Business Calculations L2 Past Paper Series 2 2007

7/28/2019 Business Calculations L2 Past Paper Series 2 2007

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2003/2/07 Page 1 of 5 ASE 2003 2 07 1

Series 2 Examination 2007

INSTRUCTIONS FOR CANDIDATES

Answer all 8 questions.

Write your answers in blue or black ink/ballpoint. You may use pencil only for graphs,charts, diagrams, etc.

All answers must be correctly numbered but need not be in numerical order.

Workings must be shown.

You must show all calculations, where applicable, on the answer paperprovided.

You can use mathematical and statistical tables.

Your work should be accurate and neat.

You may use a calculator provided the calculator gives no printout, has no word displayfacilities, is silent and cordless. The provision of batteries and their condition is yourresponsibility.

CERTIFICATE IN BUSINESS CALCULATIONS

Level 2

Wednesday 11 Apri l

Subject Code: 2003

Time allowed: 2 hours 30 minutes


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QUESTION 1

J ulia deposits 7,500 in a bank account that pays 3% compound interest per annum.

(a) How much will be in the account at the end of five years?(3 marks)

(b) Calculate the average interest per year. (3 marks)

J ulia also deposits 7,500 for five years in a bank account that pays 3.5% simple interest per annum.

(c) Calculate the total interest received.(3 marks)

Karl deposits 16,000 in a bank account that pays simple interest. After 3 years the total interestpaid by the bank is 1,920.

(d) What is the annual rate of simple interest?(4 marks)

(Total 13 marks)

QUESTION 2

A retailers total sales in a year were 840,000. The cost of goods sold was 622,800.

During the year the following overheads were paid:

Wages 70,500

Heat, light, telephone 5,440Premises 24,850Office expenses 7,210

Calculate:

(a) gross profit(2 marks)

(b) total overheads(2 marks)

(c) net profit(2 marks)

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

(e) the average sales per month(2 marks)

At the end of the year the retailer issued shares in the business.He planned to raise 3,000,000 through the issue of 1.2 million shares.

(f) Calculate the price per share.(3 marks)

(Total 13 marks)


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QUESTION 3

Danuta and Faisal are shop assistants. Danuta receives a weekly wage of 203 plus commission of0.07 in the pound on goods sold.

During one week, Danuta sold goods worth 1,100.

(a) Find Danutas gross earnings in that week.(3 marks)

The following are deductions from Danutas gross earnings:

Pension contribution 7.5% of gross earningsIncome tax 35.

(b) Calculate Danutas net earnings for the week.(3 marks)

Faisals weekly wage is 227 and his commission on goods sold is 0.05 in the pound.

During another week, Danuta sold the same value of goods as Faisal. Danuta and Faisal received the

same gross earnings.

(c) Calculate the value of goods sold by each person during that week.(5 marks)

(Total 11 marks)QUESTION 4

An office manager of a business orders the following items:

Quantity Description Unit cost

15 boxes ball pens 3.05 per box4 cartons erasers 2.32 per carton

100 rulers 0.12 each12 packs pencils 9.95 per pack

(a) Calculate the total cost of the above items.(3 marks)

Other items are added to the order and then the order is subject to a trade discount of 10%.After trade discount the total cost of the order is 288.90.

(b) Calculate the total cost of the order before trade discount.(3 marks)

A cash discount of 2% is deductible if the amount owed to the supplier is paid within 28 days.

(c) Calculate the amount paid by the business for settlement within 28 days.(4 marks)

The manager order packs of envelopes as follows:

Quantity Descripti on Unit cost

50 packs white, window 1.70 per pack80 packs recycled, buff 1.60 per pack10 packs embossed 4.04 per pack

Each pack contains 100 envelopes.

(d) Calculate the average cost of one envelope. (6 marks)

(Total 16 marks)


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QUESTION 5

Christos wants to buy a 15,500 car on hire purchase. Companies A and B offer the following terms:

Company A:1,500 deposit, plus 12 monthly payments of 1,350 each.

Company B:10% deposit, plus 16,650 paid in equal monthly instalments over one and a half years.

Compare the deposits, the monthly payments, and the total payments and advise Christos on whichcompany to choose.

(Total 13 marks)

QUESTION 6

Ying from Britain decided to go on a tour of Asia. She converted pounds sterling into other currenciesas follows:

350 into Malay Ringgits at RM6.5 to the 300 into J apanese yen at 200 to the 350 into Singapore Dollars at $2.85 to the

(a) Calculate how much she received in each currency.(4 marks)

She returned to Britain with RM50.50, 710 and $1.60. She converted RM50 and 700 intopounds sterling at the same exchange rate as above.

(b) Calculate how much in total Ying received in sterling.(4 marks)

Ying kept the remaining Malay, J apanese and Singapore currency in coins as a reminder of her trip.

(c) Giving your answer in pence to the nearest penny, calculate the value in sterling of the currencyshe kept as a reminder of her tour of Asia.

(4 marks)

(Total 12 marks)


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2003/2/07 Page 5 of 5 Education Development International plc 2007

QUESTION 7

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

Buildings Contents

1.75 per 1,000 insured 3.50 per 1,000 insured

A property owner wishes to insure a building valued at 155,000 and contents valued at 28,000.

(a) Calculate the total annual cost to the owner of insuring the buildings and contents.(4 marks)

A service fee of 4.5% of the total annual cost is charged when payment is made by 12 equal monthlyinstalments

(b) Calculate:

(i) the service fee

(2 marks)(ii) the amount of each monthly instalment

(4 marks)

(Total 10 marks)

QUESTION 8

Lindi and Stacey are partners in a business with capital invested in the ratio 1:2.

(a) Lindi, the junior partner, invested capital of 25,000. How much is Staceys investment?(2 marks)

With Staceys agreement, Lindi withdrew half of her capital.

(b) Calculate the new ratio of their investments, in its lowest terms.(3 marks)

Lindi and Stacey decide to withdraw 7,800 of their profits. They share this in proportion to their newcapital investments.

(c) Calculate Lindis share of these profits.(3 marks)

(d) Calculate how much more Lindi would have received if she had not withdrawn part of her originalinvestment?

(4 marks)

(Total 12 marks)

Documents

Business Calculations L2 Past Paper Series 2 2007