Business Mathematics 1 (MGTC2208)
Higher Institute of Commerce and Management (HICM)
Semester: Second Semester
Level: 200
Year: 2014
UNIVERSITY OF BAMENDA
HIGHER INSTITUTE OF COMMERCE AND MANAGEMENT
Second Semester Examination
Departments: ALL Examiner: Prof N jimanted, G. Forgha
Course Code: MGSC 108 Starting Time: 11; 13-
Course Title: BUSINESS MATHEMATICS 1 Stopping Time; 14; 15
Credit value: 6 Venue; PBA, AH
Time Allowed: 3hrs Date; Thursday 17 July, 2014
Instructions: Answer all questions
(1)
Consider a perfect competitive firm with the following total cost: C=0.04q
3
-0.9q
2
+10q+5. If the price of its
output is 4 frs. With the aid of a suitable graph illustrating the functions above, determine the output that will
maximize its profit or losses and the maximum profit or losses. (20 marks)
(2)
Given the following market demand and supply functions:
Qd=4q+(l/2)p and
Qs=(15/2)p +10
(i) find the equilibrium price and quantity (5marks)
(ii) What will happen if the government fixed the price at 10frs or 5frs? (15marks)
(3)
A man invested 30.000FCFA in a fixed deposit with a bank which is expected to yield a future value of
60.000FCFA in five years from when the money was deposited. What interest rate will make this possible if
compounding is done?
a. (i) Quarterly (ii) continuously (iii) Annually
b. If the same amount expected to yield above is to made possible at 15 percent interest rate, find the number of
years if compounding is done.
(i) Quaterly (ii) continuously (iii) Annually (5 marks each)
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