Business Mathematics 1 (MGTC2208)
Higher Institute of Commerce and Management (HICM)
Semester: Second Semester
Level: 200
Year: 2017
HIGHER INSTITUTE OF COMMERCE AND MANAGEMENT
SECOND SEMESTER EXAMINATION
Departments: ALL
Examiner: Prof Njimanted, G. Forgha
Course Code: MGS108
Starting Time:
Course Title: BUSINESS MATHEMATICS 1
Stopping Time
Credit value: 6
Time Allowed: 3hrs
Instructions: Answer question Two (2) and any two others
Q1 a. Find the values of the following sums compounded as stated below
i. 500,000Frs compounded at 12 percent, 5 times a year, for 5 years (5mks)
ii. 120,000Frs compounded at 10 percent, 20 times a year, for 10 years (5mks)
b. An amount of 50,000ffs is invested in an account earning an interest of 4 percent per annum.
Find the total amount in the account
i. After 5 years if interest is compounded continuously (5mks)
ii. After 10 years if compounding is done continuously. (5mks)
Q2 Assuming a purely perfect competitive market with the following demand and supply functions
Qd = 200 - 5p; Qs = 4p – 7q; where Qd, Qs and P =/0.
a. Derive the equilibrium price and quantity (3mks)
b. What are the expectations if the government impose a maximum price of 25Fcfa (3mks)
c. What are the expectations if the government imposes a minimum price of 35Fcfa?
(3mks)
d. What is the effect on equilibrium price and quantities if the government imposes a
specific tax of 9Fcfa on the supplied of the good? ( 5mks)
e. How is the tax shared between the producer and the consumers of the products?
f. What amount of revenue could be generated by the government? ( 3mks)
g. If instead of a tax, the government guarantees the subsidies of 9Fcfa. How much in total
would be spent by the government? ( 3mks)
h. How would the subsidy be shared between the producers and the consumers of the
goods? (3mks)
Q3
a. A man borrows 60,000Fcfa from a corporation at 3 percent per annum interest He pays
20,000Fcfa at the end of each year. How much does he still owe after the second repayment?
(5mks)
b. A new investment project of 5 million Fcfa is put in hand. The marginal propensity
to consume is 4/5. That is, 4/5 of all extra income is spent and the balance being
save.
i. By how much is the total income received in the period increased? ( 5mks)
ii. By how much is the total income received in 15years increased? (5mks)
c. Find the limit of the function
=
as x approaches -2 ( 5mks)
Q4 A trader uses q units of goods price p=400-0.02q. The total cost of producing q units is C =
l00q + 1000. How many item should the trader sell in order to maximize profit, what price should be
changed-to maximize profit and what is the maximizing profit?
(20marks)
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