Professional Documents
Culture Documents
TEST 2 - SKEMA
SEMESTER I
SESSION 2017/2018
PROGRAMME : BFF
DURATION : 1 HOUR
a) Table Q1(a) below shows the prices and weightage for different type of brick in
Malaysia, since 2014 to 2016. 2015 is the reference year having 101.0 as an index value.
Table Q1 (a)
Price RM/piece
Type of Brick 2014 2015 2016 Weightage
RM/piece RM/piece RM/piece
Common Clay Brick- 0.41 0.41 0.45 1
Pallet
Cement Sand Brick - 0.22 0.22 0.24 1.5
Pallet
Smooth Face Facing 1.18 1.20 1.31 2
Brick
𝐼2016 = 110.36
ii) Calculate the corresponding 2017 prices of brick from 2016 if 105.2 is the index
value in 2017.
(5 marks)
105.2
𝐶2017 = 𝐶2016 𝑥
110.36
105.2
𝐶12017 = 𝑅𝑀0.45 𝑥 = 𝑅𝑀0.43
110.36
105.2
𝐶22017 = 𝑅𝑀0.24 𝑥 = 𝑅𝑀0.23
110.36
105.2
𝐶32017 = 𝑅𝑀1.31 𝑥 = 𝑅𝑀1.25
110.36
b) IBS Batu Pahat Sdn. Bhd. win a project to install IBS Lightweight Panel in a government
school project. They are deciding whether to hire a skilled or semi-skilled local IBS
Lighweight Panel Installer. The estimated time to install the first IBS panel by skilled and
semi-skilled IBS Panel installer are 0.5 and 0.8 hour respectively. The information on the
common Labor Wage Rate (LWR) for both installer and their learning rate are shown in
table Q1 (b) below.
Table Q1 (b)
List of Labour for
LWR per day (RM) Learning Rate
Lightweight IBS Installer
Skilled, Local 89.50 0.70
Semi-Skilled, Local 74.00 0.95
Calculate:
i) The time for each installer takes to install the 20th panel
(4 marks)
𝑛
𝑍𝑢 = 𝐾𝑈
log 0.7
𝑆𝑘𝑖𝑙𝑙𝑒𝑑 𝑍20 = 0.5 𝑥 20 log 2
log 0.95
𝑆𝑒𝑚𝑖 𝑆𝑘𝑖𝑙𝑙𝑒𝑑 𝑍20 = 0.8 𝑥 20 log 2
ii) The total time required for each installer to install the first 20 panels
(4 marks)
𝑆𝑘𝑖𝑙𝑙𝑒𝑑 𝑇20 = 0.5 ∑20
𝑢=1 𝑈
−0.515
Skilled Installer because they need lesser time to install hence the total cost is also lower
QUESTION 2
1) A self-employed businessman, Mr. Yusof who is 20 years old today has just opened up a
retirement account at the CIMB Bank. He wishes to retire forty years from today. Mr.
Yusof determines that he needs an amount of RM50,000 per year after the retirement with
the first retirement funds withdrawn one year from the day he retires. CIMB Bank is willing
to open a retirement account that pays 6% interest, compounded annually for him. He
estimated that he will need the funds up his 25th birthday after the retirement.
a) Calculate:
i) The total amount of the funds needed after his retirement up to his 25th
birthday? (3 marks)
ii) How much must Mr. Yusof deposit into his account today so that he has
enough funds for his retirement? (3 marks)
i)
PWretire = $50,000 (PV annuity factor, N=25 and i =6%)
P = A (P/A, 25, 6%)
= RM50000 ( 12.7834)
= RM639,170 ……………………….(3 marks)
ii)
PWretire = RM639,170 ( PWretire = FW ) ………(1 marks)
Given: FW = RM639,170; N = 40; i = 6%
b) Determine the money Mr. Yusof needs to deposit each year in his retirement
account, starting one year from today.
(3 Marks)
(4 marks)
d) From the beginning of his first saving in his retirement account, Mr. Yusof also has
paid an additional of RM500 for every 6 months within 10 years to invest in his
children’s education saving.
ii) What is the equivalent total amount of the last payment (F), if these funds
are taken from the bank that has been returning 8% per year, compounded
quarterly?
(3 marks)
ii) n =20
F = A(F/A , 4.04%, 20)
= 500 ( 29.902)
= rm14951 ….........3M
iii) Calculate the grand total of his savings (retirement and children’s
education) in the 10th year
(5 marks)
N=20
So, RM14951 + RM111,282.1 = RM 126233.1 …..2M
TEST 2
Interest Table
Years, n Discrete Compounding; i = 6%
Interest Table
TEST 2
LIST OF FORMULA
4 p (1 + i) n