Question 1 Zheng deposited money into three different accounts, as follows: (Total 12 marks) Sum invested Company A 80,000 Company B 140,000 Company C ? Type of Interest Simple Interest Compound Interest Compound Interest Rate of interest per annum 4.50% 4.20% ? Times invested (years) ? 5 6 Final amount Interest earned (Principle + Interest) 18,000 ? 23,610.35 ? ? 115,110.35 Calculate the missing figures. Question 2 (Total 13 marks) The following information relates to a retailer's business at the end of the first year of trading. Annual sales 506,500 Annual purchases 250,000 Sales returns 45,000 Purchases returns 15,000 Initial stock value 32,200 Final stock value Overhead expenses 36,500 50,000 Calculate: a) Net sales b) Net purchases VISION ACADEMY (2 marks) (2 marks) c) Net profit d) The rate of stockturn per annum (4 marks) (3 marks) e) The average number of days that items remain in stock (2 marks) Question 3 (Total 10 marks) An investor is examining an investment proposal with an anticipated life of four years. An investment of 300,000 is to be made immediately, with the following returns expected in the future: Year 1 net cash inflow Year 2 net cash inflow Year 3 net cash inflow 60,000 150,000 170,000 45,000 Year 4 net cash inflow Using the following tables, calculate the Net Present Value of the project at discount factors of 15% and 16%, and hence calculate the Internal Rate of Return correct to four significant figures: Discounting factor 15% 16% Year 1 0.870 0.862 Year 2 0.756 0.743 Year 3 0.658 0.641 Year 4 0.572 0.552 Question 4 In the bankruptcy of company A, 56.5 sen in the RM JDCADEMY (Total 12 marks) paid to unsecured creditors. (2 marks) was a) Calculate the amount owed to an unsecured creditor who was paid RM10,452.50. The following figures apply to the bankruptcy of company B. Total assets Total liabilities Owed to secured creditors RM 85,000 129,000 74,000 b) Calculate the amount paid to an unsecured creditor who was owed RM1,250. (4 marks) In the bankruptcy of company C, an unsecured creditor who was owed RM75,000 was paid RM48,000. c) Calculate: (i) the rate in the RM paid to unsecured creditors. (2 marks) (ii) how much was owed to an unsecured creditor who was paid RM35,200. (iii) how much was paid to an unsecured creditor who was owed RM18,950. (2 marks) (2 marks) (Total 12 marks) Question 5 Factory F buys two machines. Machine A costs 95,500 and is estimated to have a life of 4 years and a scrap value of 7,500. It is depreciated by the equal instalment method. a) Using the equal instalment method, calculate: (i) the percentage of the cost to be written off during the first year (2 marks) (ii) the book value after one year (2 marks) (iii) the accumulated depreciation after three years. (2 marks) Machine B is depreciated by the equal instalment method over five years. It has the same scrap value as machine A. It also has the same book value at the end of one year as machine A. b) Calculate the original cost of machine B. (4 marks) Factory G buys Machine C for 120,000, and depreciates it by the reducing balance (diminishing balance) method with an annual rate of depreciation of 44%. c) Calculate the book value of Machine C after 2 years. (2 marks) Question 6 ADEMY (Total 11 marks) An index of industrial productivity has the following values over the period 2004 to 2008, with 2004 as the base year. NOIS 2004 100 2005 105.4 2006 2007 2008 109.2 120.7 115.3 a) Express these figures as a chain base index. (5 marks) b) State the percentage change in industrial productivity from 2007 to 2008. c) Calculate the quantity relative for 2008 with 2006 as the base year. (2 marks) (2 marks) The industrial productivity for 2004 was an increase of 8% on the previous year. d) Calculate the index figure for 2006 with 2003 as the base year. (2 marks)