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1. Find the equation of the line that passing through the given point and having the

given slope:

(i) ( 4, 3) and slope -0.50 (ii) (8, 10) and slope 0.75 (iii) (3, 4) and slope

3

(iv) ( 5, 8) and slope 13.

2. Find the equation of the line passing through each of the given pair of points:

(i) (4, 7) and ( 4, 3) (ii) (4, 6) and (10, 6) (iii) (4, 6) and

(3, 7)

(iv) (3, 6) and (8, 6) .

3. A line segment fitted to points whose coordinates are in the order (Disposable

income, Consumption expenditures) for the United States in recent years passes

through (32, 30) and (57, 54) , where the numbers are in billions of dollars.

What is the slope of the segment and interpret it? From this result, identify of

MPC and MPS and interpret of them.

4. A publisher asks a printer for quotations on the cost of printing 1,500 and 2,500

copies of a book. The printer quotes $5,500 for 1,500 copies and $8,500 for 2,500

copies. Assume that cost, y is linearly related to x, the number of books printed.

a) Write the equation of the given line.

b) What is the cost of printing 3,500 copies?

5. A printer quotes the price of Taka 1400 for printing 200 copies of a report and

Taka 2900 for printing 500 copies. Assuming a linear relationship, what would be

the price for printing 800 copies?

6. The total cost, y, of producing x units is a linear function. Records show that an

one occasion 100 units were made at a total cost of $200, and an another

occasion, 150 units were made at a total cost $275.

(a) Write the linear equation for the total cost in terms of the number of units

produced.

(b) What is the total cost if 250 units are made?

7. An agency rents Cars for one day and charges $22 plus 20 cents per mile the Car

is driven.

(a) Write the equation for the cost of one day’s rental, y, in terms

of x, the number of miles driven.

(b) Interpret the slope and the y- intercept.

(c) What is the renter’s average cost per mile if a Car is driven

100 miles? 200 miles?

8. (a) What do you know about the total cost, variable cost, fixed cost, Marginal cost

1

and average cost. Interpret the equation y = 3x +2 for the above explanation.

(b) Define supply, demand, cost, revenue, profit functions and break-even.

9. A manufacturer of cassette tapes has a fixed cost of $60,000 and a variable cost

of $6 per cassette produced. Selling price is $9 per cassette.

a) Find the revenue, cost and profit functions.

b) What is the profit if 25,000 cassettes are made and sold?

c) What is the profit if 18,000 cassettes are made and sold?

d) At what number of cassettes made and sold will the manufacturer break-even?

e) What is the break-even dollar volume of sales (revenue)?

10. The total cost y, for x units of a certain product consists of fixed costs and the

variable cost. It is known that the total cost is $1200 for 100 units and $2700 for

400 units. (a) Find the linear relationship between x and y. (b) Find the slope of

the line and what does it indicate? (c) If the selling price is $7 per unit, find the

number of units that must be produced so that (i) there is neither profit nor loss,

(ii) there is a profit of $300 and (iii) there is a loss of $300.

11. Suppose the profit function for a good is linear, and the marginal profit is $5.

If the profit is $200 when 125 units are sold, write the equation of the profit

function.

12. A factory produces 200 bulbs for a total cost of $800 and 400 bulbs for a total

cost of $1200. Given that the cost curve is a straight line, find the equation of the

straight line and use it to find the cost of producing 300 bulbs.

13. The total cost y, for x units of a certain product consists of fixed costs and the

variable cost. It is known that the total cost is $6000 for 500 units and $9000 for

1000 units. (a) Find the linear relationship between x and y. (b) Find the slope of

the line and what does it indicate? (c) If the selling price is $8 per unit, find the

number of units that must be produced so that (i) there is neither profit nor loss,

(ii) there is a profit of $1000 and (iii) there is a loss of $300.

14. If the cost function is given by C ( x ) 300 2 x (dollars), and if the total revenue

function is given by R ( x) 9 x (dollars), find (i) the marginal cost (ii) the

marginal revenue and (iii) the marginal profit.

15. The salary of an employee in 2014 was $1200. In 2018, it will be $1350. Express

salary as a linear function of time and estimate his salary in 2023.

(ii) x 2 e x 5 xe x 0 (iii) 3 xe x x 2 e x 0

2

(i) 4 5 x x 4 6

2

(iv) e x 6 (v) 10 x 2

1

(i) 3 log b 2 log b 25 log b 20 log b x

2

(ii) ln x 2.315

(iii) log( x 1) log( x 1) 1

(iv) log b ( x 4) log b x log b 21

2 1

(v) log b 8 log b 9 log b 6 log b x

3 2

Mathematics of Finance

1. If $3000 is loaned for 4 months at a 14% annual rate, how much interest is

earned?

2. A loan of $4000 was repaid at the end of 8 months with a check for $4270. What

annual rate of interest was charged?

3. How many months will it take at 6% interest for $2,000 to grow to an amount of

$2,400?

5. Find the exact and ordinary interest on $2190 for 75 days at 12% interest.

8. Find the present value and the effective rate of $1000 due in 4 months at 12%

interest.

9. How long will it take for $10,000 to grow to $25,000 if it invested at 18%

compounded quarterly?

10. If $2500 were invested for 8 years at 8% compounded monthly then what will be

the compound interest?

11. At what interest rate compounded semi-annually will a sum of money would be

doubled in 10 years?

12. What is the value of an annuity at the end of 10 years if $1,000 is deposited every

6 months into an account earning 8% compounded semiannually? How much of

this value is interest?

3

13. How much should you deposit in an account paying 8% compounded quarterly in

order to receive quarterly payments of $1,000 for the next 4 years?

14. Which is the better investment and why: 9% compounded monthly or 9.3%

compounded annually?

15. How much should new parents invest now at 8% compounded semiannually to

have $80,000 toward their child’s college education in 17 years?

16. A man borrows $6,000 at 6% and promises to pay both principal amount and the

interest in 20 annual installments at the end of each year. What is the annual

payment necessary?

17. If you sell your car to someone for $2,400 and agree to finance it at 1% per

month on the unpaid balance, how much should you receive each month to

amortize the loan in 24 months? How much interest will you receive?

18. If you will need $20,000 for your children’s education, how much should you set

aside each quarter for 10 years to accumulate this amount at the rate of 6%

compounded quarterly?

19. A man retires at the age of 60 years and his employer gives him pension of $1200

for the rest of his life. Reckoning his expectation of life to be 13 years and that

interest is at 4%, what single sum is equivalent to this pension?

20. At what rate of interest will a sum of money be double in 8 years? The difference

between simple and compound interest on a sum for 3 years at 5% is $76.25. Find

the sum.

21. Find the amount of an ordinary annuity if payment of $600 is made at the end of

every 3 months for 3 years at the rate of 8% compounded quarterly.

1. Out of 1300 students of SEU, 500 played cricket, 350 played football, and 512

played table tennis; of the total 90 played both cricket and football, 152 played

football and table tennis, 90 played cricket and table tennis, and 60 played all the

three games.

(i) How many students did not play any game?

(ii) How many students played only one game?

2. A roads and highway construction firm has 33 bulldozer drivers, 22 crane drivers

and 35 cement-mixture drivers. Of the drivers 14 persons can drive both mixture

and bulldozer, 10 persons can both drive mixture and crane, 10 persons can drive

4

both bulldozer and crane and 4 persons can drive all the three machines.

Determine the total number of drivers of the firm.

3. A town has a total population of 75,000. Out of it 31,000 read the Daily Star and

24,000 read the Daily Observer while 4,500 read both the papers. Indicate how

many people read neither Daily Star nor Daily Observer.

Economics but not Business Mathematics. Find the number of students who have

taken Economics and Business Mathematics and also find those who have taken

Business Mathematics but not Economics.

5. 168 ladies work in a company. Among them 91 wear shari, 103 wear shalowar-kamiz

and 7 wear shirt-pant. 29 wear both shari and shalowar-kamiz, 4 wear both shalowar-

kamiz and shirt-pant.

(i) How many ladies wear only shari?

(ii) How many ladies wear only one type of dress?

6. From a committee of 12 people: (i) In how many ways can we choose a chairperson, a

vice-chairperson, a secretary, and a treasurer, assuming that one person cannot hold

more than one position? (ii) In how many ways can we choose a subcommittee of 4

people?

be formed. In how many ways can a 4 officer committee be formed so that it is

composed of (i) 4 junior officers? (ii) at least 2 junior officers?

8. Suppose 7 female and 5 male applicants have been successfully screened for 4

positions. In how many ways can the following compositions be selected?

(i) 2 female and 2 males (ii) 3 females and 1 male (iii) 4 females

(iv) 4 people regardless of sex (v) At least 3 females

and 2 wicket keepers. In how many different ways can a team be formed so that the

team contains (i) exactly 3 bowlers and 1 wicket keeper? (ii) at least 3 bowlers and

at least 1wicket keeper?

10. Serial numbers for a product are to be made using 2 letters followed by 2 digits

with no repeats. If the letters are to be taken from the first 9 letters of the alphabet and

the numbers are to be taken from the 10 digits. How many serial numbers are

possible?

Matrices and Its Applications

1. Solve the following systems of equations by Matrix Method.

5

2x y z 2 x y z 4 x yz 4

(i) x 2y z 1 (ii) 2x y z 3 (iii) 5 x y 7 z 20

3x y 2 z 9 x 2 y 3z 5 2 x y 3z 8

x yz 6 x yz 4 2 x y 3z 5

(iv) 4 x 2 y z 9 (v) 5 x y 7 z 25 (vi) x 2y z 6

3 x y z 4 2 x y 3z 8 3x y 2 z 8

and the rest at annual rate of 12%. At the end of a year, he received annual interest

of $9000. Using matrix method find out how much he deposited at 5%.

3. A man invested $30,000 partly in a bank fetching interest at the rate of 9% per

annum and the rest in a company fetching interest at rate of 18%.per annum. At the

end of a year, he received annual interest of $4500. Using matrix method find how

much money be invested in both the schemes.

per annum respectively. The total annual income is $4,800. The income from the

third investment is $600 more than the income from the second investment. Using

matrix algebra, determine the amount of each investment.

1. A Candy manufacturer has 130 pounds of chocolate covered cherries and 170

pounds of chocolate covered mints. He decides to sell them in the form of two

1 1

different mixtures. One mixture will contain cherries and mints and will

2 2

sell

1 2

$1.25 per pound and the other mixture will contain cherries and mints and

3 3

will sell $2 per pound. How many pounds of each mixture should the Candy

manufacturer prepare in order to maximize his sales revenue?

2. Graph the solution space described by the inequalities and also find the solution

algebraically: Maximize Z 8 x 6 y

Subject to

4 x 2 y 60

2 x 4 y 48

x 0, y 0.

3. Suppose that Lounge Chairs and Swivel Chairs are made using the equipment of two

departments: I and II. It requires one hour in each department to make a Lounge

Chair, but making a Swivel Chair takes one hour in Department I and two hours in

Department II. Department I has four hours of time available and II has six hours

available. Each Lounge Chair made and sold contributes $1 to profit, and each Swivel

6

Chair contributes $0.50 to profit. How many of each Chair should be made to

maximize the profit? What is the maximum profit?

is $4 for type A and $3 for type B. The time requirements of one belt of type A

and type B are in the ratio 2:3. The time available is 1000 minutes sufficient for

only 400 belts. Belt A requires a fancy buckle and only 200 fancy buckles are

available. Formulate above as a linear programming problem and solve it by

simplex method.

1. A company has examined its cost structure and revenue structure and has

determined that C the total cost and R the total revenue and x the number of units

product are related as: C 100 0.020 x 2 and R 4x. Find the production rate x

that will maximize profits of the company. Find that profit. Find also the profit

when x = 152 units.

48

C 5 3x 2

x

where x is the number of articles manufactured. Find the minimum value of C.

3. Suppose the total cost C(x) (in thousands of dollars) for manufacturing x sailboats per

year is given by the function

C(x) = 575 + 25x – 0.25x2, 0 x 50,

a) Find the marginal cost at a production level of x boats per year.

b) Find the marginal cost at a production level of 40 boats per year and interpret the

results.

c) Use the total cost function to find the exact cost of producing the 41 st boat and

discuss the relationship between this result and the marginal cost found in part (b).

4. Suppose the total sales S (in thousands of CD’s) for a compact disk are given by

90t 2

S (t ) 2

t 50

where t is the number of months since the release of the CD.

a) Find S (t ).

b) Find S(10) and S (10) . Write a brief verbal interpretation of these results.

c) Use the results from part (b) to estimate the total sales after 11 months.

5. A company manufactures and sells x television sets per month. The monthly cost and

price-demand equations are

7

C ( x ) 60,000 60 x

x

p 200 ; 0 x 10,000

50

Find the following for each month:

a) The maximum revenue.

b) The government has decided to tax the company $5 for each set produced. Taking

into account this additional cost, how many television sets should the company

manufacture each month in order to maximize its monthly profit? What is the

maximum monthly profit? How much should the company charge for the television

sets to realize the maximum monthly profit?

6. The total cost C for output x is given by C x 3 4 x 2 3 x 10. Find (i) Cost when

output is 4 units. (ii) Average cost when output is 10 units. (iii) Marginal cost when

output is 3 units.

Applications of Integral Calculus

of

producing a pair of shoes is $20. Find the total cost and the average cost function.

6

2. If the marginal revenue function for output is given by MR 5, find the

( x 2) 2

total revenue function and deduce the demand function.

3. The marginal cost of a firm given by MC 1.075 0.004 x, where x is the number

unit

production. Find the total cost and the average cost function of the firm if the cost of

producing 5 units is $81.5.

the income. Find the total consumption function, given that C(10)= 4.80

5. Pritom Co. Ltd. suffers a loss of $121.50 if one of its special products does not sell.

Marginal revenue is approximated by MR = 30 - 6x and marginal cost by

MC = - 24 + 3x. Determine the total profit function, the break-even points and the total

profit between break-even points.

6. Determine consumer surplus and producer surplus under pure competition for the

x2

demand function p 36 x 2 and supply function p 6 where p is the price and

4

x is the quantity.

3

7. If the marginal cost is given by MC = 3q 4

and fixed cost is $2, find the average cost

for 4 units of output.

8. If the marginal propensity to save is 1.5 0.2 x 2 , where x is the income. Find the

consumption function given that the consumption is $4.8 when income is $10.

8

9. Determine consumer surplus and producer surplus under pure competition for the

8 1

demand function p 2 and supply function p ( x 3) , where p is the price

x 1 2

and x is the quantity.

x 3

10. Assume that the marginal cost in dollar is given by MC ( x) 4 5 x e , where x

2

2

is the quantity produced. Find the total cost of production when x = 2, if fixed cost is $6.

11. The marginal cost of production of a firm is given as C (q ) 5 0.13q. Further the

marginal revenue is R (q ) 18. Also it is given that C (0) $120. Compute the total

profits.

1. The total cost of manufacturing three types of motor car is given by the following

table:

Labour (hrs) Materials (units) Sub-contracted (units)

Car A 40 100 50

Car B 80 150 80

Car C 100 250 100

Labour costs Rs. 20 per hour, units of material cost Rs.5 each and units of sub-

contracted work cost Rs.10 per unit. Find the total cost of manufacturing 3000, 2000

and 1000 vehicles of type A, B and C respectively.

2. Computer chips F, G and H are each made using three different kinds of transistors

A, B and C. The transistor requirements are shown in the following table:

Total transistor available

of F G H

transistor A 3 2 1 12

required B 2 7 4 34

C 2 1 2 14

How many of each kind chip could be made using all available transistors?

3. The total monthly variable cost of x tons output by a firm producing metal is

1 3

x 3 x 2 5 x (in dollars) and the fixed cost is $300 per month. Find the output

10

for minimum average cost.

4. A company finds that it can sell out a certain product that it produces, at the rate of

1 q

2

$2 per unit. It estimates the cost function of the product to be $ 1000 for q

2 50

9

units produced.

i) Find the expression for the total profit, if q units are produced and sold.

ii) Find the number of units produced that will maximize profit.

iii) What is the amount of this maximum profit?

iv) What would be the profit if 6000 units are produced?

where y is the price per unit and x is the number of units demanded. Determine the

price and the quantity for which the revenue is maximum.

6. A company suffers a loss of $1,000 if one of its products does not sell at all. The

marginal revenue and marginal cost functions for the product are given by

MR 50 4 x and MC 10 x . Determine the total profit function, break-even

points and the profit maximizing level of output.

10

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