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A loan of GH¢3,000 at an effective annual interest rate of i = 12% is amortized by means of 12 annual payments, beginning a year after the loan is taken.
Hint: The schedule should have the following columns: Payment, Interest Due, Principal Repaid, and Outstanding Balance.
Required:
Construct an amortization schedule.
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b) Use the sample data below to answer the following questions:
Required:
i) Calculate the sample mean, variance, and standard deviation for X. (5 marks)
ii) Calculate the sample mean, variance, and standard deviation for . (5 marks)
iii) Calculate the sample covariance between X and Y. (3 marks)
iv) Calculate the sample correlation between X and . (3 marks)
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Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
a) If the total cost (in Ghana cedis) of producing xx items is given by the function C (x) = 2600 + 2x + 
Required:
i) Calculate the total cost, average cost, and marginal cost of producing 5000 items. (6 marks)
ii) Determine the production level at which the average cost will be the lowest. (4 marks)
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a) Receipts at a particular depot have amounts which follow the Normal distribution with a mean of GH¢103.60 and a standard deviation of GH¢8.75.
Required:
i) Determine the percentage of receipts over GH¢120.05.
ii) Determine the percentage of receipts below GH¢92.75.
iii) Determine the percentage of receipts between GH¢83.65 and GH¢117.60.
iv) Determine the receipts amount such that approximately 25 percent of receipts are greater.
v) Above what amount will 90 percent of receipts lie?
b) If 10.56 percent of receipts have an amount above GH¢110.05 and 4.01 percent of receipts have an amount above GH¢120.05.
Required:
Calculate the mean and standard deviation of the receipts assuming that they are normally distributed.
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a) If from a normal pack of 52 cards, consisting of four suites each of 13 cards, one card is randomly selected:
Required:
Calculate the probabilities of selecting the following:
i) An ace
ii) A club
iii) An ace or a club
iv) The ace of clubs
v) A picture card (i.e. a jack, queen or king)
vi) A red card
vii) A red king
viii) A red picture card
b) Given that a card selected is red, calculate the probability that it is a picture card.
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Alpha Transport Company buys a vehicle for GH¢265,000. The value of the vehicle depreciates on a reducing balance basis at 17% per annum. The company plans to replace this vehicle in 5 years’ time, and they expect the price of a new vehicle to increase annually by 12%.
Required:
i) Calculate the book value of the vehicle in five years’ time. (3 marks)
ii) Determine the amount of money needed in the sinking fund for the company to be able to afford a new vehicle in five years’ time. (3 marks)
iii) Calculate the required monthly deposits if the sinking fund earns an interest rate of 11% per annum compounded monthly. (3 marks)
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Every Monday, Kwei puts GH¢30 into a savings account at the Ring Bank, which accrues interest of 6.92% per annum compounded weekly.
Required:
i) Draw a cash flow timeline showing the payments, the interest rate, and the present values for the first four payments. (3 marks)
ii) Determine how long it will take Kwei’s account to reach a balance of GH¢4,397.53. Convert your answer into the number of years and days to the nearest integer. (6 marks)
iii) Determine how much interest Kwei will receive from the bank during the period of his investment.
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The AXM manufacturing company has determined that the cost function for producing a particular type of pavement block is given by:
Where x is measured in number of units and in GH¢.
Required:
i) Calculate the derivative of with respect to .
(5 marks)
ii) Determine how quickly the cost is changing at x=1000
(4 marks)
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A model for calculating the amount required, , to achieve a specified sum at some future point in time, years at a rate of interest r, is given by:
Required:
i) Determine the present value of GH¢7000.00 payable in 4 years.
(7 marks)
ii) Determine the present value of GH¢8000.00 payable in 6 years.
(7 marks)
You are required to discount these future sums using an interest rate of 8%.
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Find Related Questions by Tags, levels, etc.
A paper-producing company has determined that its profit from selling x hundred boxes of envelopes is given by the expression:
Required:
i) Determine the number of boxes the company must sell to break even.
(5 marks)
ii) Determine the number of boxes the company must sell to make money.
(5 marks)
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Countess Company trades in bars of Golden Tree Chocolate from Tema Cocoa Processing Company Limited. The number of bars of chocolate sold per quarter over a four-year period by Countess Company is:
| YEAR | QUARTER 1 | QUARTER 2 | QUARTER 3 | QUARTER 4 |
|---|---|---|---|---|
| 1 | 20 | 10 | 4 | 11 |
| 2 | 33 | 17 | 9 | 18 |
| 3 | 45 | 23 | 11 | 25 |
| 4 | 60 | 30 | 13 | 29 |
Required:
i) Plot the data on a graph (3 marks)
ii) Calculate a linear regression trend equation for the data (5 marks)
iii) Calculate the four seasonal components using a multiplicative model (5 marks)
iv) Forecast the number of bars of chocolate for the next two years (5 marks)
v) Comment on the reliability of the forecasts in iv) above (2 marks)
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Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
Mr. Boo, a Chartered Accountant, is investigating the distribution of the number of fuel gallons consumed per day in the year 2010. He conducted a survey on the number of fuel gallons consumed per day and recorded the following results:
| NUMBER OF FUEL GALLONS | PERCENTAGE OF CONSUMPTION |
|---|---|
| 0 but under 5 | 38% |
| 5 but under 10 | 25% |
| 10 but under 15 | 16% |
| 15 but under 20 | 21% |
Required:
a) Calculate the following measures of central tendency: i) Mean (3 marks) ii) Median (3 marks) iii) Mode (3 marks)
b) Compute the following measures of dispersion and skewness: i) Inter-Quartile Range (3 marks) ii) Variance (3 marks) iii) Appropriate coefficient of skewness (3 marks)
c) Using (a) and (b) above, comment on the distribution of the number of fuel gallons consumed per day in 2010 (2 marks).
(Total: 20 marks)
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The personnel department of Dropper Ltd, a large cocoa processing company in DropperLand, is concerned about absenteeism among its shop floor workforce. The mean number of absentees per day for each quarter of the years 1999 to 2001 and Quarter 1 in 2002 is given in the table below:
| Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|
| 1999 | 25.10 | 14.40 | 9.50 | 23.70 |
| 2000 | 27.90 | 16.90 | 12.40 | 26.10 |
| 2001 | 31.40 | 19.70 | 15.90 | 29.90 |
| 2002 | 34.50 | – | – | – |
Required:
a) Plot the data on a graph, leaving space for the remaining 2002 figures. (3 marks)
b) Using the method of 2-quarterly centered moving averages,
i) Determine the trend in the series and superimpose this on your graph in (a). (4 marks)
ii) Determine the equation of the trend line above by considering only the first and last centered moving average value on your graph in (i). (3 marks)
c) Using an appropriate decomposition model, determine the seasonal variations in the data. Give reasons for your choice of model. (5 marks)
d) Use your analysis above to roughly forecast the mean number of absentees for the remaining quarters of 2002. Comment on your forecast. (5 marks)
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Tema Steel Plant is capable of producing q1 tons per day of low-grade steel and q2 tons per day of high-grade steel, where: 
If the fixed market price of low-grade steel is GH¢6.90 and the fixed market price of high-grade steel is GH¢13.80:
i) Determine the number of tons of low-grade steel and high-grade steel to be produced to maximize total revenue. (10 marks)
ii) Determine the maximum total revenue. (4 marks)
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