FACULTY OF BUSINESS & MANAGEMENT (FBM)

DBM1102 BUSINESS MATHEMATICS

ACADEMIC SESSION

SEMESTER: JULY 2019

LECTURER’S NAME: Azzuana Fakhrinie Binti Ramli

SUBMISSION DATE: 23 / 09 / 2019

PREPARED BY

NAME: Wong Sze Yin

MATRIC ID NO.: QIUP - 201907 - 003373

FACULTY OF BUSINESS & MANAGEMENT (FBM)

DBM1102 BUSINESS MATHEMATICS

ACADEMIC SESSION

SEMESTER: JULY 2019

LECTURER’S NAME: Azzuana Fakhrinie Binti Ramli

SUBMISSION DATE: 23 / 09 / 2019

PREPARED BY

NAME: Wong Sze Yen

MATRIC ID NO.: QIUP – 201907 - 003371

ASSIGNMENT QUESTIONS
1. Khairul needs to do 13 payments for an investment. The fourth payment divided by the
second payment equals to 4. If the last payment is RM8,192, and the common ratio is
positive, compute the:

a) common ratio
T2 ¿ ar 1 -----1
T4 ¿ a r 1 -----2
3
ar 4
2 ÷1= 1
=
ar 1
2
a r =¿ 4
r =2
[3m]
b) first payment
When r =2, then sub 2
3
a r =4
3
a ( 2 ) =4
8a ¿ 4
1
a¿
2
[3m]
a) sum of all the payment.
n−1
Tn=a r
1 n
8192= (2 )
2
n
16384 ¿ 2 −1
14 n−1
2 =2
n−1=14
n=15

n
a(r −1)
S15=
(r−1)
1 15
( 2 −1 )
2
¿
2−1
= RM 16383.50
[2m]
2. Ahmad and his wife have four children. The eldest is studying in local university doing
their bachelor degree while the rest are still schooling. Their income and expenses are as
follows:

Income and Expenses Ahmad (RM) Wife (RM)

Income 60,000 36,000

EPF 6,600 3,960

LIP 1,800 1,200

Cash contribution 300 200

Medical expenses for 3,500 1,500

parents

Book and Journal 1,000 -

Zakat 500 300

Calculate their tax payable if they choose:

a) joint assessment [14m]
b) separate assessment
[26m]
a)

Income RM96000
Deductions
Personal RM9000
wife RM3000
Children RM9000
EPF&LIP RM6000
Cash contribution RM500
Parent Medical Expenses RM3500
Book & Journal RM1000 (RM32000)
RM64000

Tax assessment Rate tax

On the First 50000 RM2850
On the Next 14000 19% RM2660
Tax amount RM5510
RM4710
Zakat RM800-
RM3910
bi)

Income RM60000

Deduction

Personal RM 9000

Children RM 9000

EPF&LIP RM 6000

Cash contribution RM 300

Parents Medical Expenses RM 3300

Book Journal RM 1000 (RM 28800)

Chargeable income RM 31200

Tax assessment Rate Tax

On the first 20000 - RM 300

On the next 11200 6% RM 672

Tax amount RM 972

Tax rebate - RM 400

RM 572

Zakat RM -500

RM 72
bii)

Income RM 36000

Deduction

Personal RM 9000

EPF & LIP RM 5160

Cash contribution RM 200

Parents Medical Expenses RM 1500 (RM 15860)

Chargeable income RM 20140

Tax assessment Rate Tax

On the first 20000 RM 300

On the next 140 6% RM 8.40

Tax amount RM 308.40

Tax rebate RM400-

RM-91.6

Zakat RM300-

RM-391.6
3. Jason would like to receive an annuity of RM5,000 semiannually for 10 years after he
retires. He will retire in 18 years. Money is worth 6%, compounded semiannually.

a) Calculate the amount of money Jason would have when he retires in order to finance
this annuity.
Pmt = 5000 k=2 R = 6% T = 10

R
I= A = kT
k
0.06
= = 2(10)
2
= 0.03 =20

( 1+ ⅈ )n−1
FV = Pmt ×
ⅈ

= 5000 × ( ( 1+ 0.03 )20−1

0.03 )
¿ RM 134351.87

[5m]
b) Determine the single deposit made now that would provide the funds for the annuity.
FV
Pv=
(1+i )n

134351.87
¿
( 1+0.03 )20

¿ RM 74387.37
[5m]
c) Compute the amount that Jason will actually receive in payments from the annuity.
n
M =P ( 1+i )
20
¿ 5000 ( 1+0.03 )

=RM9030.56
 [2m]

d) Compute the interest that the single deposit earns before the annuity ends.
I = A−( n × pmt )
=134351.87–(20×RM5000)
=RM34351.87

[2m]
4. Create an invoice for 6 items which are related to the company you have suggested.
Compute the total invoice amount that you have created if the trade discount is 5/10, cash
discount is 20/15, 10/25, n/60 and the invoice was paid on the 20 th day of the invoice date.
Include the shipping and insurance amount of RM 50 into the invoice. More marks will be
given for creativity of the invoice.

[18m]
Invoice

Invoice No:75-396 Date: 5 Sept 2019

Terms: 20/15, 10/25, n/60

Quantity Description Unit List Price Total

7 High-waisted jeans RM23 each RM161.00

9 Mini black short skirt RM10 each RM90.00

12 Women & men’s T-shirt RM8 each RM96.00

2 Men’s sweater RM64 each RM128.00

5 Women’s sportwear hoodie RM26 each RM130.00

1 Windbreaker RM154 each RM154.00

Total list price RM759.00

Trade Discount5 ⁄10 RM110.05

Total after trade discount RM648.95

Cash discount RM64.90

Net cost RM584.05

Shipping and insurance RM50.00

Total invoice amount RM634.05

4. Create an invoice for 6 items which are related to the company you have suggested.
Compute the total invoice amount that you have created if the trade discount is 5/10, cash
discount is 20/15, 10/25, n/60 and the invoice was paid on the 20 th day of the invoice date.
Include the shipping and insurance amount of RM 50 into the invoice. More marks will be
given for creativity of the invoice.

[18m]
Invoice

Invoice No:34-789 Date: 1 July 2019

20 10 n
Terms: , ,
15 25 60

Quantity Description Unit List Price Total

15 Pineapple RM8 each RM120.00

18 Watermelon RM10 each RM180.00

10 Apple RM5 each RM50.00

20 Lime RM2 each RM40.00

17 Lemon RM2.20 each RM37.40

13 Orange RM3.30 each RM44.20

Total list price RM471.60

Trade Discount5/10 RM68.38

Total after trade discount RM403.22

Cash discount RM40.32

Net cost RM362.90

Shipping and insurance RM50.00

Total invoice amount RM412.90

5. Radzi wants to sell his car, which was purchased for RM100,000, after using it for four
years. The residual value after eight years is estimated to be RM20,000. Two second-hand
dealers are offering to sell her car based on the book value. Agency Cool Car is using the
declining method while Agency Fresh Car is using the sum of year digits method to calculate
the depreciation.

a) Construct the depreciation schedule for the first 5 years for Agency Cool Air using the
declining balance method.

[7m]
Cost =100000

Salvage Value =20000

Useful life=8

√ √
Annual dep., r=1-
n s
c
=1-
8 20000

100000

=0.1822

Year Annual.Dep Acc. Dep Book value

0 - - 100000

1 0.1822×100000= RM 18220 RM 81780

RM 18220

2 0.1822×81780= 18220+14900.32= RM 66879.68

RM 14900.32 RM 33120.32

3 0.1822×66879.68= 33120.32+12185.48= RM 54694.20

RM 12185.48 RM 45305.80

4 0.1822×54694.20= 45305.80+9965.28= RM 44728.92

RM 9965.28 RM 55271.08

5 0.1822×44728.92= 55271.08+8149.61= RM 36579.31

RM 8149.61 RM 63420.69
b) Construct the depreciation schedule for the first 5 years for Agency Fresh Car using sum-
of-year digits method.

[10m]
Cost =100000

Salvage value=20000

Total Depreciation=80000

Useful Life=8

n(n+1)
Sum of Digits=
2

8(8+1)
¿
2

=36

Year Fraction Annual Dep. Acc Dep Book value

0 - - - RM 100000

1 8 8 RM 17777.78 RM 82222.22
×80000= RM 17777.78
36 36

2 7 7 RM 33333.34 RM 66666.66
×80000= RM 15555.56
36 36

3 6 6 RM 46666.67 RM 53333.33
×80000= RM 13333.33
36 36

4 5 5 RM 57777.78 RM 42222.22
×80000= RM 11111.11
36 36

5 4 4 RM 66666.68 RM 33333.32
×80000= RM 8888.90
36 36

c) Identify which car dealer is offering a better deal to Radzi. State your reason.
Agency Fresh Car dealer is offering a better deal to Radzi.
 [3m
]
b) Construct the depreciation schedule for the first 5 years for Agency Fresh Car using sum-
of-year digits method.

[10m]
Cost =100000

Salvage value=20000

Total Depreciation=80000

Useful Life=8

n(n+1)
Sum of Digits=
2

8(8+1)
¿
2

=36

Year Fraction Annual Dep. Acc Dep Book value

0 - - - RM 100000

1 8 8 RM 17777.78 RM 82222.22
×80000= RM 17777.78
36 36

2 7 7 RM 33333.34 RM 66666.66
×80000= RM 15555.56
36 36

3 6 6 RM 46666.67 RM 53333.33
×80000= RM 13333.33
36 36

4 5 5 RM 57777.78 RM 42222.22
×80000= RM 11111.11
36 36

5 4 4 RM 66666.68 RM 33333.32
×80000= RM 8888.90
36 36

c) Identify which car dealer is offering a better deal to Radzi. State your reason.
Agency Fresh Car dealer better offering better than Agency Cool Car, so Radzi will choose
Agency Fresh Car.
 [3m
]