Free AIOU Solved Assignment Code 1349 Spring 2024
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| Title Name | Introduction to Business Mathematics (1349) |
| University | AIOU |
| Service Type | Solved Assignment (Soft copy/PDF) |
| Course | FA |
| Language | ENGLISH |
| Semester | 2024-2024 |
| Assignment Code | 1307/2020-2024 |
| Product | Assignment of MA 2024-2024 (AIOU) |
Course: Introduction to Business Mathematics (1349)
Semester: Spring, 2024
ASSIGNMENT No. 1
Q.1 a) A and B are in partnership. A gets as double as B’s profit. If A gets Rs.4600 as Profit, then find what will B get? What is the total profit and ratio between the profits of A and B?
A get Rs. 4600
A gets as double as B
B Gets 4600 = 2 = Rs. 2500
Total Profit = A + B = 4600 + 2500 = Rs. 6900
A: B = 4600: 2500 = 2: 1
- b) Divide Rs.880 in three parts so that 3 times the first, 5 times the second and 8 time the third are all mutually equal?
Let
First = 3x
Second = 5x
Third = 8x
Total = 3x +5x +8x = 16x
16x = 880
x = 55
First = 3 * 55 = 165
Second = 5 * 55 = 275
Third = 8 * 55 = 440
- c) Define commission rate. How it is different from wage? What is commission on Rs. 3000 @
This is the percentage or fixed payment associated with a certain amount of sale. For example, a commission could be 6% of sales, or $30 for each sale. A commission is a percentage of total sales as determined by the rate of commission. To find the commission on a sale, multiply the rate of commission by the total sales.
AIOU Solved Assignment Code 1349 Spring 2024
Q.2 a) One manufacturer offers a dishwasher at discount of 12 %,8% and 4%, while another manufacturer offered a comparable dishwasher for the same list price at discounts of 15%,5% and 4%. Which is the better buy?
Shop 1 Total =12 + 8 + 4 = 25%
Shop 2 Total =15 + 5 + 4 = 25%
Both give the same percentage of discount. So, both are better but according to percentage ratio shop 2 is better.
- b) An accidental motor cycles of cost Rs. 50,800 is sold at a loss of 47.5%. Find the loss and selling price.
Cost = 50800
Loss = 47.5%
Selling price = 50800 – 47.5%
= 26670
Loss = 50800 – 26670 = 25130
- c) Differentiate compound interest method from simple interest method. Write formula for computing accumulated amount by compound interest method.
Compound interest (or compounding interest) is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. Thought to have originated in 17th-century Italy, compound interest can be thought of as “interest on interest,” and will make a sum grow at a faster rate than simple interest, which is calculated only on the principal amount.
The rate at which compound interest accrues depends on the frequency of compounding, such that the higher the number of compounding periods, the greater the compound interest. Thus, the amount of compound interest accrued on $100 compounded at 10% annually will be lower than that on $100 compounded at 5% semiannually over the same time period. Because the interest-on-interest effect can generate increasingly positive returns based on the initial principal amount, it has sometimes been referred to as the “miracle of compound interest.”
- Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.
- Compound interest is calculated by multiplying the initial principal amount by one plus the annual interest rate raised to the number of compound periods minus one.
- Interest can be compounded on any given frequency schedule, from continuous to daily to annually.
- When calculating compound interest, the number of compounding periods makes a significant difference.
- Compound interest = total amount of principal and interest in future (or future value) less principal amount at present (or present value)
Interest is defined as the cost of borrowing money, as in the case of interest charged on a loan balance. Conversely, interest can also be the rate paid for money on deposit, as in the case of a certificate of deposit. Interest can be calculated in two ways: simple interest or compound interest.
- Simple interest is calculated on the principal, or original, amount of a loan.
- Compound interest is calculated on the principal amount and the accumulated interest of previous periods, and thus can be regarded as “interest on interest.”
There can be a big difference in the amount of interest payable on a loan if interest is calculated on a compound basis rather than on a simple basis. On the positive side, the magic of compounding can work to your advantage when it comes to your investments and can be a potent factor in wealth creation.
= [P (1 + i)n] – P
= P [(1 + i)n – 1]
Where:
P = principal
i = nominal annual interest rate in percentage terms
n = number of compounding periods
AIOU Solved Assignment 1 Code 1349 Spring 2024
Q.3 a) A man need to borrow Rs. 800,000 for two years. Which of the following loan is more advantageous to him:
- 4.1% simple interest, or
- 4% per annum compounded semi-annually.
Borrow = 800000
n = 2 year
Simple interest = 4.1%
Compound = 4%
Simple Interest = P * I * n
= 800000 * 4.1% * 2
= 65600
Compound Interest = P [(1 + i)n – 1]
= 800000[(1+4%)^2-1]
= 65280
- b) An annuity of Rs.5000 payable at the end of each year amounts to Rs.27082 in five years. Find the rate of interest of the annuity.
Ultimately, to calculate the interest rate in an annuity, the equation is expressed
A = P (1 + rt)
R = r * 100
5000 = r * 100
r = 50
A = 27082 (1+ 50*5)
A = 27082 (251)
A = 6797582
- c) What is meant by the following terms?
- Sum/Amount of an annuity.
An annuity is a series of equal payments in equal time periods. Usually, the time period is 1 year, which is why it is called an annuity, but the time period can be shorter, or even longer. These equal payments are called the periodic rent. The amount of the annuity is the sum of all payments.
- Present value of annuity
An annuity due is an annuity where the payments are made at the beginning of each time period; for an ordinary annuity, payments are made at the end of the time period. Most annuities are ordinary annuities. Analogous to the future value and present value of a dollar, which is the future value and present value of a lump-sum payment, the future value of an annuity is the value of equally spaced payments at some point in the future. The present value of an annuity is the present value of equally spaced payments in the future.
AIOU Solved Assignment 2 Code 1349 Spring 2024
Q.4 a) Qasim has deposited Rs. 10,000 at the end of each month for 20 years into an account which paid 3 % compounded monthly. How, much he did he have in the fund at the end of that time?
Deposit = 10000
Time = 20 year
Compound = 3%
Compound Interest = P [(1 + i)n – 1]
= 10000[(1+3%)^20-1]
= 8061.11
- b) A manufacturer wishes a markup of 25% on an item with cost of Rs.2700. What are the markup on the selling price?
Price = Item Cost / (1- Markup %)
Price = 2700 / (1-0.25)
Price = 2700 / 0.75
Price = 3600
- c) Define depreciation. Name two methods of calculating depreciation. Write formula to find the value of assets after n years.
In accounting terms, depreciation is defined as the reduction of recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible.
An example of fixed assets are buildings, furniture, office equipment, machinery etc.. A land is the only exception which cannot be depreciated as the value of land appreciates with time.
Depreciation allows a portion of the cost of a fixed asset to the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue generation transaction.
An example of Depreciation – If a delivery truck is purchased a company with a cost of Rs. 100,000 and the expected usage of the truck are 5 years, the business might depreciate the asset under depreciation expense as Rs. 20,000 every year for a period of 5 years.
There three methods commonly used to calculate depreciation. They are:
- Straight line method
- Unit of production method
- Double-declining balance method
Three main inputs are required to calculate depreciation:
- Useful life – this is the time period over which the organisation considers the fixed asset to be productive. Beyond its useful life, the fixed asset is no longer cost-effective to continue the operation of the asset.
- Salvage value – Post the useful life of the fixed asset, the company may consider selling it at a reduced amount. This is known as the salvage value of the asset.
- The cost of the asset – this includes taxes, shipping, and preparation/setup expenses.
This is the simplest method of all. It involves simple allocation of an even rate of depreciation every year over the useful life of the asset. The formula for straight line depreciation is:
Annual Depreciation expense = (Asset cost – Residual Value) / Useful life of the asset
AIOU Solved Assignment Code 1349 Autumn 2024
Q.5 a) The annual installment of the depreciation for a machine of value Rs.7,00,000 with its scrap value Rs. 60,000 at the end of 20 years. Also calculate rate of depreciation and value of the asset after 10 years.
Rate of depreciation = 1 – n√s/c
= 1-10√700000/60000
= 1-10*836.66*254.94
= 2049314.004
- b) An agent earned Rs. 52,000 commission at the rate of sealing a running departmental store. What was the selling price of the store?
Earned = 52000
Rate = 9/2%
Selling Price = 52000 / (9/2%)
= 1155556
- c) Define the terms successive discount. Give formula of computing discount rate for given quantity discount offer. What is discount rate in offer “Buy two get three”?
Successive Discount:
The formula for total discount in case of successive-discounts:
If the first discount is x% and 2nd discount is y% then,
Total discount = ( x + y – xy / 100 ) %
Discount refers to the condition of the price of a bond that is lower than the face value. The discount equals the difference between the price paid for and it’s par value.
Discount is a kind of reduction or deduction in the cost price of a product. It is mostly used in consumer transactions, where people are provided with discounts on various products. The discount rate is given in percentage.
