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Exam Paper for Business Mathematics in BBA (with
Answers)
PAPER # 1
**Section A: Multiple Choice Questions (50 marks)**
1
...
100 for 2 years at 10% per annum
compounded annually is
(a) Rs
...
20
(c) Rs
...
10
2
...
1000 for 3 months at 6% per annum is
(a) Rs
...
10
(c) Rs
...
20
3
...
100 due 2 years hence at 10% per annum
simple interest is
(a) Rs
...
95
(c) Rs
...
5
(d) Rs
...
The amount of Rs
...
1050
(b) Rs
...
1102
...
1125
5
...
100 for 4 months at 6% per annum is
(a) Rs
...
5
(b) Rs
...
1
...
1
...
Find the compound interest on Rs
...

7
...
5000 for 3 months at 12% per annum
...
Find the present worth of Rs
...

9
...
1000 for 2 years at 6% per annum compounded
annually
...
Find the simple interest on Rs
...

**Section C: Numerical Problems (30 marks)**
11
...
126 in 2 years
...

12
...
1000 for 3 months at 6% per annum is Rs
...

Find the time period
...
The present worth of Rs
...
82
...
Find the sum
...
The amount of Rs
...
1102
...
Find the interest
...
The simple interest on Rs
...

240
...

**Answers**
1
...
(c)
3
...
(c)
5
...
= Rs
...
= Rs
...
= Rs
...
= Rs
...
60
10
...
150
11
...
100
12
...
= Rs
...
= Rs
...
5
15
...
3000
PAPER # 2
**Section A: Multiple Choice Questions (50 Marks)**
1
...
100 for 2 years at 10% per annum is:

4

(a) Rs
...
21
(c) Rs
...
02
(d) Rs
...
The simple interest on Rs
...
360
(b) Rs
...
384
(d) Rs
...
The present value of Rs
...
75
...
76
...
78
...
80
...
The amount of Rs
...
1104
(b) Rs
...
20
(c) Rs
...
20
(d) Rs
...
40
5
...
1200 for 1 year at 12% per annum when
compounded half-yearly is:

5

(a) Rs
...
148
...
153
...
158
...
(c) Rs
...
02
2
...
360
3
...
76
...
(c) Rs
...
20
5
...
148
...
A sum of money becomes Rs
...
Find the sum
...
A sum of money is invested at 10% per annum simple interest
...
20 and that for the second year is Rs
...

8
...
100 due 3 years hence, compounded
annually at 8% per annum
...
Find the amount of Rs
...


6

10
...
1200 for 1 year at 12% per annum when
compounded half-yearly
...
Let the sum be Rs
...
Then,
x(1 + 8/100)4 = 2000
x = 1562
...
Let the sum be Rs
...
Then,
(x * 10 * 1)/100 = 20
x = 200
8
...
8
9
...
2
10
...
75
...
A business buys a machine for $10,000 and expects to sell it for $12,000
after 5 years
...
A company borrows $100,000 at an interest rate of 10% per annum
...
What is the size of each
installment?
* (a) $33,333
* (b) $35,000
* (c) $36,000
* (d) $37,500
* (e) $38,000
* 3
...
It is taxed at a rate of 20%
...
A company has a current ratio of 2:1
...
A company has a profit margin of 10%
...
A company borrows $100,000 at an interest rate of 10% per annum
...
What is the total amount
of interest paid over the life of the loan?

9

* 7
...
It is taxed at a rate of 20%
...
A company has a current ratio of 2:1
...
A company has a profit margin of 10%
...
A company has a return on equity (ROE) of 15%
...
Explain the different types of depreciation
...
Explain the different types of loans
...
Explain the different types of ratios used in financial analysis
...
Explain the different factors that affect a company's profit margin
...
Explain the different factors that affect a company's return on equity
(ROE)
...
(b) $7,000
* 2
...
(a) $20,000
* 4
...
(a) for every $100 of sales, it makes a profit of $10

10

* 6
...

* 7
...

* 8
...

PAPER # 4
**Business Mathematics Exam Paper**
**Instructions:**
- This exam consists of two sections: Section A (Multiple Choice Questions)
and Section B (Short Answer Questions)
...

- Show all your workings for Section B
...

**Section A: Multiple Choice Questions (20 points)**
1
...
If a product is sold for $80, and the cost price is $60, what is the profit
percentage?

11

a) 10%
b) 20%
c) 25%
d) 33
...
Solve for 'x': 3x - 7 = 17
...
Calculate the simple interest on a loan of $5,000 at an annual rate of 8%
for 3 years
...
A company's revenue is $10,000, and its expenses are $6,000
...
Solve the following system of linear equations:
2x + 3y = 12
4x - 2y = 6
**Answer:**
To solve this system of equations, we can use the method of substitution
or elimination
...

7
...

**Answer:**
The compound interest formula is:
A = P(1 + r/n)^(nt)
Where:

14

A = the final amount
P = principal amount
r = annual interest rate (decimal)
n = number of times interest is compounded per year
t = number of years
In this case:
P = $5,000
r = 6% = 0
...
06/1)^(1*3)
A = 5000(1 + 0
...
06)^3
A ≈ 5000(1
...
08
The compound interest is the final amount minus the principal:
Compound Interest = A - P
Compound Interest = $5,955
...
08

15

8
...
Find the quantity that minimizes the total
cost
...
5
So, the quantity that minimizes the total cost is 2
...


16

9
...

**Answer:**
The present value (PV) can be calculated using the formula:
PV = FV / (1 + r)^t
Where:
PV = Present Value
FV = Future Value
r = Discount Rate (as a decimal)
t = Number of Years
In this case:
FV = $1,000
r = 8% = 0
...
08)^5
PV = 1000 / (1
...
4693
PV ≈ $680
...
A business purchased a machine for $10,000
...
Calculate the annual depreciation using
the straight-line method

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