JARAMOGI OGINGA ODINGA UNIVERSITY OF SCIENCE AND TECHNOLOGY

UNIVESITY EXAMINATION FOR BACHELOR OF BUSINESS ADMINISTRATION

WITH IT FOR FIRST YEAR SECOND SEMESTER

COURSE CODE: ABA 107: MANAGEMENT MATHEMATICS 1

DURATION: 2HOURS APRIL 2017

MAIN CAMPUS

INSTRUCTIONS: ANSWER QUESTION ONE AND ANY OTHER TWO

QUESTION ONE (30 MARKS)

(a) Solve by elimination method

5x+2y=-5

-3x+4y=29 (4mks)

(b)If X=(a,b,c,d,e) Y=(c,d,e,f) and Z=(a,c,d,e,g,h) within a universal set of (a,b,c,d,e,f,g, h,i)
list the elements of the following

(i)(XUY) (2mks)

(ii)(X∩Y) ‘ (2mks)

(c) A finance company loans money at 20% nominal interest but compounds monthly. What is
the APR? (4mks).

1
(d) A company buys a computer for £125,000 and houses it in a special constructed suite at a
cost of£ 20,000.

(i) If the computer depreciates at 25 % ( reducing balance) and the suite appreciates at5 % (
compound).What is the book value of suite and computer after 5years (3mks).

(ii)Taking computer and suite together and using the reducing balance method. What is the
overall depreciation rate? (3mks)

(e)Find the equation of the line perpendicular to the line y-5x+3=0 and passing through points
(3, 2) (4mks)

(f) Find the common ratio and the eleventh term of the following sequence2/9, 2/3 ,
2,6,18…………..(4mks)

(g) If 4,000 is deposited into an account paying 6% annual interest compound quarterly, how
much will be in the account after 5years? (4mks)

QUESTION TWO (20 MARKS)

(a) In a given colledge, students admitted for a course in business management take up to a
maximum of three optional subjects in a year. When 56 students had been enrolled, 16 took
sociology and an optional subject while 21 studied communication skills and 20 studied
statistics, 7 studied sociology and communication skills and 8 studied communication skills
and statistics, 5 studied sociology and statistics while 3 studied all the three optional
subjects.
(i) Represent the information in a Venn diagram (5mks)
(ii)Determine the number of students who study statistics and communication skills but not
sociology (4mks)
(iii)The number of those who study sociology alone (2mks)
(iv)Total number of students who took optional subjects (2mks)
(v)The number of those who studied at least two subjects (2mks)
(b) A man deposited shs 8,550 in a bank which pays 13%per annum compound interest. In
how many years will the money grow to shs 49,500(5mks)
2
 QUESTION THREE (20 MARKS)

A firm is considering two separate capital projects with cash as follows

year 0 1 2 3 4 5
Project 1 80,000 18,000 20,000 25,000 38,000 45,000
Project2 120,000 30,000 50,000 50,000 50,000 15,000

(a )Using the NPV criterion and a discount rate of 15%, choose the project that is more
profitable (5mks)
(b)Find the NPV using a discount rate of 20% and use the result to estimate the IRR for each
project (8mks)
(c)Verify that using the IRR criterion the decision in (b) is reversed and attempt to explain
why (4mks).

QUESTION FOUR (20 MARKS)

(a) (i) Solve for x, y and z
3x+2y-z= -1
x+ y+z= 6
3x+y+2z=15 (4mks)

(ii) A company manufactures three products x, y and z each of which must go through
three processes A, B and C for the following times
Product time spent in process
A B C
X 3 3 1
Y 3 2 3
2 2 0 1
The maximum capacities of process A, B and C are 130, 85 and 60 respectively.
Calculate the numbers of units to be produced of products x, y and z to ensure the
utilizatation of maximum capacity. (6mks)

3
(b) A company is thinking of borrowing £70,000 to invest in a project which is expected
to yield£ 20,000 at the end of each of the next 6 years. If the cost of capital is 20%
(a) Draw up a discounted cash flow table and hence calculate the NPV of the project
(8mks)
(b)Interpret the above value of the NPV in the light of situation (2mks)

QUESTION FIVE (20 MARKS)

(a) ABCD is a rectangle with the centre at the origin. A is the point (5,0) point B and C
lie on the line2y=x+5
Determine the coordinates of the other vertices (6mks)
(b)Determine the present value of £125 payable at the end of each of five years and
subject to a discount rate of 8 % ( 4mks)
(c) A survey of 600 jua kali workers showed that310 regularly listened to seven
o’clock news on radio and that 370 regularly listened to late night news on radio
while 120 regularly listened to both news casts. Determine the workers who listened
to
(i)The seven o’clock news but not the late-night news (3mks)
(ii)The late night news but not the seven o’clock news (3mks)
(iii)Exactly one of the news broadcast (3mks)
(iv)At least one of the news broadcast (1mk)

4
 SCHOOL OF BUSINESS AND ECONOMICS

JARAMOGI OGINGA ODINGA UNIVERSITY (MAIN CAMPUS)

ABA 107: MANAGEMENT MATHEMATICS 1

COURSE OUTLINE: JAN-APRIL 2017

Instructor: Mr. Amos Asembo

Class meets: Wednesday

Time: 11.00am -1.00pm

Course description

This course provides the learner with the skills and competencies for them to articulate and
analyze basic concepts of set theory, Venn diagrams,functions and to be able to solve basic
mathematics for finance and capital investment appraisal.

Learning objectives

The objective of this course is to enhance the analytical and problem solving skills of the learner
with respect to basic concepts of set theory. Venn diagrams, functions, simultaneous equations,
mathematics for finance and capital investment appraisal.

Expected Learning Outcomes:

At the end of the learning exercise the learner is expected to:

1. Understand set theory

2. Understand Venn diagrams
3. Understand Linear and non Linear functions
4. Understand establishing of functions and application of functions
5. Understand simultaneous equation
6. Understand simple and compound interests
7. Understand present and future values

5
 8. Understand annuities
9. Understand capital investment appraisal.

TOPICS COVERED

Week Topic

One Set theory

Two Venn diagrams

Three Linear functions

Four Non –Linear functions

Five Establishing functions

Six Application of functions

Seven Simultaneous equations

Eight Simultaneous equations

Nine Mathematics for finance simple and compound interests

Ten CAT

Eleven Present and Future Values

Twelve Annuities

Thirteen Capital Investment appraisal

Teaching methodology

Lecturer, group discussion and presentations

Grading

Assignment 10%

Sit –in –tests 20%

Semester Examination 70%

Required Reading

1. Terry Lucey (2002) Quantitative Techniques

2. N.A. Saleemi (2011) Quantitative Techniques simplified
3. Teresa Bradley &Paul Patton (2002) Essential Mathematics for Economics and Businesss
4. Andre Francis (2008) sixth Edition.Business Mathematics and Statistics

6
 5. Any other relevant textbook on management mathematics and relevant websites.

NB: Please contact the librarian for more E- Learning.

Signed ……………………………… ……………………………….

Course instructor Dean SBL