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Business Mathematics-2-July-Dec 14

Business Mathematics-2-July-Dec 14

Section A (20 Marks)

Write short notes on any four of the following:

  1. Mean Proportional
  2. Preference Shares
  3. Simple Interest (S.I.)
  4. Limit of a Function
  5. Critical Points


Section B (30 marks)

(Attempt any three)

  1. What do you understand by the term equality of ratios? Give example. Write various properties of ratios.
  2. Calculate the present value of an annuity of 3,000 in 6 years at 14%p.a.
  3. If the monthly incomes of A and B are in the ratio of 3 : 2 and those of B and C are in the ratio of 9 : 7, what is the ratio of the monthly incomes of A and C.
  4. What are variations? Explain the different types of variations with worked examples.


Section C (50 marks)

(Attempt all questions. Every question carries 10 marks)


Read the following situations and answer the questions respectively:

Case 1: Geometric Sequence and Common Ratio

Alberta’s crude oil reserves are diminishing by 10% each year. Knowing that 100000 Ml were the initial reserves, show that the crude oil reserves describe a decreasing geometric sequence and find the common ratio for it.


Question 1: Which volume will remain four years later?

Question 2: Plot a graph of the sequence for a period of 20 years.


Case 2: Stocks

Stocks of a company are initially issued at the price of $10. The value of the stock grows by 25% every year.

Question 3: Show that the value of a stock follows a geometric sequence.

Question 4: Calculate the value of the stock ten years after the initial public offering.

Question 5: Plot a graph of the sequence over a period of 10 years after it was issued.

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