Question 1

An invoice dated 18 March 2020 for RM5,400 (including RM200 handling charges) was offered trade discounts of 10% and 8% and the cash terms of 5/15, 2/30 and n/60. Find

1. i)the net price after trade discount.
2. ii)the amount of payment paid on 14 April 2020.

Question 2

Jovian bought 30 pairs of bridal shoes at a list price of RM13,700 and received 5% discount on his purchase. He then sold all the shoes and made a net profit of 45% based on cost. If the operating expenses were 20% based on the selling price, find

i) the selling price for each pair of bridal shoes.

ii) the maximum markdown percentage that could be offered so that there is no loss.

Question 3

Azfar received a promissory note on 10 June 2020 and the note was discounted at a rate of 5.3% after 40 days. The note will mature on 31 August 2020. The proceeds received were RM15,000. Compute the maturity value of thenote using Banker's rule.

Question 4

b) RM8,000 was invested by Hilman for 10 years. The interest rate offered was 4.25% compounded quarterly. After 4.5 years, Hilman invested another RM2,500. Find the accumulated amount of his investment after 10 years.

Question 5

A car rental company estimates the value of its model AA cars will depreciate at an annual rate of 15% based on the declining balance method. How long does it take for a car of the same model to have a book value of RM10,000 if the cost was RM60,000.

(6 marks)