Final Exam session 2 2009

Final Exam session 2 2009 - THE UNIVERSITY OF NEW SOUTH...

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- 1 - THE UNIVERSITY OF NEW SOUTH WALES SCHOOL OF ECONOMICS SEMESTER 2, 2009 COMM5005 QUANTITATIVE METHODS FOR BUSINESS – Final Examination 1. TIME ALLOWED – 3 hours 2. READING TIME – 10 minutes 3. THIS EXAMINATION PAPER HAS 10 PAGES 4. TOTAL NUMBER OF QUESTIONS – 20 multiple choice questions and 4 Problems 5. TOTAL MARKS AVAILABLE – 60 6. THE EXAMINATION PAPER HAS TWO PARTS . PART A: 20 multiple choice questions worth 1 mark each. Answer all questions. No marks will be deducted for incorrect answers. 7. PART B: 4 Problems. Answer all of them. Problems are not of equal value. Marks available are shown in the examination paper. 8. CANDIDATES MAY BRING TO THE EXAMINATION - Approved calculators, any examination materials or books. 9. THE FOLLOWING MATERIALS WILL BE PROVIDED – Graph paper 10. ALL ANSWERS MUST BE WRITTEN IN INK. EXCEPT WHERE THEY ARE EXPRESSLY REQUIRED, PENCILS MAY BE USED ONLY FOR DRAWING, SKETCHING OR GRAPHICAL WORK 11. THIS PAPER MAY BE RETAINED BY CANDIDATE Please see over

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- 2 - PART A – Each question is worth one mark. Indicate the correct answer in pencil on the answer sheet. ) 5 ln - 14 ln ( 3 1 (e) 5 ln - 14 ln (d) ) 5 ln - 2 ln ( 3 (c) ) 5 ln - 14 ln ( 3 (b) ) 5 ln - 2 ln ( 3 1 (a) equals then x 6, 8 - 5e If . 1 3x = where ln denotes logarithm to base e, the exponential constant . 2. A sum of money is invested for 2 years. For the first year, the investment earns interest at the rate of 5 % per annum compounded quarterly and for the second year, it earns 4% per annum compounded monthly. If all interest earned in the first year is re-invested, the investment earns an effective annual rate of interest of (a) 9.38 % (b) 4.58 % (c) 4.68 % (d) 4.93 % (e) 4.50 % 3. The investment cost in a DOTCOM company is \$ 1.6 million. The expected net cash flows are \$ 100,000 at the end of the first year, \$ 260,000 at the end of the second year and \$ 350,000 at the end of each of the following eight years. If an interest rate of 9% per annum compounded annually applies, the net present value (NPV) of the investment project is (a) \$ 1,941,071.20 (b) \$ 1,560,000.00 (c) \$ 337,186.96 (d) \$ 341,071.20 (e) \$ 1,937,186.69 4. To achieve a savings goal of \$ 20,000 in three years’ time, an individual decides to make 12 equal deposits in a savings account at 3-monthly intervals with the first deposit made now. If the rate of interest earned by the savings account is 6% per annum compounded quarterly, each deposit should be (a) \$ 1,510.94 (b) \$ 1,533.60 (c) \$ 1,613.26 (d) \$ 1,834.46 (e) \$ 1,481.65 Please see over
- 3 - 5. Upon the birth of their first child, a couple decides to deposit \$ 5,000 into a savings account on each of her first twenty birthdays. If the savings account earns interest at the rate of 7% per annum compounded annually, the amount in the account (including the 20 th deposit) will be (a) \$ 156,514.32 (b) \$ 204,977.46 (c) \$ 105,940.10 (d) \$ 219,325.89 (e) \$ 180,894.80 6. A loan is repaid with 3 payments of \$ 20,000. They are made at the end of 6, 12 and 18 months respectively. The interest rate on the loan is 5 % per annum compounded semi- annually. The finance charge (total interest) on the loan is (a) \$ 2,914.15 (b) \$ 2,879.53 (c) \$ 1,469.12 (d) \$ 5,535.04 (e) \$ 2,811.79 7. In a given market, the demand function for potatoes is given q d = 2 – 0.2 p, where the quantity demanded is measured in millions of tons and the price p is in dollars per kilo.

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This note was uploaded on 10/17/2010 for the course D dd taught by Professor Ddd during the Spring '10 term at Clayton.

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Final Exam session 2 2009 - THE UNIVERSITY OF NEW SOUTH...

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