KWAME NKRUMAH UNIVERSITY

SCHOOL OF BUSINESS STUDIES

BEC 1760 -MATHEMATICAL ANALYSIS

FINAL EXAMINATION: OPEN DISTANCE LEARNING

1st MAY, 2024

TIME: 12:00 - 15:00

DURATION: 3 HOURS TOTAL MARKS: 100

INSTRUCTIONS TO CANDIDATES

—————————————————————————————————-

1. There are FIVE (5) questions in this paper, ATTEMPT ANY FOUR (4) questions.

2. Write your student number on the answer booklet(s) provided.

3. Write all your answer in the answer booklet(s) provided and clearly indicate the total
number of booklets used.

4. Show ALL your working clearly to earn FULL marks.

5. The number of marks awarded is shown in the brackets [ ] at the end of each question or
part question.

6. Calculators are ALLOWED in this examination.

DO NOT TURN THE PAGE UNTIL YOU ARE TOLD TO DO

SO.
This question paper consists of 5 printed pages

1
Q 1. (a) The net cash flow for two projects, A (fast food) and B (Stationary shop), is as
follows:
Year 0 1 2 3 4 5
Project A -420000 -5000 122000 130000 148000 150000
Project B -95000 -10000 -120000 200000 110000 -50000
(i) Use the net present value criterion to decide which project is the most profitable
if a discount rate of (i) 6% and (ii) 8% is used.

(ii) Estimate the IRR of each project. Which project would now be considered
more profitable?
R3 R3 26
R3
(b) Evaluate 1 (−x2 + 4x − 3) dx using each of the following values 1 x2 dx = 3
, 1 xdx =
R3
4, 1 dx = 2.

(c) An arithmetic progression has 3 as its first term. Also, the sum of the first 8 terms
is twice the sum of the first 5 terms. Find the common difference.

(d) Solve the quadratic equation 2x2 + 10x − 3 = 0 by the method of completing the
square.

[10, 5, 5, 5]

Q 2. (a) Mr. Siame invests K1, 000 at 10% p.a compounded annually and plans to hold this
investment for five years. How much will he have at the end of her holding period?

(b) The total cost of producing x articles is 45 x2 + 175x + 125 and the price at which
each article can be sold is 250 − 54 x. What should be the output for a maximum
profit. Calculate the profit.

(c) The price (P) of a product is given by:

P = 175 − 4Q

and the total cost of the product is

T C = 1980 + 2Q + 0.02Q2

Determine;

(i) the marginal revenue.

(ii) the marginal cost.

(iv) the quantity When the marginal revenue equals marginal cost.

2
    
1 1
(d) Represent the following sets A = −3, ∪ (1, ∞) and B = (−∞, −1) ∪ , 2 on
3 3
a number line. Hence, determine A ∩ B.

[4, 8, 8, 5]
R4
Q 3. (a) Consider a business development model given by f (x) = 4e8x−1 . Find 1
4e8x−1 dx.

(b) Find the sum of the geometric series

2 + 6 + 18 + 54 + . . .

where there are 6 terms in the series.

(c) Find an expression for the savings function if the marginal propensity to save is
given by
MPS = 0.4 − 0.1Y −1/2

and savings are zero when income is 100 .

 
1 2 −1
 
(d) Let A =  1 0 3 
 
 
1 1 −1
(i) Find the determinant of A.
 
− 43 1
4
6
4
 
(ii) Verify whether the matrix  1 0 −1  is the inverse matrix of A.
 
 
1 1 1
4 4
−2

[5, 5, 5, 10]

Q 4. (a) A firm borrows K6000 from the bank at 13% compounded semi-annually. If no
repayments are made, how much is owed after 4 years.

(b) The marginal cost function of a product is given as: MC = 1.075 − 0.004x, where
x is the output. Find the total and the average cost function of the firm if the cost
producing 5 units is 81.5.

(c) If A = {1, 2, 4, 8}, B = {1, 3, 5, 7}, C = {2, 4, 6, 8} and the universal set E =
{1, 2, 3, 4, 5, 6, 7, 8}. By using the sets above, show that:

(i) (A ∪ B)c = Ac ∩ B c

(ii) (A ∩ B)c = Ac ∪ B c

(iii) the powerset P (C)

3
 (iv) the cardinality of P (C)

(d) Use the appropriate rules of differentiation to find the first derivative f ′ (x) of the
function; f (x) = (x2 + 1) (x10 − 5).

[5, 5, 8, 7]

Q 5. (a) The cost of raw materials to produce plastic toys is given by the cost equation
C = 2x + 35, where x is the number of toys in hundreds. The total income (revenue)
from the sale of these toys is given by R = −x2 + 122x − 1965.

(i) Determine the profit equation (profit = revenue − cost ). Sketch the profit
function.

(ii) During the Christmas season, the owners of the company decide to manufacture
and donate as many toys as they can, without taking a loss (i.e., they break
even: profit or P = 0 ). How many toys will they produce for charity?

(b) Consider the total cost function given below

p
TC = 3Q − 1

Use the First Principle to find the Marginal Cost (MC) function.

(c) Show that √

x4 − x2 + x
= x3 − x + x−1/2
x
Hence find √
x4 − x 2 +
Z
x
dx
x
(d) Consider the following matrices
   
4 −1 6 0 3
A=  B= 
4 0 2 2 −2

Find AB and (BA)−1 if possible.

[10, 5, 5, 5]

END OF EXAMINATION
a(1−rn ) a(rn −1)
1. Sn = 1−r
or Sn = r−1

(r1 ×N P V2 )−(r2 ×N P V1 )
2. IRR = N P V2 −N P V1

4
 FV
3. P V = (1+r)t

4. Sn = 12 n(2a + (n − 1)d)
h i
1−(1+r)−t
5. V0 = A0 r
h i
(1+r)t −1
6. VAN U,t = A0 r

7. F V = P V (1 + rt)

8. F V = P V (1 + r)t