B.Com.

Question bank (Business Mathematics)

Formulae, Equations and graphs, Percentage, ratios and

proportions, Accuracy and Rounding.

1. What do you mean by Business Mathematics? How it helps in

decision making?

2. If 14:10=0.75:X, Find X

3. Find forth proportional to 16,40,42.

4. The ratio of number of girls and boys in the school is 4:3. There are
480 school girls, find number of boys in the school.

5. If Rs. 780 is divided in to three parts, proportional to ½ : 2/3 : ¾

then find the three parts.

6. What least number must be subtracted from each of the numbers

14, 17, 34, 42 so that the remainders may be proportional?

7. Solve the equation .

8. A man is five times as old as his son. After two years, the man will
be four times as old as his son. Find their present ages.

9. Explain Accuracy and rounding.

10. What do you mean by formulae?

Functions and their types- Linear, quadratic, polynomial,

exponential. Concept of limit, continuity of a function. Concept of
differentiation. Differentiation and continuity. Rules of
Differentiation. Maxima and Minima involving second order or
higher derivatives. Usage in business. The Marginal concept,
relation among Marginal, Average and total values in business
explained with differentiation.

1. What do you mean by function? Discuss various types of function.

2. Define limit with suitable example.

3. Explain the concept of differentiation.

4. Define following with the help of suitable examples:

 1) Limit 2) Function 3) Range 4) Domain 5) Co-domain 6) Image 7) Pre-
image.

5. What do you mean by function? Explain various types of functions with

suitable examples.

6. Let the demand be 40 units of a product when the price is Rs.

10 per unit and 20 units when price is Rs. 15 per unit. Find the
demand function assuming it to be linear. Also determine the
price when demand is 16 units.

7. Suppose the cost to produce a product is a linear function of

output. Rom the past record it is known that cost of producing
250 units of this product is Rs. 4000 and cost is Rs. 5000 for
350 units. Determine the cost function.

8. Define limit, continuity and function.

 x −3  4 − x2  2x −1
a)
lim   b) lim  2  lim
x →−2 2 x + x 3 3,x + 5
9. Solve the following question:  x − 9 
x →1
x →9
 
, c)

10. A firm has four plants and operates them as they are needed
to process available raw materials. Each plant has a fixed cost
of Rs. 3000 per month whether operating or not. In addition,
each plant if in operation, will incur an additional fixed cost of
Rs. 5000 per month. The raw material cost is fixed at Rs. 5 per
unit of output, and each plant can produce at most 10000 units
of output per month. Find the total cost function and examine
the points of discontinuity.

11. Find range of f from the following figure. Also find domain
and codomain of f if f is a function from A to B.

1 B

2 C

3 D
12. A shopkeeper charges Rs. 25 per item for purchasing 20 or less
items. He gives some rebate if more items are bought. If the
items bought are 50 or less, then a rebate of Rs. 1 per item
and for purchase of more than 50 items, rebate of Rs. 2 per
item is given. Find the cost function. What are the points at
which this is not continuous?

13. Discuss the rules of derivatives.

14. Find dy/dx for the following:

(i) y = (x −1)(x +1)

(iv) y = 4x 3
3 2
(ii) y = 2 − + 3 (v) y = 3x 5 − 2x −100
x x
12
2 (vi) y= + x 10
(iii) y = x
x

15. If then prove that (2y-x) dy/dx - y=0.

16. Explain the concept of differentiation.

17. Find the absolute maximum and minimum values of the

following functions in the interval specified. (i) f(x) = 2X2-
24X+107 in [1,3], (ii) f(x) = ((1/2)-X)2+X3 in [-2,2.5].

18. The demand function of a product is given by p = 200 -5X,

where p is the price per unit and x is the quantity demanded.
Find MR. Also, calculate the price at which MR is zero.

19. A firm can cell 1000 units of a certain commodity if the price is
Rs. 4 per unit and it can sell 1400 units at a price of Rs 2per
unit. Assuming that the demand function is linea , find the
demand function and revenue function.

20. Out of the following two functions, one is demand function and
other is supply function. Determine the demand and supply
function p = X = 2p – 10. Where p is price per unit
and x is quantity. Also determine the elasticities of demand
and supply at equilibrium price.

21. Let the demand function be aQ+bP-K=0, where a, b and k are

positive constants. Determine the point elasticity of demand
when MR is zero.
22. Given below is the revenue function R = 10000 –(X-20) 2 where
r is revenue and x is quantity sold. Find the revenue
maximizing level of output and the total revenue at this level
of output.

23. Find all the points of local maxima and minima and
corresponding maximum and minimum values of the function
 3  45 
f(x) =  − x 4 − 8x 3 −  x 4 +105 .
 4   2 

24. Thetotal profit y in rupees of a drug company from the

manufacturer and sale of x drug bottles is given by,

(a) How many drug bottles must the company sell to achieve
the maximum

profit?

(b) What is the profit per drug bottle when this maximum is
achieved?

25. The efficiency E of a small manufacturing concern depends on

the workers W10Eand  W2 
=  −is given by− 392
 + 30W . Find
 40 
the strength of the workers which give maximum efficiency.

R = 10000 − ( x − 20 )
2
26. Given below is the revenue function ,
where R is revenue and x is the quantity sold. Find the revenue
maximizing level of output and the total revenue at this level
of output.

27. Amanufacturer can sell x items at a price of Rs (300-x) each.

The cost of producing x( xitems
+ 10x + ) .
2
is12Rs . How
many items should the manufacturer sell to make maximum
profits. Also determine total profit.

28. Find
the elasticity of supply for supply function X = 2p 2+5,
where p = 3.

29. Thedemand X as a function of income y is given by 30X = 10

+2y. Obtain the expression for the income elasticity of demand
and its value when y = 250.
30. Suppose the demand and total cost functions of a monopolist
are p = 20-4X and TC = 4X +2 respectively, where p is price
and x is quantity. If the government imposes @ 20% of sales,
determine the total tax revenue that the government will be
able to collect.

31. Find
relative extrema (maxima and minima) for f(a,b)=2a 2+b2-
2ab+5a-3b+4.

32. A consumers utility function for two goods X and Y is:

U=XY+X+2X+2. It is known that the fixed prices of two goods
if p1 =Rs. 4and p2= Rs. 6. And the individual’s fixed income is
Rs. 130. Find the optimum levels of purchase of two goods.

33. A monopolist produces two commodities X and Y having the

following demand functions. X = 40-2p1-p2 and Y = 35- p1 –
p2, where p1 and p2 are their respective prices. If the total
cost function is C = X2+2Y2+10. Find the profit maximizing
level of output. Also find the value of p1 and p2 at which profit
is maximum.

34. What do you mean by Integration? Discuss various methods of

integration.

35. The MC of a commodity is MC = 3+ (3/3000) + e -0.03X where x

denotes the number of units. Find the cost of producing 100
units. It is given that e3=0.05.

36. The additional cost is lakhs of rupees of producing a motor car

is given by 6+4X2+1.5 e-X, where X is the quantity produced.
Determine the total cost of producing 5 motor cars if fixed cost
is Rs. 7 lakh.

37. The marginal revenue function of a firm is MR=20 e-X/10{1-

(X/10)}. Fin the corresponding average revenue function and
demand function.

38. Evaluate (i) , (ii) (iii) .

39. Evaluate (i) , (ii) , (iii)

.
Matrices and Determinants: Definitions and Terms, Basics of
Matrices (addition, subtraction, Multiplication etc).
Determinants and Properties. Cofactor, Adjoint and Inverse
of a Matrix. Solution of system of linear equation ( involving
not more than 3 variables)
1. What is matrix? Explain various types of matrices with suitable examples.

3 5 7
 3
2. Find the determinant of matrix A= 1 3  . Also find all minors and

2 1 5

Cofactors.

3. Explain Matrix Addition and Multiplication with examples?

4. Find Inverse of the following matrix A and show that AA-1=I= A-1A

15 3 4
5 0 4
 

2 1 3


5. There are two families A and B. Family A has 2 men, 3 women and one
child, while family B has 1 man, 1 woman and 2 children. Their individual
daily requirements are as follows:

Calories – Man -2400, Woman- 1900, Child -1800

Protein -- Man -55gm, Woman- 45 gm, Child -33 gm.

Present the above data in the form of matrices. Using matrix

multiplication, calculate the total daily requirements of calories and
proteins for each of the two families?

6. A manufacturer manufactures three items P, Q, R and sells them in two

markets I and II. Annual sales are given below:

Markets/ Items P Q R

I 6000 2000 3000

II 8000 4000 2000

If the sales price for each unit of P, Q, R is Rs. 4, Rs. 3 and Rs. 2
respectively, then find the total revenue of each market using matrices.
 1 2 4
 5 . Also find its determinant and all the
7. Find rank of the matrix 4 5


7 8 9

cofactors and minors.

8. A manufacturer produces three products A, B and C which

are sold in Greater Noida and Delhi. The annual sales of
these products are given below
. Products
.

A B C

Greater Noida 5000 7500 15000

Delhi 9000 12000 8700

If the sale price of the products A, B and C per unit be Rs.

200, 300 and 400 respectively, calculate total revenue
from each centre.

9. The equilibrium conditions for three commodities are given as under

x + y + z =6
x − y +z =2
2x + y − z =1

Using matrix inversion method, calculate the equilibrium price for each
commodity.

10. A company produces cars, jeeps and bikes which are sold in market I and
II. The annual sales of these products are given below:

Cars Jeeps Bikes

Market I 5000 7000 9000

Market II 2000 14000 7000

If sales prices of cars, jeeps and bikes per unit is Rs. 100000, Rs. 50000
and Rs. 20000 respectively. Calculate the total revenue in each market by
using matrix algebra.
11. Three shop keepers buy CD’s of different brands A, B and C. The first shop
keeper buys 2 CD’s of A, 5 CD’s of B, & CD’s of C. Second buys 4, 5, and 7
CD’s of A, B, and C respectively. Third buys 6, 8, 9 of A, B and C
respectively. If each CD of brand A costs Rs. 5, each CD of brand B costs
Rs. 10 and each CD of brand C costs Rs. 6. Find the total sum of money
spent individually by three friends for purchase of CD’s using matrix.

12. A company produces three products A, B and C which it sells in two

markets M1 and M2. Annual sales in units are given below:

. Units Sold
.
A B C

M1 50 20 10

M2 70 10 20

13. IF the sales price per unit of A, B and C are Rs. 12, Rs. 8 and Rs. 5
respectively and cost price per unit are Rs. 10, Rs. 5 aand Rs. 3
respectively. Determine total profit in each market using matrix algebra.

14. A firm has four plants and operates them as they are needed to process
available raw materials. Each plant has a fixed cost of Rs. 3000 per month
whether operating or not. In addition, each plant if in operation, will incur
an additional fixed cost of Rs. 5000 per month. The raw material cost is
fixed at Rs. 5 per unit of output, and each plant can produce at most
10000 units of output per month.

(i) Find the total cost function and (ii) examine the points of
discontinuity.

15. A manufacturing unit produces there different types of food articles. Food
type A contains 6 kg of flour 1.5kg of fat and 1.5 kg of sugar. Food type B
contains 6 kg of flour, 2 kg of fat and 1 kg of sugar. Food type contains 4.5
kg of flour, 3 kg of fat and 2.5 kg of sugar. Now due to changes in
consumer’s taste it has been decided to change the mix with the following
amendment (in kg)

Food Type

Content A B C
s
 Flour 0 +0.5 -0.5

Fat -1 0 +1

Sugar +1.5 -1 +0.5

Using matrix algebra find

(i)Find the matrix of product mix and for the new product mix.

(ii)If the manufacturing unit receives an order of 50 units of type A,

40units of food type B and 30 units of food type C then find the total
requirement of the ingredients.

(iii)If the unit has 700 kg of flour, 730 kg of fat and 800 kg of sugar in
stock then find how many units of each type of food can be produced?

16. A company is manufacturing two types of cycles for gents and ladies
separately which are assembled and finished in two workshops W1 and
W2. Each type takes 15 hrs and 10 hrs for assembly and 5 hrs and 2 hrs
for finishing in respective workshops. If the total numbers of hours
available are 400 and 120 in workshops W1 and W2 respectively, by using
matrix inverse or determinants, calculate the number of units of cycles
produced.

17. A firm uses three ingredients to manufacture two products A and B. the
cost (in Rs.) per kg of each ingredient is given by C= [5.0 12.5 15.0].
The requirement of each ingredient (in kgs) to produce one unit of each
product is shown in the following matrix:

A B

2 0 1 6
1 0 6 0
 
R= Find cost per unit of each product.

 3 0 4  0
 18. Solve the following set of equations using matrix

5 x +3 y +7 z = 4
3 x +6 y +2 z =9
7 x +2 y +11 z =5

Mathematics of Finance: Rate of Interest – nominal, effective and

continuous and their relationship. Compounding and discounting
of a sum using different rates. Types of annuities, like ordinary,
deferred, continuous, perpetual. Future and present values of
annuities with different interest rates.

1. What do you mean by annuity? Explain ordinary, deferred, continuous,

perpetual annuities.

2. What is future and present value of annuities?

3. What amount should be deposited annually so that after 16 years a person

receives Rs. 167160, if the interest rate is 15%.

4. The age of the son is 2 years. His father wants to get Rs. 200000 when his
son is 22 years old. He opens an account with a bank at 10% rate of
compound interest. What amount should he deposit at the end of every
month in this recurring account?

5. An entrepreneur purchases a machine on 1st Jan 2009 and agrees to pay

10 installments each of Rs. 12000 at the end of every year inclusive of
compound rate of 15%. Find the present value of machine.

6. In order to purchase a manufacturing unit, a person has taken a loan of

Rs. 1500000 from SBI at 12% rate of interest. If he repays the amount in
10 yearly installments then find the amount of installment.

7. A company intends to create a sinking fund to replace at the end of 20th

year assets costing Rs. 2500000. Calculate the amount to be retained out
of profit every year if the interest rate if 8% per year.

8. What do you understand by rate of interest? Discuss Nominal and Effective

rate of interest.
Mathematics of accounting: Depreciation of assets.
Depreciation and salvage value. Units of production, methods
of calculating depreciation.

1. What do you understand by depreciation?

2. What is salvage value?

Theory of Probability: Relevance of Probability Theory in

Business Decisions. Definition, Sample space, Permutation
and Combination, Rules of Probability. Conditional
Probability.
3. What is the probability that a leap year will have 53 Sundays?

4. A bag contains 6 white balls, 7 red balls and 5 black balls. Find the
probability that three balls are drawn at random is all white or black.

5. A doctor is to visit a patient. From the past experience, it is known that the
probability that he will come by train, bus, scooter or by taxi are 1/3, 1/5,
1/10, 2/5 respectively. The probabilities that he will late are ¼, 1/3, 1/12 if
he comes by train, bus, scooter respectively, but if he comes by taxi then
he will note be late. When he arrives, he is late. What is the probability
that he comes by train?

6. What is (1) probability and (2) conditional probability?

7. Discuss various approaches of probability with suitable examples.

8. Explain (i) sample space, (ii) event, (iii) compound events, (iv) mutually
exclusive events, (v) equally likely events, (vi) Dependent events, (vii)
independent events, (viii) random experiment, (ix) exhaustive event,
complementary event.

9. Explain addition and multiplication rule of probability.

10. Differentiate between permutation and combinations with suitable

examples.

11. From a group of 4 boys and 3 girls candidates are arranged at random one
after the other for an interview. Find the probability that boys and girls are
alternate.
12. A committee of 2 persons is to be selected from 5 women and 8 men.
What is the probability that atleast one of the selected person will be a
women?

13. A speaks truth in 75% cases and B in 80% of the cases. In what % of cases
they are likely to contradict each other?

14. A couple appear in an interview for two vacancies in the same post. The
probability of husband’s selection is 1/7 and that of wife’s selection is 1/5.
What is the probability that only one of them is selected?

15. In a factory, machine M1, M2, M3 manufactures 25%, 35% and 40% of the
total output. Out of their output 5%, 4% and 2% are defective items. An
item is drawn at random from the output and is found to be defective.
What is the probability that it is manufactured by machine (1) M1, (2) M2,
(3) M3.

16. How many different license plates are there that containing exactly three
English letters ?

17. 3 persons enters into a car of five seats. In how many ways can they
occupy the seats?

18. In how many ways can the letters of “Statistics” be arranged?

19. In how many ways a cricket eleven be chosen out of 15 players? How
many of them will always (i) include a particular player? (ii) Exclude a
particular player?