Business Calculations L2 Past Paper Series 4 2006

7/28/2019 Business Calculations L2 Past Paper Series 4 2006

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1 ASE 2003 4 06 1

2003/4/06 >f0t@W9W2`Bk4iEWBwSV#

SERIES 4 EXAMINATION 2006

BUSINESS CALCULATIONS

LEVEL 2

(Code No: 2003)

FRIDAY 17 NOVEMBER

__________

Instructions to Candidates

(a) The time allowed for this examination is 2 hours 30 minutes.

(b) Answerall 8 questions.

(c) The marks available are indicated at the end of each question.

(d) Your answers should be written in blue or black ink/ballpoint. Pencil may be used only forgraphs, charts, diagrams, etc.

(e) All answers must be clearly and correctly numbered but need not be in numerical order. If noworking is shown, a correct answer may receive full marks but an incorrect answer will receive nomarks. Candidates are therefore advised to indicate how they arrive at their answers.

(f) All calculations, where applicable, must be shown on the answer paper provided.

(g) The use of mathematical and statistical tables is allowed.

(h) Candidates must pay due regard to good figures, accuracy and neatness in their work.

(i) Candidates may use calculators provided the calculators give no printout, have no word displayfacilities, are silent and cordless. The provision of batteries and responsibility for their conditionmust rest with the candidate.

_________


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Answer all questions

QUESTION 1

Cecille deposits 20,000 for 3 years at compound interestof 5.5% per annum.

(a) Calculating year on year, calculate the total of compound interest earned after 3 years (6 marks)

In a different account Cecille deposits 15,000 for 8 years at compound interest of 4.2% per annum.

(b) Using the compound interest formula, calculate the total interest earned after 8 years. Give youranswer to the nearest penny

(5 marks)

(Total 11 marks)

QUESTION 2

A retailers total sales in a year were 252,000. The cost price of goods sold was 166,000.

During the year the following overheads were paid:

Wages 17,251Heat, light, telephone 4,180Rent 9,700Office expenses 6,989

Calculate:

(a) gross profit (2 marks)

(b) net profit (3 marks)

(c) the net profit as a percentage of the total sales (2 marks)

The wages were paid to five staff who worked a total of 2,654 hours.

(d) Calculate the average payment per hour (2 marks)

(e) Calculate the average number of hours worked per member of staff (2 marks)

(Total 11 marks)


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QUESTION 3

(a) Three employees, Farooq, Geraint and Hussain, receive their pay in three different ways.

Farooq receives a flat-rate salary of 20,566 per annum.

Geraint receives a wage of 210 per week, plus 1% commission on sales.

Hussain receives a standard rate of 6.80 per hour.

In a particular week:

Geraint sells goods to the value of 17,400;

Hussain works 38 hours at standard rate, plus 5 hours overtime paid at one-and-a-quarter timesstandard rate.

Calculate how much each of the three employees received for that week.

(8 marks)

(b) There are 150 employees in a company. Their annual leave entitlements are given in thefollowing table:

Number of DaysLeave per Year

Number ofEmployees

Category A 20 38

Category B 22 33

Category C 23 52

Category D 25 27

150

Calculate the average (mean) number of days leave per employee (4 marks)

(c) Two companies issued shares in their businesses

Company X issued 50,000 shares at 7.60 each

(i) Calculate how much was raised by the share issue (2 marks)

Company Y issued shares in America at $4.40 each and raised $506,000

(ii) Calculate the number of shares issued (2 marks)

(Total 16 marks)


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QUESTION 4

Stefan orders packs of screws as follows:

100 economy packs at 4.00 each50 standard packs at 6.70 each

25 premium packs at 9.59 each

(a) Calculate the total cost of the order, before any discount (3 marks)

(b) Calculate the average cost to Stefan of one pack of screws, before any discount(3 marks)

A cash discount of 12% is offered for prompt payment.

(c) Calculate the payment made after deduction of the cash discount (3 marks)

Anya also ordered packs of screws at the above prices. She ordered economy, standard andpremium packs and ordered the same number of each type of pack.

(d) Calculate the average cost to Anya of one pack of screws, before any discount (3 marks)

Erica ordered 175 packs of nails at a cost of 18.90 per 5 packs

(e) Calculate the cost to Erica before any discount (2 marks)

(Total 14 marks)


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QUESTION 5

An insurance company charges the following annual premiums for property insurance:

Buildings Contents

15 per 10,000 insured 1.45 per 1,000 insured

(a) A property owner wishes to insure a building valued at 210,000 and contents valued at 35,400

Calculate the annual cost to the householder of insuring:

(i) the building (2 marks)

(ii) the contents (2 marks)

(b) A second owner pays a total annual premium of 420 in 12 equal monthly instalments

A service fee of 4% of the total annual premium is charged when payment of the premium is made by12 equal monthly instalments. The service fee is also paid in equal monthly instalments.

Calculate, for the second owner:

(i) the amount of the service fee for the year (2 marks)

(ii) the amount of each monthly payment including premium and service fee (3 marks)

For budgeting purposes, the second owner wishes to know how much of her weekly income is neededfor this insurance.

Calculate:

(iii) the cost of premium plus service fee per week (2 marks)

(Total 11 marks)


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QUESTION 6

J ess travelled to America to visit her brother. She changed 600 into dollars at a rate of exchange of1 =$1.765.

(a) How much did she receive in dollars? (2 marks)

She spent $817.10 during her stay. She decided to return via France, and converted her remainingdollars into euros at a rate of 1 =$1.18.

(b) How much did she receive in euros? (3 marks)

On leaving France, she had 25 remaining

(c) How much in euros, did she spend in France? (1 mark)

On returning to Britain, J ess decided to keep a one euro coin for her collection, and converted the restto pounds sterling at 1 =1.50.

(d) How much in pounds sterling () did she receive? (3 marks)

While in France, J ess bought goods weighing a total of 1.98 kilograms.

(e) How much do these goods weigh in pounds?

Use the conversion 1 lb =0.45 kg (2 marks)

(Total 11 marks)


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2003/4/06 7 Education Development International plc 2006

QUESTION 7

The same make of sofa is available in two different stores. Dwayne wished to buy one on hirepurchase.

Store A sells the sofa at a cash price of 1,800 or on hire purchase terms.

The hire purchase terms require a cash deposit of one-fifth of the cash price and 24 equal monthlyinstalments. The hire purchase loan is the amount outstanding after payment of the deposit.

(a) Calculate the hire purchase loan (3 marks)

Simple interest is charged at 9% per annum. The total interest is added to the loan before calculationof monthly instalments.(b) Calculate:

(i) the total simple interest added (2 marks)

(ii) the cost of each monthly instalment (3 marks)

(iii) the total cost of the sofa if bought on hire purchase (2 marks)

Store B sells the sofa on hire purchase for a deposit of 350 and 12 monthly instalmentsof 137.55 each.

(c) (i) Calculate the total cost of the sofa if brought on hire purchase at store B (2 marks)

(ii) Give a reason why Dwayne might choose to purchase the sofa on hire purchasefrom store A

(1 mark)

(Total 13 marks)

QUESTION 8

Mrs Begum, Mrs Ivanov and Mrs Prince formed a partnership business on 1 April with invested capitalof 200,000, 275,000 and 150,000 respectively.

(a) Express their investments as a ratio in the simplest terms (2 marks)

The profit for the nine months ended 31 December was 47,500.

(b) Express the profit as a percentage of the total investment (3 marks)

For this period, each partner received interest on her original capital of 6% per annum. In addition MrsBegum received a salary of 560 per month.

(c) Calculate

(i) How much interest was received for this nine month period by Mrs Ivanov (2 marks)

(ii) The total of interest and salary received during this period by Mrs Begum (3 marks)

(iii) The profit remaining after payment to the partners of interest and salary (3 marks)

(Total 13 marks)

Business Calculations L2 Past Paper Series 4 2006

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