- 10 Marks
QTB – May 2016 – L1 – SB – Q4b – Mathematics
This question covers estimating the value of a house with compound growth and determining a feasible tableau using the Least Cost Method in a transportation problem.
Question
i. A house built in Ikoyi increased in value by 8% in year 1, 25% in year 2, 35% in year 3, 43% in year 4, and 22% in year 5.
Required:
If the house cost N10,000,000 to build, estimate its value at the end of 5 years.
(3 marks)
ii. Calculate the average growth rate over the 5-year period.
(3 marks)
iii. A company’s Demand/Supply situations together with unit transportation costs are as shown below:
| Supply | Factory A | Factory B | Factory C | Demand |
|---|---|---|---|---|
| 400 | 3 | 6 | 7 | 400 |
| 550 | 7 | 5 | 3 | 550 |
| 500 | 5 | 4 | 6 | 500 |
| 700 | 3 | 2 | 4 | 700 |
| Total | 2150 |
Required:
Identify the initial feasible tableau using the Least Cost Method.
Find Related Questions by Tags, levels, etc.
- Tags: Cost Allocation, Growth Rate, Least Cost Method, Transportation Problem
- Level: Level 1
- Topic: Mathematics
- Series: MAY 2016