FBSM May 15 Revision Pack 1 by Akila Gunarathna

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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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%


12/20

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?


19/20

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

FBSM May 15 Revision Pack 1 by Akila Gunarathna

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