iness Mathematics

SET A

May $10,2024$

Marks: $q,$

Ittiple Choice: Choose the correct answer. $(4$ marks each item$)$

Dianne borrows K$12000$ from her bank to start an importing business. The bank charges an annual interest rate of $2\mathrm{.}5\%,$ compounded monthly over five years. What monthly payments would Dianne have to make?

A$.$ K$231\mathrm{.}99$

B$.$ K$291\mathrm{.}39$

C$.$K$991\mathrm{.}23$

D$.$K$212\mathrm{.}9683$

An immigration consultant takes a loan from a credit union to purchase furniture for a new office. The loan is to be repaid with monthly installments of K$250$ over three years. Calculate the present value of these repayments if the interest rate is $6\mathrm{.}0\%,$ convertible monthly.

A$.K8,271\mathrm{.}80$

B$.$ K $2,871\mathrm{.}20$

C$.K8,217,80$

D$.$K$7,821\mathrm{.}80$

An immigration consultant takes a loan from a credit union to purchase furniture for a new office. The loan is to be repaid with quarterly installments of K$750$ over three years. Calculate the present value of these repayments if the interest rate is $6\mathrm{.}0\%,$ convertible quarterly.

A$.K8,202\mathrm{.}83$

$,$ B$.K8,180\mathrm{.}63$

C$.$K$2,720\mathrm{.}83$

D$.K2,630\mathrm{.}93$

Joshua deposits $K300$ every six months into an investment account that pays an annual interest rate of $5\%,$ compounded semi$-$annually. How much will Joshua have in his account at the end of four years?

A$.K3,600\mathrm{.}84$

B$.K2,620\mathrm{.}83$

C$.$K$6,260,38$

D$.K2,260\mathrm{.}48$

Joshua deposits K$150$ every quarter into an investment account that pays an annual interest rate of $5\%,$ compounded quarterly. How much will Joshua have in his account at the end of four years?

A$.$K $2,200\mathrm{.}87$

B$.$K$2,638\mathrm{.}70$

C$.K6,382,07$

D$.$K$2\mathrm{.}386\mathrm{.}07$

Michael is a budding pilot who borrows $K12000$ from a financial institution to take flying lessons. He will be charged at a rate of $5\%$ per annum, compounded quarterly over six years. What repayments will Michael have to make every three months?

A$.K581\mathrm{.}84$

B$.$K$681\mathrm{.}84$

C$.$K$781\mathrm{.}84$

D$.K881\mathrm{.}84$

A company purchases a photocopier for $K2400$ in $2011.$ Its effective life is estimated to be five years. Use the prime cost method to find the annual depreciation.

A$.$ K$280$

B$.$ K$380$

C$.K480$

D$.$K$580$

Gwen purchased a photocopier for $K2500$ on $7$ August $2012.$ The effective life of a photocopier is $5$ years. The no$.$ of days from $7$ August $2012$ to June $30,2013.$ Determine the depreciation for this item for the $2012-13$ income year using the prime cost method.

A$.K269$

$($B$)K449$

C$.$K$459$

D$.K629$

An office manager purchases a painting for $K2500$ to hang on the wall in the clients' waiting room. The painting is to be depreciated over a period of ten years using the prime cost method. At that time it will be considered to have no value and will be donated to charity. Find the book value of the print after $5$ years. A$.K250$

C$.K750$ D$.$K$1,250$

$($B$)K500$

C$.$K$750$

D$.$K$1,250$

A machine that presses out aluminum cans is purchased for $K150000.$ It has an effective life of $5$ million cans. A$.K60,000$

C$.$K$90,000$

$($b$)K120,000$

to the Lord whatever you do and your plans will succeed." Proverbs $16$:$3$