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Fundamentals of Numeric Computing
CPAN 112
Final Test
Please read the following instruction very carefully before
answering any questions:
Please read all the questions very carefully.
Please provide your answers in the boxes below each question, and
do not change the text colour.
Your answer MUST show the solution procedure. There is no
credit if you only state the final answer.
Please highlight your final answer to each question.
Please keep the naming conventions requested in this lab and each
question.
Once you complete your lab, rename your word document file to
the (
CPAN112_FinalTest_FirstName_LastName
). Replace
FirstName and LastName with your first name and last name,
respectively.
It will be a 10%
mark deduction if you do not follow the guidelines
mentioned above.
1) Unique Furniture bought coffee tables for $399.00 less 23%, 10%, 5.5%. The
store's overhead expenses come out to be 30% of regular selling price and the
target profit is 55% of regular selling price. [20 points]
a. What is the maximum rate of markdown that the store can offer to break
even? [10 points]
399.00(1 – 0.23)(1 - 0.1)(1 – 0.055)
= 399.00(0.77)(0.9)(0.945)
= $261.30
Tables Bought for $261.30 Expenses = 30% of x = 0.3x Profit = 55% of x = 0.55x X = 261.30 + 0.3x + 0.55x
X – 0.3x - 0.55 x = 261.30
0.15x/0.15 = 261.30/0.15
X = 1742
Markdown = 1742 – 399 = 1343
Rate of Markdown = (Markdown/Selling Price) * 100
(1343/1742) * 100 = 77.1% Markdown Rate
b. What is the realized rate of markup based on cost if the items are sold at the
break-even price? [10 points]
Rate of Markup based on Cost = Markup/Cost
= Markup/261.30
2) Two debts must be paid today. One debt is $720 from two years ago and the
other was $610 from five months ago. Determine the single payment today that
would fully repay the debts if both debts accumulated simple interest at 1.15%
per annum. [20 points]
FV = PV(1 + I)
n
PV1 = 720
I = J/M
J = 1.15% or 0.0115
M = Annum = Year = 1
I = 0.0115
N1 = 2 x 1 = 2
FV1 = 720(1 + 0.0115)
2
FV1 = 736.65
PV2 = 610
N2 = 5 months = 5/12 = 5/12* 1 = 5/12
FV2 = 610(1 + 0.0115)
5/12
FV2 = 612.91
612.91 + 736.65 = 1349.56
The Single Payment that would have to be made today to repay all the Late
Debts would be $1349.56
3) What amount of money must have been invested on March 25, 2019, to amount
to $8400 on December 15, 2019, at 7.2% per annum? [20 points]A
FV = 8400
I = J/M
J = 7.2%/ 0.072
M = Annum = 1
I = 0.072
N = March 25, 2019, to Dec 15, 2019, = 265 Days
265/365 years
N = 1 x 265/365 = 265/365
PV = FV/(1 + I)
n
PV = 8400/(1 + 0.072)
265/365
PV = $7986.51
The amount that would have been invested on March 25 for it to cumulated into
$8400 would have been $7986.51
4) Zach must make a tuition payment of $8200 today. However, he has the option
to make three equal payments two months, four months, and eight months from
now. Determine the size of the equal payments if his money is compounded at
3.6% p.a. monthly. [20 points]
PV = 8200
I = J/M
J = 3.6%/ 0.036
M = Monthly = 12
N1 = 2/12 * 12 = 2
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