Econ1202 Semester 2 2008 Final Exam
THE UNIVERSITY OF NEW SOUTH WALES SCHOOL OF ECONOMICS ECON1202/2291 QUANTITATIVE MEHODS A FINAL EXAMINATION SESSION 2 2008
TIME ALLOWED - 3 HOURS
THIS PAPER IS WORTH 60% OF THE TOTAL SUBJECT MARK
Questions: 7 Students must attempt no more than 6 questions Marks per question: 10 Exam weighting: 60%.
Instructions to Students:
- Complete all of the details required on the front page of the examination booklet. - Make sure that you note the SIX(6) questions attempted on the front of your examination booklet - If Seven questions are attempted, the first SIX(6) will be marked. - You may use a non-programmable calculator - Graph paper will be provided. - Answers are to be written in ink. Pencils are permitted for graphing purposes. - The candidate may retain this paper.
Question 1:
a) A loan is to be repaid by a student. The student has debts of $10,000 to be paid at the end of the first year, $5,000 to be paid in 18 months and $3,000 to be paid in the 24th month. The student would prefer to pay the debts as follows. $1,000 now, followed by payments at the end of the 6th, 20th and 30th month. The payment at the end of the 6th month is half the size of the payment at the end of the 20th and 30th months. Find the value of the final repayment (using a focal date of the 30th month) if interest compounds monthly at 8%. (5 marks) b) i) For a car loan being repaid with fortnightly installments of $75, find the original loan size if the term of the loan is 5 years, interest is calculated daily at 9%. ii) If the holder of the loan wished to pay out the loan at the end of the 3rd year, how much would be outstanding? iii) In this case (loan paid out in 3 years) what is the total financial fee for this loan? (5 marks)
1
Question 2:
a) A firm has three categories of employees: juniors, seniors and supervisors. They earn $12, $18 and $24 per hour respectively. They have an output of 10, 16 and 22 units of product per hour respectively. The 250 employees of the plant have a total
TIME ALLOWED - 3 HOURS
THIS PAPER IS WORTH 60% OF THE TOTAL SUBJECT MARK
Questions: 7 Students must attempt no more than 6 questions Marks per question: 10 Exam weighting: 60%.
Instructions to Students:
- Complete all of the details required on the front page of the examination booklet. - Make sure that you note the SIX(6) questions attempted on the front of your examination booklet - If Seven questions are attempted, the first SIX(6) will be marked. - You may use a non-programmable calculator - Graph paper will be provided. - Answers are to be written in ink. Pencils are permitted for graphing purposes. - The candidate may retain this paper.
Question 1:
a) A loan is to be repaid by a student. The student has debts of $10,000 to be paid at the end of the first year, $5,000 to be paid in 18 months and $3,000 to be paid in the 24th month. The student would prefer to pay the debts as follows. $1,000 now, followed by payments at the end of the 6th, 20th and 30th month. The payment at the end of the 6th month is half the size of the payment at the end of the 20th and 30th months. Find the value of the final repayment (using a focal date of the 30th month) if interest compounds monthly at 8%. (5 marks) b) i) For a car loan being repaid with fortnightly installments of $75, find the original loan size if the term of the loan is 5 years, interest is calculated daily at 9%. ii) If the holder of the loan wished to pay out the loan at the end of the 3rd year, how much would be outstanding? iii) In this case (loan paid out in 3 years) what is the total financial fee for this loan? (5 marks)
1
Question 2:
a) A firm has three categories of employees: juniors, seniors and supervisors. They earn $12, $18 and $24 per hour respectively. They have an output of 10, 16 and 22 units of product per hour respectively. The 250 employees of the plant have a total