MATH 1009 Basic Mathematics for Business and Economics
Sample Test 1
For Marker’s Use Only
Group Name University No
Q1 Q2 Q3 Q4 Total
Tutorial groups:
1. Wed 10:30-11:20 2. Wed 11:30-12:20 3. Wed 12:30-13:20
4. Wed 13:30-14:20 5. Thu 11:30-12:20 6. Thu 12:30-13:20
7. Thu 14:30-15:20 8. Thu 15:30-16:20 9. Thu 16:30-17:20
Important Notes:
• Write down your name and university number above.
• Answer Questions 1 and 2 in the boxes below.
• Answer Questions 3 and 4 in the space below each question. Unless otherwise specified,
you are expected to explain your answers. Some marks will be allocated to the clarity of
presentation.
• Unless otherwise specified, numerical answers must be exact.
• The time allowed is 45 minutes. Each question carries 10 marks.
Answers to Question 1 and Question 2:
1(a) 1(b) 1(c) 1(d) 1(e)
2(a) 2(b) 2(c) 2(d) 2(e)
1. In this question you only need to give the answers. No explanation is needed.
Put your answers in the given boxes on Page 1.
(a) What is the domain of the function f (x) = log(4 − x2 )?
3
(b) What is the range of the function f (x) = ?
x−4
(c) If a firm has average cost function AC = 10Q−1 + 20 + 30Q, what is its fixed cost?
(d) If log x = 1.5, what is the value of x in surd form?
1 1 1
(e) Compute the infinite sum 1 − + − + ···.
3 9 27
2. In each multiple choice question below, some numbered choices are given and some are
correct (wordings like is and are do not indicate the singularity/plurality of the number
of correct choices). Answer the question by adding up the numbers of the correct choices.
In case all choices are wrong, answer 0. Explanation is not required. Put your answers
in the given boxes on Page 1.
(a) If P ∧ Q is a false statement, which of the following must be a true statement?
(1) (∼ P ) ∧ Q
(2) (∼ P ) ∨ Q
(4) (∼ P ) ∧ (∼ Q)
(8) (∼ P ) ∨ (∼ Q)
(b) Let x be a real number. Which of the following statements is true?
(1) If x2 < 0, then x2 + 1 < 1.
(2) If x2 < 0, then x2 + 1 > 1.
(4) The number x is negative if and only if 2x < 0.
(8) The number x is negative if and only if x2 > 0.
(c) Assuming all variables to be greater than 1, which of the following is correct?
(1) log x + log y = log(x + y)
(2) loga x + logb x = loga+b x
(4) ln ex = x
(8) eln x = x
(d) Which of the following must be true about graph of the function y = x2 − 4x − k,
where k is a positive constant?
(1) It is an upward-opening parabola.
(2) It has two different x-intercepts.
(4) Its y-intercept is negative.
(8) Its vertex has x-coordinate 2.
(e) Which of the following is convergent?
(1) 0.2 + 0.02 + 0.002 + 0.0002 + · · ·
(2) 1 − 1.1 + 1.12 − 1.13 + · · ·
1 1 1 1
(4) + + + + ···
10000 1000 100 10
1 1 1 1
(8) − + − + ···
2 4 8 16
3. Consider the system of equations
x1 + 3x2 + x3 = a
−x1 − 2x2 + x3 = b
3x1 + 7x2 − x3 = c
where a, b and c are real numbers. It is known that the system is consistent.
(a) Find an expression connecting the values of a, b and c.
(b) If it is further known that a = b = c − 2, find the values of a, b and c.
(c) Continuing (b), solve the system, using t to denote the value of x3 .
4. Alan starts working after graduating from the university. He earns $0.3 million during
the first year and his salary increases by 8% each year.
(In answering this question, monetary amounts should be rounded off to the nearest dollar
while interest rates should be rounded off to the nearest 0.01%.)
(a) What is the total amount Alan earns in the first 10 years after his graduation?
(b) Alan deposits 10% of his annual salary into the bank at the end of each year. The
interest rate is 5% per annum, compounded annually. How much will Alan have in
the bank at the end of the 10th year?
(c) Suppose Alan buys a flat worth $6 million at the end of the 10th year, using the
amount in (b) as the down payment. He borrows the rest from a bank with an
interest rate of 6% per annum, compounded monthly, with fixed-amount monthly
repayment in 20 years (the first instalment due one month after the loan is drawn).
(i) What is the APR of the loan?
(ii) Find the amount of monthly repayment by considering the present value of all
instalments at the time of the loan.
