interest, find the interest amount (I=?)
(B) A dealer borrowed $ 5,000 on a 120-day 3% simple interest note. He paid $ 1,000 toward
the note on day 30. On day 80 he paid an additional $ 1,000. Assume 360-day year, what is his
ending balance due?
(7 points)
(C) A Supplier borrowed $ 14,000. The loan was for 15 months at a simple interest rate of 7%.
What is the interest and the maturity value?
(7 points)
BUS101 – Ver A
5/8
(6 + 7 + 7 = 20 marks)
2020-2021/Spring
Question 3 (20 points)
(A) A man deposits $ 14,850 into a bank, which pays 4% interest that is compounded
semiannually. What will he have in his account at the end of three years?
(7 points)
(B) The owner of a small factory thinks that he will need $ 35,900 for new equipment in 10
years. He decides that he will put aside the money now so that after 10 years the $ 35,900 will be
available. His bank offers him 8% interest compounded semiannually. What is the present value
of the $ 35,900?
(7 points)
(C) A person deposited $ 14,820 at a bank at an interest rate of 12% compounded quarterly.
Find the effective rate (APY). Write your answer in percentage rounded to the nearest
hundredth.
(6 points)
(7 + 7 + 6 = 20 marks)
BUS101 – Ver A
6/8
2020-2021/Spring
Question 4:(20 points)
(A) A company borrowed $ 18,000. The company plans to set up a sinking fund that will pay
back the loan at the end of 7 years. Assuming a rate of 10% compounded semiannually, find the
Sinking Fund of the ordinary annuity.
(6 points)
(B) An employee decided to invest $ 750 quarterly for 9 years in an ordinary annuity at 12%.
What is the total cash value of the annuity at end of year 9?
(7 points)
(C) What must YOU invest today to receive an annuity of $ 1,250 for 10 years compounded at
16% quarterly when all withdrawals will be made at the end of each period? (7 points)
(6 + 7 + 7 = 20 marks)
BUS101 – Ver A
7/8
2020-2021/Spring
Question 5:(20 points)
(A) A university graduate bought a new car. The cash price is $ 19,000; he made a $ 1,400 down
payment on it. The bank’s loan was for 20 months. Finance charges totaled $ 4,900. What was
the monthly payment?
(7 points)
(B) A steel factory bought a new equipment. The cash price of the equipment is $ 9,000, putting
down $ 3,800 and financing the remainder with 20 monthly payments of $ 288.50 each. Find the
APR by table lookup.
(7 points)
(C) A person bought an apartment. The cash price is $ 190,000; he made a $ 40,000 down
payment on it. The bank’s loan was for 120 months. Finance charges totaled $ 30,000. What was
the monthly payment?
(6 points)
(7 + 7 + 6 = 20 marks)
END OF EXAM QUESTIONS
BUS101 – Ver A
8/8
2020-2021/Spring
BUS101 – Ver A
9/8
2020-2021/Spring
BUS101 – Ver A
10/8
2020-2021/Spring
BUS101 – Ver A
11/8
2020-2021/Spring
BUS101 – Ver A
12/8
2020-2021/Spring
BUS101 – Ver A
13/8
2020-2021/Spring

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Explanation & Answer:
13 Pages

Tags:
hours worked

regular hours

overtime rate

regular rate

gross earning

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