CONTEMPORARY BUSINESS MATHEMATICS

This question booklet has FIVE (5) questions.

Each question is worth 20 marks.
Answer ALL questions in the space provided in this booklet.
Total marks per question : 20 marks
Suggested working time : 30 minutes per question

Question 1
a. Beth is preparing a casserole. The recipe is written to serve six individuals but she is
only serving four. How much of each of the following ingredients should Beth use if
she adjusts the amounts based on the number of people she is serving? [5]
ORIGINAL RECIPE NEW RECIPE
6 eggs
2 ½ cups of sugar
3 tablespoons of oil
½ teaspoon salt
3 ¾ cups of flour

b. Charlotte earns $16 per hour waitressing during weekdays (Monday – Friday). From
Monday to Friday, she works a total of 15 hours.
i. How much does Charlotte earn for working from Monday to Friday? [1]

On Saturdays Charlotte’s pay is 10% more than her weekday rate and on Sundays her
pay is 20% more than her Saturday rate.
ii. How much does Charlotte earn per hour on Sundays? [2]

iii. Determine Charlotte's weekend pay when she works 2 hours on Saturday and 5
hours on Sunday. [2]

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c. i. The ratio of boys to girls in Jessie’s Mathematics class is 2:3. If there were 12 girls in
the class, how many boys were there? [1]

ii. When Granny cooks some rice, she adds 4 cups of water to 3 cups of rice. How
many cups of water does she need for 5 cups of rice? Give your answer as mixed
numbers. [2]

iii. A pack of 64 MamyPOKO nappies costs $21.95. A bulk package of Drypers

containing 144 nappies costs $52.49. Which brand is the better buy? Justify your
answer. [2]

iv. Angelique sells chemical-free beauty products. A body moisturiser is sold in bottles
in two sizes:
375 mL for $19.70 or 600 mL for $32
Angelique needs to advise her clients which bottle is better value for money. Use
calculations to show which bottle is the better buy. [3]

v. Margaret runs a boutique. She makes a profit of between 10% and 40% on the cost
price of all clothes sold. Margaret sells a dress for $280 with the profit in her desired
range. Determine the lowest and highest price Margaret could have paid for the
dress. [2]
[ TOTAL : 20 MARKS]

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QUESTION 2
a. The FIA program is planning a field trip for students to Cameron Highlands. However,
the college has set the rules that, a teacher must accompany every ten students on the
trip. It was also known that for every 3 boys, there were 2 girls who went for the trip.

i. If four teachers were going along, how many boys and girls actually will be going
for the trip? [4]

ii. The transport charges are $787.00 for the whole trip which had to be shared equally
among all the students and the teachers. However, the organizers of the trip have
managed to obtain a 5% discount on the transport charges. Based on the number of
students as determined in (a) (i), how much does each participant need to pay for the
transportation charges to the nearest dollar? [2]

iii. Each student has to pay for the trip fare as follows:
Lodging in Cameron Highlands : $ 16.50 per night
Food in Cameron Highlands : $ 5.50 per meal
If the group is planning on arriving at Cameron Highlands before lunch time on
Friday and leave after lunch on Sunday, provided they have 3 meals per day
(breakfast, lunch and dinner). How much would each student have to pay for food and
lodging for the whole trip? [2]

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iv. The response for the trip was rather slow and the organizers had given an early-bird
promotion of 10% discount on the cost (transport, lodging and food) per person for
all the students. If the organizers had to absorb $70.80 as the early birds discount,
how many students managed to grab this early-bird promotion? [3]

v. If all the students (early birds and non-early birds) were required to pay two-thirds
of the total fare as a deposit for the trip, how much was collected? [2]

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b. A particular insurance company insures 19% of all Perth houses. Last year the company
paid $5.7 million to settle 5000 claims.

i. Calculate the average value of a claim. [1]

ii. Estimate the total number and the total value of house insurance claims for the
whole of Perth last year. [2]

iii. Estimate the number of houses in Perth if 1 house in 20 can be expected to submit an
insurance claim during a year to the nearest hundreds. [2]

iv. If the average house contains 2.65 people, estimate the population of Perth. [2]
[ TOTAL : 20 MARKS]

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QUESTION 3
a. While visiting the Royal Maldives Club in Hyderabad in 1991, Prince Charles was
given an unpaid bar bill for $2.36 which was incurred in 1899 by Sir Winston
Churchill. The average interest rate over the 92 years was 8% per annum.
i. Determine the amount to be repaid if simple interest is charged. [2 marks]
$19.73
ii. Determine the amount to be repaid if compound interest is charged. [2 marks]
$2804.77
b. Shane needs to borrow $15,000 from his uncle to buy a pizza joint business from his
friend. He only needs the money for three years. His uncle gave him a choice of three
different loan opportunities.
Loan A: Compound interest at 8.5% per year compounded quarterly.
Loan B: Compound interest at 8.5% per year compounded monthly.
Loan C : Simple interest at 8.5% per year.

i. Which is a better plan for Shane and how much would he have to pay at the end of 3
years, to the nearest dollar after 3 years? [4 marks]

Loan C is the best option for Shane as it is the cheapest compared to the other 2 plans.

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ii. Use the simple interest formula to determine the annual simple interest rate Shane
must receive if he wishes to earn $650 interest on $3000 invested for 30 months.
Answer to the nearest hundredths. [2 marks]
650 = 3000 x r x 2.5
100
r = 8.67% p.a.
650 = 3000 x r x 2.5
100
r = 8.67% p.a.
c. A $26 425 Perodua Viva can be purchased with a deposit of $7321.57 and 47
repayments of $385.67 with a forty-eighth repayment of $9909.00.
i. Determine the amount financed (borrowed). [1 mark]
$19 103.43
ii. What is the total of all the repayments? [1 mark]
$28 035.49
iii. Calculate the simple interest charged, SI. [1 mark]
$8 932.06
iv. Determine the interest rate, r, charged each year. [1 mark]
r = 11.69% p.a.
v. What increase in repayments would be necessary to buy the car with the same
deposit and 48 equal repayments? [2 marks]
$198.40
vi. A second bank offers financing at the rate of 9% simple interest per annum for 5
years. Determine the repayment amount per month and which financing scheme is
the cheaper option overall. [4 marks]
SI = 8596.54
Total = 19103.43 + 8596.54 = 27699.97
Repayment = 27699.97 / 60 = 461.67
The second financing scheme is cheaper.

[ TOTAL : 20 MARKS]
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QUESTION 4
a. The Brown Taxi company charges a flag fall of $3 and a rate of $2 per kilometre
travelled. They use the formula: F = 3 + 2d, where d is the distance travelled in
kilometres, to calculate the fare charged F (in dollars). For example, a taxi ride of 5 km
would cost $13.

i. Matthew took a Brown Taxi from Perth to his home, a distance of 25 km. Calculate
the fare Matthew was charged. [1 mark]

ii. Peta is charged $41 for catching a Brown Taxi home. What distance did she travel in
the taxi? [2]

The Orange Taxi company charge a flag fall of $6 and $1.50 per kilometre travelled.

iii. Write a formula for the fare charged by the Orange Taxi company in terms of d (the
distance travelled). [1]

iv. Madeline is deciding whether to catch a Brown Taxi or Orange Taxi to her home.
She wants to choose the cheaper company. She needs to travel 10 km. Which
company should she choose? Justify your answer with calculations. [2]

v. Determine the distance travelled that will result in the fares for the Orange and
Brown Taxis being equal. [2]

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vi. Emily wants to give her mother some advice about which taxi company to choose so
that her fare is always the cheapest. What advice should Emily give her mother?
[2]

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b. Jim makes cakes at home to be sold at the market. In order to do so, Jim incurs a cost of
$2 per cake, plus a fixed cost of $45 for each production run. Jim sells the cakes for
$6.50 each. If Jim produces x cakes in a production run, find:
i. The cost of producing x cakes. [1]

ii. The revenue gained in selling x cakes. [1]

iii. Find how many cakes Jim must produce and sell to make a profit. [2]

iv. If Jim’s profit is $P, find a formula for P in terms of x. [2]

v. Jim finds that his cost has increased to $2.50 per cake, and the fixed cost has
increased to $54 per production run. How much should he charge for each cake to
have a break-even point of 12 cakes? [2]

vi. Using these new costs, if Jim makes and sells 40 cakes, find his profit. [2]
[ TOTAL : 20 MARKS]

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QUESTION 5
a. The navigation system of a small plane has been programmed to cover the land area of
Queensland.

The following inequalities have been recoded within the system.

I : x≥0
II : y ≥ 4x – 20
III : y≥0
IV : y≤4 if 0 ≤ x ≤ 3
V : 36 ≥ 4x + 3y
VI : x≥3 if 4 ≤ y ≤ 8

i. Match the borders of Queensland A, B, C, D, E or F with the appropriate inequality

I, II, III, IV, V or VI. [6]
A - D -
B - E -
C - F -

iii. A prawn fishing boat is licenced to operate only in the Queensland section of the
Gulf of Carpentaria. The boat’s navigation system has to be programmed with linear
inequalities to remain within the Gulf of Carpentaria. One of the inequalities are
given below, list 3 other linear inequalities. x > 0 [3]

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b. A man sells his present business in order to start a small car-hire firm. He has
$144000 to spend on vehicles, so he decides to buy x large cars at $18 000 each and y
small cars at $12,000 each. He also decides he must start with at least 10 cars
altogether, and that he ought to have at least twice as many small cars as large cars.
i. Write five inequalities which satisfy the above conditions, simplifying where
possible. [5]

ii. Draw the inequalities from (a) on the graph and shade the region satisfying these
inequalities. [4]

iii. What is the maximum number of large cars he can buy, subject to these conditions?
[2]
[ TOTAL : 20 MARKS]

END OF QUESTIONS
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ADDITIONAL WORKING SPACE

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ADDITIONAL WORKING SPACE

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