# BUSINESS CALCULATIONS (BBU1112) SEMESTER TEST 2 by monkey6

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BUSINESS CALCULATIONS (BBU1112) SEMESTER TEST 2
DATE: September 2005         MARKS: 70                    TIME: 90 minutes                         %

 Show all your calculations
 Do your Rough work on the Rough work page at the end of the paper
 Round off all your calculations correct to two (2) decimal places

1. Sipho borrows R200 from his girlfriend Pamela so that he can treat her to dinner. Because
she likes him she charges only 5% simple interest. Sipho pays Pamela back 30 days later.
How much does he pay back?                                                             [4]

F = …………………….              P = 200……………          i =…5%………..         n = 30………………

…F…… =P(1+ …………….. = …………………………….…………………………..
Formula                  substitution

= R ……………..

2. Mr John Bigsave decides to put R5 000 into a fixed deposit account that receives 12%
simple interest. How long must he keep the money in the account if he wants to get R8400
out?                                                                                   [4 1 ]
2

F = …………………….              P = ……………         i =…………..        n = ………………

……… = …………….. = ……………………………………………………………
Formula                   substitution

 n = ……………… years
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3. Lucky wins R2 000 playing Lotto. He decides to put the money in an account that pays
interest compounded monthly. He has R2100 after 6 months. What was the interest rate per
annum?                                                                                         [5 1 ]
2

F = …………………….              P = ……………                 i =…………..        n = ………………

……… = …………….. = ……………………………. …………………………..
Formula                   substitution

= …………….. = ………………………% per month = ………………% per annum.

4. Cool Dude wants to double the money he won at a surfing competition, so that he can buy
a new surfboard. How long will it take him to double his winnings if he receives 7.5%
interest compounded quarterly?                                                           [5]
F = …………………….              P = ……………                 i =…………..        n = ………………

……… = …………….. = ……………………………. …………………………..
Formula                    substitution

= …………….. quarters = ……………………years

5. Mitch the lifesaver makes monthly deposits of R300 into a special “Hawaii Holiday”
account. The account earns an interest rate of 9.75% compounded every second month.
How long will it take for him to save R8000 he needs for the plane ticket to Hawaii?             [5]
F = …………………….              P = ……………                 i =…………..        n = ………………

n = …………….. = ……………………………. …………………………………
Formula                    substitution

= …………….. two month periods                   = ……………………years
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6. Ms Radue borrows money from the bank to buy a house. The interest rate of 9.2% is
compounded monthly. She decides to pay back the loan within 15 years. If her monthly
payment is R2 500, what will she have paid for the house after 15 years.        [4 1 ]
2

F = ………… P = …………… R = ………….. i =…………..                            n = ………………

F or P         = …………….. = ………………………….…………………………………
select one        Formula                substitution

= R ……………..

7. Mrs Olde retires at age 65 with R1 200 000 in her retirement fund. The fund will pay her
an income every second month in advance. The fund earns 8% p.a. compounded every two
(2) months. She receives her first income cheque at the beginning of the month. If she
wants the money to last for 25 years, how much can she withdraw from the fund every
second month? [4 1 ]
2

F = …………………….                   P = ……………    i =…………..        n = ………………

F or P         = …………….. = ………………………….…………………………………
select one      Formula                 substitution

 R = R ……………..
Page 4 of 7

8. Mr Gold has invested R 5000 in platinum stocks every 3 months for the last 10 years. The
stocks earn an interest rate of 12.5% p.a. compounded quarterly. What is the present value
of the stocks?                                                                           [4 1 ]
2

F = …………………….                   P = ……………    i =…………..        n = ………………

F or P        = …………….. = ……………………………………………………………
select one       Formula                               substitution

= R ……………..

9. Jake borrowed R12 000 from Loan Sharks Ltd. The interest rate per annum charged is 32%
compounded weekly. What are his weekly repayments for the next 6 months. ( There are
52 weeks in a year)                                                             [4 1 ]
2

F = …………………….                   P = ……………    i =…………..        n = ………………

F or P        = …………….. = …………………………….………………………………
select one     Formula                  substitution

 R = R …………….. per week
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10. Lassie Ritch inherits R5 000 000 from her long-lost uncle. She decides to buy a house for
R2 500 000 and invests the rest of her money I an account that pays 15% p.a. compounded
semi-annually. She will receive the first of 20 equal semi-annual payments in 5 years time,
when she retires. Calculate the size of the payments.

F = …………………….                           P = ……………       i =…………..          n = ………………

F or P          = …………….. = …………………………. …………………………………
select one                 Formula                 substitution

 R = R ……………..

11.
11.1.          Complete the frequency distribution table below
[10]
Class          Test Score Class Mark Frequency                 Relative    Cumulative    Relative
( fi )                  f i (%)        fi       cumulative
fi
1              [0,20)                         1               3.03        1
2             [20,40)                         4
3             [40,60)                 50   17
4             [60,80)                         8
5             [80,100)                        3
Total
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11.2.   Construct a frequency histogram                     [6]
FREQUENCY HISTOGRAM

11.3.   Construct a frequency polygon                       [6]
Frequency Polygon
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11.4.   How many people in the class scored more than 80%? ________________ [1]
11.5.   What percentage of the class has a test score of less than 40%. ________     [1]

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