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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

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2020-2021/Spring

BUS101 – Ver A

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2020-2021/Spring

BUS101 – Ver A

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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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