CAMS LEVEL I

FUNDAMENTALS OF BUSINESS MATHEMATICS

TUESDAY: 20 August 2024. Afternoon Paper. Time Allowed: 2 hours.

This paper consists of fifty (50) Multiple Choice Questions. Answer ALL questions by indicating the letter
(A, B, C or D) that represents the correct answer. Each question is allocated two (2) marks. Do NOT write anything
on this paper.

1. Round off 74.568 to the nearest tenth.

A. 74.6
B. 75.0
C. 75.51
D. 74.5 (2 marks)

2. Calculate 20 ÷ (8 + 2) - 6.
A. -5
B. -4

ke
C. 4

o.
i.c
D. 5 (2 marks)

op
.ch
w
w
3. The ratio of boys to girls in a class is 3:5. There are 40 students in the class. How many more girls than boys are

w
in the class?
A. 8
B. 10
C. 24
D. 25 (2 marks)

x
4. What type of a fraction is K /y?
A. Proper fraction
B. Improper fraction
C. Mixed fraction
D. Unknown fraction (2 marks)

5. Mary bought 6 trays of eggs. She accidentally fell and broke 15% of the eggs. How many eggs were left?
A. 5 eggs
B. 27 eggs
C. 150 eggs
D. 153 eggs (2 marks)

6. Which one of the following statements is a correct definition of a ratio?

A. A ratio is a comparison of two quantities by subtraction
B. A ratio is a comparison of two quantities by multiplication
C. A ratio is a comparison of two quantities by division
D. A ratio is a comparison of two quantities of two quantities by addition (2 marks)

CM14 Page 1
Out of 7
7. Which one of the following expressions is a rate?
A. 5:3
B. 60 miles per hour
C. 0.75
3
D. /4 (2 marks)

8. Convert 0.85 to percentage.

A. 8.5%
B. 85%
C. 0.085%
D. 0.85% (2 marks)

9. Factorise x2 + 5x + 6.
A. (x + 1) (x + 6)
B. (x - 2) (x - 3)
C. (x + 2) (x + 3)
D. (x - 3) (x + 2) (2 marks)

10. Simplify (2x + 3) (x - 4).

A. 2x2 - 8
B. 2x2 + 7x - 12
C. 2x2 - 11x - 12
D. 2x2 - 5x - 12 (2 marks)

11. In the expression 5x + 3, what is x called?

A. Constant
B. Coefficient
C. Variable
e
D. Term
.k (2 marks)
.co
12. Which one of the following inequalities represents x > 3 on a number line?
A. Open circle at 3 and shading to the right
pi

B. Closed circle at 3 and shading to the left

C. Open circle at 3 and shading to the left
ho

D. Closed circle at 3 and shading to the right (2 marks)

13. Which one of the following intersections is the graphical solution of the system of linear equations:
C

y = 2x + 1 and y = -x + 4?
A. Intersection at (1, 3)
B. Intersection at (2, 5)
C. Intersection at (3, 2)
D. Intersection at (1, 2) (2 marks)

14. Graph the inequality y ≤ 2x + 1, which region represents the solution?

A. The region above the line y = 2x + 1
B. The region below the line y = 2x + 1
C. The line y= 2x + 1 itself
D. The region to the left of the line y = 2x + 1 (2 marks)

15. Differentiate the following function with respect to x:

Y = 2x4 + 4x3 – 6x + 5
dy
A. /dx = 2/5x5 + x4 – 3x2 + 5x
dy
B. /dx = 8x3 - 12x2 - 6
dy
C. /dx = 1/2x3 + 4/3x3 – 6x2
dy
D. /dx = 2/3x3 + 2x2 -6 (2 marks)

CM14 Page 2
Out of 7
16. Calculate the area enclosed by the curve, y = 3x2 + 3x + 5 for the interval 1≤ x ≤ 4.
A. 7.5
B. 100.5
C. 108
D. 115.5 (2 marks)

17. Solve the inequality 2x - 10 ≥ 3x + 4.

A. x ≥ -14
B. x ≤ -14
C. x≤6
D. x ≥ -6 (2 marks)

18. _______________ is used to determine the gradient of a function.

A. Differentiation
B. Integration
C. Logarithm
D. Probability (2 marks)

19. Solve for x and y in the system of linear equations represented by 2 1 x = 5

1 3 y 6
A. x = 1, y = 2
B. x = 2, y = 1
C. x = 1.8, y = 1.4
D. x = 2, y = 2
(2 marks)

20. If A = 1 2 and A-1 = 1 4 -2

3 4 ∆ -3 1

ke
o.
i.c
What is ∆?

op
.ch
A. -10

w
w
B. 1

w
C. -1
D. -2 (2 marks)

21. If A = 1 2 , what is AT (The transpose of A)?

3 4

A. 1 3
2 4

B. 1 2
3 4

C. 2 1
4 3

D. 4 3
2 1 (2 marks)

22. Which one of the following points is a maximum of f (x) = -2x2 + 4x + 1?

A. x = -2
B. x=1
C. x=0
D. x=2 (2 marks)

CM14 Page 3
Out of 7
23. Given the matrix A = 5 3 find A-1.
4 2

A. ½ 2 -3
-4 5
1
B. /-2 -2 3
4 -5
1
C. /-2 2 -4
-3 5
1
D. /-2 2 -3
-4 5 (2 marks)

24. If a store sells a product with a margin of 25% and the cost price is Sh.2,000. What is the selling price?
A. Sh.2,400
B. Sh.2,666.6
C. Sh.2,500
D. Sh.2,600 (2 marks)

25. What will be the future value of Sh.3,000 invested for 5 years at an annual interest rate of 4% compounded
annually?
A. Sh.3,649.96
B. Sh.3,600
C. Sh.3,240
D. Sh.3,744 (2 marks)

e
26.
.k
How many years will it take for a principal of Sh.20,000 to earn Sh.6,000 as simple interest at an annual rate of
6%?
.co
A. 4.5 years
B. 5 years
pi

C. 6 years
D. 7 years (2 marks)
ho

27. An equipment is purchased for Sh.20,000 and depreciates over 5 years using straight line method. If the residual
value is Sh.2,000, what is the book value at the end of the third year?
C

A. Sh.9,200
B. Sh.12,000
C. Sh.8,000
D. Sh.14,000 (2 marks)

28. An asset appreciates from Sh.30,000 to Sh.36,300 in 2 years. What is the annual appreciation rate?
A. 11%
B. 10%
C. 10.5%
D. 21% (2 marks)

29. A trader imports goods worth Ksh.1,000,000 and freight charges of Ksh.250,000. Given the prevailing exchange
rate of 1 UK pound = Ksh.200. Calculate the total cost of the goods in UK dollars.
A. UK dollar 6,250
B. UK dollar 250,000,000
C. UK dollar 5,000
D. UK dollar 1,250 (2 marks)

30. If the compound interest on a certain sum of money for 2 years at 5% per annum is Sh.512.5. What is the
principal amount?
A. Sh.5,125
B. Sh.5,000
C. Sh.512.50
D. Sh.4,487.50 (2 marks)
CM14 Page 4
Out of 7
31. What will be the amount after 2 years if Sh.20,000 is invested at an annual rate of 8% compounded quarterly?
A. Sh.37,018.60
B. Sh.23,328
C. Sh.23,200
D. Sh.23,433.19 (2 marks)

32. Given that Sh.500,000 is invested at an interest rate of 6% per annum., what is the interest after 3 years?
A. Sh.60,000
B. Sh.90,000
C. Sh.180,000
D. Sh.270,000 (2 marks)

33. A computer was bought for Sh.150,000 and its value decreased to Sh.120,000 after 2 years. Calculate the
depreciation rate per year using straight line method.
A. 10%
B. 15%
C. 20%
D. 25% (2 marks)

34. A sales person earns a basic salary of Sh.15,000 per month plus a 10% commission on sales. Compute the total
sales for the month if the total earnings for the month amount to Sh.40,000.
A. Sh.190,000
B. Sh.400,000
C. Sh.250,000
D. Sh.300,000 (2 marks)

35. An individual earns an annual income of Sh.60,000. The graduated income tax scheme is as follows:

ke
10% on the first Sh.24,000

o.
i.c
25% on the next Sh.8,333

op
30% on the remaining amount

.ch
w
The individual is also entitled to a tax relief of Sh.1,200. What is the total income payable?

w
w
A. Sh.13,983.35
B. Sh.11,583.35
C. Sh.18,000
D. Sh.12,783.35 (2 marks)

36. An employee earns Sh.150 per hour for the first 40 hours and Sh.225 per hour for overtime. If he worked for 45
hours a week, what is his total earnings?
A. Sh.6,000
B. Sh.10,125
C. Sh.7,125
D. Sh.6,750 (2 marks)

37. The length represented by class limits on the x-axis and class frequency on the y-axis is called _____________.
A. frequency curve
B. frequency line
C. histogram
D. ogive curve (2 marks)

38. The ogive curve is represented by __________ along the x-axis and _____________ along the y-axis respectively.
A. cumulative frequency, upper class limit
B. classes, class frequency
C. upper class boundaries, cumulative frequency
D. midpoint, cumulative frequencies (2 marks)

CM14 Page 5
Out of 7
Use the following information to answer Question 39 to Question 41:
The annual profit earned in 32 companies are tabled below:

Profits Sh. “000” Number of companies

16 – 25 3
26 – 35 4
36 – 45 8
46 – 55 10
56 – 65 5
66 – 75 2

39. What is the arithmetic mean profit?

A. 45.5
B. 50
C. 46.5
D. 42.5 (2 marks)

40. What is the modal profit?

A. 48.857
B. 48.571
C. 48.071
D. 48.357 (2 marks)

41. What is the median profit?

A. 50.5
B. 47

e
C. 46.5 .k
D. 46.8 (2 marks)
.co

Use the following data to answer Question 42 and Question 43:

12, 13, 14, 15.
pi

42. Calculate the variance for the data.

ho

A. 1.1
B. 1.25
C

C. 5
D. 13.5 (2 marks)

43. Calculate the standard deviation.

A. 1.12
B. 1.25
C. 5
D. 13.5 (2 marks)

44. A box contains 8 black balls and 5 white balls. If two balls are drawn at random without replacement, what is the
probability that both balls are black?
8
A. /13
14
B. /39
56
C. /39
40
D. /143 (2 marks)

CM14 Page 6
Out of 7
Use the following data to answer Question 45 to Question 47:
A tabulation of motor vehicles sold in a car bazaar in terms of their sources and by trader is given below:

Trader A Trader B
Imports 320 400
Exports 240 390

A motor vehicle is selected at random. What is the probability that the motor vehicle selected is:
45. An import or by trader B.
A. 0.30
B. 0.59
C. 0.77
D. 0.82 (2 marks)

46. An export given that its by trader A.

A. 0.07
B. 0.20
C. 0.43
D. 0.70 (2 marks)

47. An import from trader A.

A. 0.24
B. 0.53
C. 0.70
D. 0.94 (2 marks)

48. A product cost Sh.2,000. If it is sold for Sh.3,000. What is the mark-up percentage?

ke
o.
A. 331/3%

i.c
op
B. 25%

.ch
C. 50%

w
w
D. 662/3% (2 marks)

w
49. What is the probability of rolling a 3 or a 4 on a fair six-sided dice?
7
A. /6
1
B. /3
1
C. /36
11
D. /36 (2 marks)

50. Conditional probability refers to __________________.

A. the probability of two mutually exclusive events
B. the probability of a simple event
C. the probability of an event given that another event has occurred
D. the probability of an independent event (2 marks)

……………………………………………………………………………………

CM14 Page 7
Out of 7
 CAMS LEVEL I

FUNDAMENTALS OF BUSINESS MATHEMATICS

TUESDAY: 23 April 2024. Afternoon Paper. Time Allowed: 2 hours.

This paper is made up of fifty (50) Multiple Choice Questions. Answer ALL questions by indicating the letter
(A, B, C or D) that represents the correct answer. Each question is allocated two (2) marks. Do NOT write anything
on this paper.

1. Three numbers are in the ratio of 2:3:5. If the sum of the numbers is 150. Find the smallest number.
A. 30
B. 45
C. 75
D. 100 (2 marks)

2. When 0.45 is written in its simplest form, the sum of the numerator and the denominator is __________.
A. 9
B. 11

ke
C. 20

o.
i.c
D. 29 (2 marks)

op
.ch
w
3. What is 0.00652445 to 5 significant figures?

w
w
A. 0.00652
B. 0.0065245
C. 0.0065244
D. 0.0065 (2 marks)

4. If x: y = 3:4; find the value of (3x + 4y): (x + 3y).

A. 3:5
B. 5:3
C. 4:3
D. 3:4 (2 marks)

5. What is the derivative of f(x) = 5x3 – 2x2 + 4x + 1?

A. 15x2 – 4x + 4
B. 15x2 – 4x + 1
C. 10x2 – 4x + 4
D. 10x2 – 4x +1 (2 marks)

6. What is the equation of a straight line passing through the following points (-1, -1) and (-4, -7).
A. y = 3 + 6x
B. y= 2x + 1
C. y = -x + -1
D. y = -4x -7 (2 marks)

7. Calculate the gradient of a straight line passing through the following points; (-1, -1) and (0, 2).
A. 3
B. -1
C. -3
D. 2 (2 marks)

CM14 Page 1
Out of 9
8. Calculate the y intercept of the straight line, 6x = -2y + 1.
A. 1
B. ½
C. 3
D. 6 (2 marks)

9. The manager of a motor cycle shop has found out that at a price of p = 150 – 0.25q per motor cycle q motor cycles
will be sold.

Find the number of motor cycle sales that leads to maximum revenue.
A. 300
B. 3000
C. 150
D. 600 (2 marks)

10. Determine the minimum value of, y = 4x2 + 4x + 5.

A. x = 0.5
B. x = -0.5
C. x=2
D. x = -2 (2 marks)

11. Factorise y2 + 15y + 56.

A. (y + 7) (y +8)
B. (y - 7) (y -8)
C. (y - 7) (y +8)
D. (y + 7) (y -8)
(2 marks)
12. Evaluate the integral (4x3 + 2x) dx.
e
.k
A. 2x4 + x + c
B. x4 + x + c
.co
C. x4 + x2
D. x4 + x2 + c (2 marks)
pi

13. Find the solution to inequality –y + 9 ≥ 3.

ho

A. y ≤ -3
B. y ≥ -3
y ≤ -6
C

C.
D. y ≥ -6 (2 marks)

14. Solve the compound inequality 2 < 3x – 4 ≤ 8.

A. -2 < x ≤ 4
B. -2 ≤ x < 4
C. 2<x≤4
D. 2≤x<4 (2 marks)

15. Huyu Ndale an employee in Hawa Limited is paid based on fixed salary and a commission. The fixed salary is
Sh.7,000 per month. In a certain month, Huyu sold goods worth Sh.10,000 where commission is 15% on sales
above Sh.5,000.
Determine his total earning in that month.
A. Sh.5,750
B. Sh.7,750
C. Sh.8,500
D. Sh.12,000 (2 marks)

16. How much should I put in my savings account now if I want Sh.50,000 to purchase a machine in two years’ time?
Assume the rate of interest is 9% compounded monthly.
A. Sh.42,084
B. Sh.45,871.56
C. Sh.41,791.57
D. Sh.42,372.88 (2 marks)

CM14 Page 2
Out of 9
17. I currently have Sh.30,000 but I require Sh.50,000 in three years’ time. What rate of compound interest payable
annually must I receive on the Sh.30,000 to make this possible?
A. 66.67%
B. 44.44%
C. 22.22%
D. 18.56% (2 marks)

18. At the beginning of a year, the population of a small village is 8,400. If the annual rise in population is 12%.
Find the population at the end of the year.
A. 8,520
B. 9,408
C. 8,412
D. 9,600 (2 marks)

19. On selling an article for Sh.24,000, a trader makes a loss of 4% on the cost price. In order to make a profit of 10%
on the cost price, what must be the selling price of that article?
A. Sh.26,400
B. Sh.27,300
C. Sh.27,500
D. Sh.28,000 (2 marks)

20. A product has a markup of 40% and selling price is Sh.1,400. What is the cost price?
A. Sh.800
B. Sh.900
C. Sh.1,000
D. Sh.1,100 (2 marks)

ke
21. If an item is sold for Sh.2,000 with a 25% margin, what is its cost price?

o.
i.c
A. Sh.1,400

op
.ch
B. Sh.1,500

w
C. Sh.1,600

w
w
D. Sh.1,700 (2 marks)

22. A business exported goods worth Ksh.5,600,000 to USA. The prevailing exchange rate was 1 USD = Ksh.140.

Calculate the value of the goods in USD.

A. USD 40,000
B. USD 400,000
C. USD 78.400
D. USD 784,000 (2 marks)

23. A trader imported apples from South Africa at a cost of 5,000 South Africa Rands. The transport cost was 10% of
the value of the apples in South Africa Rands.

Determine the cost of the apples in Kenya Shillings if 1 South Africa Rand = Ksh.28.
A. Sh.5,500
B. Sh.140,000
C. Sh.154,000
D. Sh.196.43 (2 marks)

24. A sampling method where all units in a distribution have an equal chance of being included in a sample is referred
to as _____________.
A. Convenience sampling
B. Purposive sampling
C. Snowball sampling
D. Simple random sampling (2 marks)

CM14 Page 3
Out of 9
25. A manufacture sells his products to a distributor at a markup of 25%. The distributor sells the products to a
wholesaler at Sh.1,200,000 at a markup of 20%.

Calculate the cost of manufacturing the product.

A. Sh.240,000
B. Sh.800,000
C. Sh.960,000
D. Sh.1,000,000 (2 marks)

26. An employee earns a taxable monthly income of Sh.45,000. If the tax rate is 10% for the first Sh.15,000, 15% for
the next Sh.10,000 and 25% for any amount above Sh.25,000. The employee contributes Sh.1,200 per month for
NHIF.
Calculate the net income after tax.
A. Sh.9,200
B. Sh.33,750
C. Sh.35,800
D. Sh.38,000 (2 marks)

27. Find the inverse of A = 3 -1

-5 2
A. 2 1
5 3

B. 3 1
5 2

e
C. 2 -5
.k
-1 3
.co

D. 3 1
pi

5 2 (2 marks)
ho

Use the information to answer questions 28 to 31.

C

A researcher has collected the following data 3, 5, 12, 3 and 2. The mean of the sample is 5.
28. Determine the variance.
A. 4.062
B. 13.2
C. 16.5
D. 66 (2 marks)

29. Determine the standard deviation.

A. 3.633
B. 4.062
C. 8.944
D. 13.2 (2 marks)

30. Determine the range.

A. 1
B. 2
C. 10
D. 12 (2 marks)

31. Determine the interquartile range.

A. 1
B. 2
C. 10
D. 12 (2 marks)
CM14 Page 4
Out of 9
32. Which sampling method involves dividing the population into sub groups and then randomly selecting from the
subgroups?
A. Cluster sampling
B. Simple random sampling
C. Stratified sampling
D. Systematic sampling (2 marks)

33. If matrix R = 2 1
3 4

What is the transpose of matrix R?

A. 2 3
1 4

2 1
B. 3 4

4 3
C.
1 2

3 4
D. 2 1 (2 marks)

34. What is the median of the following set of scores:

ke
o.
i.c
18, 6, 12, 10, 14

op
.ch
A. 10

w
w
B. 14

w
C. 18
D. 12 (2 marks)

Use the data to answer question 35 to question 38.

The table below shows the distribution of monthly salaries of 300 employees.

Monthly salary Sh.“000” Number of employees

5 -10 16
10 - 15 24
15 - 20 58
20 - 25 100
25 - 30 42
30 - 35 30
35 - 40 20
40 - 45 10

35. Half of the employees earn a monthly salary of how much or less.
A. Sh.22,600
B. Sh.20,000
C. Sh.22,500
D. Sh.25,000 (2 marks)

36. About 40% of the employees earn more than what amount?
A. Sh.21,100
B. Sh.23,500
C. Sh.24,100
D. Sh.25,000 (2 marks)

CM14 Page 5
Out of 9
37. Compute the mean monthly salary for the employees.
A. Sh.20,000
B. Sh.22,500
C. Sh.23,300
D. Sh.22,600 (2 marks)

38. Which measure of central tendency is most affected by the outliers?

A. Mode
B. Median
C. Mean
D. Variance (2 marks)

39. The average monthly production of a factory for the first 8 months is 2,500 units and for the next 4 months, the
production is 1,200 units. The average monthly production of the year will be?
A. 2,067
B. 1,850
C. 308
D. 6,125 (2 marks)

40. Which of the following is NOT a qualitative variable?

A. The life of an automobile battery estimated at 42 months
B. A student religious affiliation
C. The country of origin for employees attending a training
D. The type of car owned by members of a club (2 marks)

41. Suppose we count the number of students attending a football match and report how many are boys and how
many are girls.

e
What type of measurement is this?
.k
A. Interval
.co
B. Nominal
C. Ratio
D. Ordinal (2 marks)
pi

42. What is the level of measurement for students on the first statistics test?
ho

A. Nominal
B. Interval
C

C. Ratio
D. Ordinal (2 marks)

Use the data to answer question 43 to question 44.

Below is a frequency distribution:

Selling price (Sh.“000”) Frequency
15 – 17 8
18 – 20 23
21 – 23 17

43. What are the coordinates for the first class for a frequency polygon?
A. (15, 8)
B. (17, 8)
C. (16, 8)
D. (16.5, 8) (2 marks)

44. What is the class size for the second class?

A. 2
B. 18
C. 20
D. 3 (2 marks)

CM14 Page 6
Out of 9
Use the table below to answer question 45 to question 47.

Second Event First Event

A1 A2 A3
B1 2 1 3
B2 1 2 1

45. Determine p(A1)

1
A. /3
1
B. /4
3
C. /10
1
D. /10 (2 marks)

46. Determine p(B1/A2).

1
A. /3
1
B. /10
1
C. /6
1
D. /2 (2 marks)

47. Determine p (B2 and A3).

1
A. /4
1
B. /10
1
C. /2
4
/5

ke
D. (2 marks)

o.
i.c
op
.ch
48. Solve the following experimental equation for x:

w
w
16 –x + 2 = 8

w
A. 5
B. 2.75
C. -2.75
D. 1.25 (2 marks)

49. Using the property of logarithms, write the following as a single logarithm:
Loga x + Loga (x – 1).
A. Loga x (x – 1)
B. Loga x/x – 1
C. Loga x
Loga (x- 1)
D. Loga x – Loga (x- 1) (2 marks)

50. What is the primary purpose of a contingency table?

A. Analysing relationship between categorical variable
B. Display trends in time series data
C. Representing numerical data
D. Summarising continuous data (2 marks)

……………………………………………………………………

CM14 Page 7
Out of 9
 CAMS LEVEL I

FUNDAMENTALS OF BUSINESS MATHEMATICS

TUESDAY: 5 December 2023. Afternoon Paper. Time Allowed: 2 hours.

This paper is made up of fifty (50) Multiple Choice Questions. Answer ALL questions by indicating the letter
(A, B, C or D) that represents the correct answer. Each question is allocated two (2) marks.

1. What per cent of 80 is 12?

A. 6.67%
B. 66.7%
C. 15%
D. 9.6% (2 marks)

2. Convert the decimal number 3.98 to a percentage.

A. 3.98%
B. 0.0398%

e
C. 39.8% .k
D. 398% (2 marks)
.co
3. Convert 75.20% into a decimal number.
A. 0.752
B. 7.52
pi

C. 75.2
D. 0.0752 (2 marks)
ho

4. Convert 51/4% to a fraction in lowest terms?

C

21
A. /4
21
B. /400
19
C. /40
52
D. /5 (2 marks)

5. Write the ratio 0.08:0.12 as a fraction in lowest terms.

2
A. /3
3
B. /2
1
C. /15
20
D. /3 (2 marks)

2
6. Convert the ratio /3 : 4/9 into a fraction.
6
A. /1
2
B. /3
1
C. /6
3
D. /2 (2 marks)

CM14 Page 1
Out of 7
7. Assume the figures below are proportional. Find the value of x.

9 12

6 x
A. 4.5
B. 8
C. 18
D. 36 (2 marks)

8. Round off 7,510 to the nearest thousand.

A. 7,500
B. 7,600
C. 7,000
D. 8,000 (2 marks)

9. A ratio equivalent to 3:8 is.

A. 3:11
B. 6:24
C. 9:24
D. 18:40 (2 marks)

10. Two numbers are in the ratio 7:9. If the sum of the numbers is 112 then the larger number is.
A. 49

ke
B. 42

o.
i.c
C. 63

op
.ch
D. 72 (2 marks)

w
w
w
11. The ratio of 1.5m to 10cm is.
A. 1:5
B. 15:10
C. 10:15
D. 15:1 (2 marks)

12. The length and width of a rectangle are in the ratio 3:2. If the width of the rectangle is 28cm, then the length of the
rectangle is?
A. 18
B. 42
C. 70
D. 56 (2 marks)

13. Three business partners, Mary, John and Peter share profits in the ratio of 3:3:4 respectively. If Peter received
Sh.90,000. How much was the profit earned?
A. Sh.36,000
B. Sh.54,000
C. Sh.225,000
D. Sh.200,000 (2 marks)

14. Jane saves 2/5 of her salary in a SACCO every month. How much will she have saved in 9 months if she earns a
monthly salary of Sh.40,000.
A. Sh.16,000
B. Sh.24,000
C. Sh.144,000
D. Sh.214,000 (2 marks)

CM14 Page 2
Out of 7
15. Find the indefinite integral ∫(2.7q2 – 18q + 15)dq
A. 0.9q3 – 9q2 + 15q + k
B. 5.4q – 18
C. 0.9q3 – 9q2 + 15q
D. 5.4q3 – 18q2 + 15q + k (2 marks)

16. Solve the following inequality19 ≥ 4 – 5X

A. X ≤ -3
B. X ≥ -4.6
C. X ≥ -3
D. X ≤ 4.6 (2 marks)

17. The transpose of a 2 X 3 matrix is.

A. Square matrix
B. Identity matrix
C. Inverse matrix
D. 3 X 2 matrix (2 marks)

18. Given that: matrix A = 3 2 B= 5 8 . Find AB

6 9 1 3
17 30
A.
39 75

B. 17 30
9 75

17 39
e
C.
.k
30 75
.co

17 30
D.
pi

39 25
(2 marks)
ho

19. Factorise 12x2 – 20x + 3

A. (2x + 3) (6x – 1)
C

B. (2x – 3) (6x + 1)
C. (2x + 3) (6x + 1)
D. (2x – 3) (6x – 1) (2 marks)

20. Given that: k = 2 and n = 5

Evaluate 2kn2 – kn + k2 + 10
A. 104
B. 100
C. 10
D. 124 (2 marks)

21. Expand (2x – 5) (3x – 4)

A. 6x2 + 23x +20
B. 6x2 – 23x – 20
C. -6x2 -23x + 20
D. 6x2 – 23x +20 (2 marks)

22. Differentiate the following function with respect to x:

y = 2x3 + 2x2 + 6x + 8
∂y
A. /∂x = 6x2 + 4x + 6
∂y
B. /∂x = 6x3 + 4x + 6
∂y
C. /∂x = 6x2 + 4x - 6
∂y
D. /∂x = 3x2 + 4x + 6 (2 marks)

CM14 Page 3
Out of 7
Use the following information to answer Question 23 – Question 27.

P= 2 1 Q= 1 0 R= 0 1 S= 1 -2
3 1 0 1 1 0 -6 3

Given that aP + bQ = S

23. Find a
A. -2
B. 2
C. 5
D. 3 (2 marks)

24. Find b
A. -5
B. 2
C. 5
D. -6 (2 marks)

25. Find the determinant of P

A. 1
B. 0
C. -1
D. 5 (2 marks)

26. Find P-1

ke
A. -1 1

o.
i.c
3 -2

op
.ch
w
w
w
B. 1 -1
-3 2

C. 1 -1
-3 2

D. (2 marks)
2 3
1 1

27. Find ST

A. 1 -6
2 3

B. -6 3
1 -2

C. 1 -6
-2 3

D. -1 2
6 -3 (2 marks)

CM14 Page 4
Out of 7
28. The marked price of a book was Sh.500. The book was sold for Sh.450. What is the percentage discount offered
on the product?
A. 5%
B. 10%
C. 11%
D. 50% (2 marks)

29. Dennis Juma bought a bike for Sh.7,500. He wants to sell it by making a profit of 25% on the selling price. What
is the selling price of the bike?
A. Sh.9,375
B. Sh.5,625
C. Sh.10,000
D. Sh.9,500 (2 marks)

30. Rita Mueni sold apples for Sh.400. She made a profit of 25% on cost. Find the cost price of the apples.
A. Sh.320
B. Sh.200
C. Sh.300
D. Sh.250 (2 marks)

31. The student population of a college is increasing at the rate of 20% per annum. Calculate the student population
after three years if the current population is 1,000.
A. 1,200
B. 1,440
C. 1,728
D. 3,600 (2 marks)

e
32. The production of a firm rose to 2,500 bags from 1,600 bags in two years. Find the rate of growth per annum.
.k
A. 25%
B. 20%
.co
C. 200%
D. 250% (2 marks)
pi

33. Under the reducing balance method of providing for depreciation, the amount of depreciation _______________.
A. Increases every year
ho

B. Remains constant
C. Decreases every year
C

D. Increases or decreases every year (2 marks)

34. Calculate the amount of interest earned if a sum of Sh.800,000 is invested for three years at a simple interest rate
of 8% per annum.
A. Sh.192,000
B. Sh.608,000
C. Sh.80,000
D. Sh.992,000 (2 marks)

35. The cost of a motor vehicle in Britain is 30,500 British Pounds (£). Determine the cost of the motor vehicle in
Kenya Shillings (KES) assuming the prevailing exchange rate is 1 British pound (£) = 132 KES.
A. Sh.4,026,000
B. Sh.231.06
C. Sh.231,060.60
D. Sh.4,000,000 (2 marks)

36. Lydia Njuguna bought a delivery van for Sh.2,800,000. The car depreciates at the rate of 14% per annum on a
straight line basis. Calculate the value of the car after 2 years.
A. Sh.2,016,000
B. Sh.784,000
C. Sh.2,000,000
D. Sh.2,006,000 (2 marks)

CM14 Page 5
Out of 7
37. The price of 1kg of cooking fat has increased by 20% over the last one month to retail at Sh.240 per kg. Calculate
the retail price per kg before the price increases.
A. Sh.160
B. Sh.200
C. Sh.300
D. Sh.280 (2 marks)

38. ABC Ltd pays its employees on hourly basis. The normal rate per hour is Sh.200 while overtime is paid at the rate
of 25% above the normal hourly rate. The normal working hours per week are 32 hours. Calculate the weekly
wage for an employee who worked for 40 hours.
A. Sh.6,400
B. Sh.8,000
C. Sh.8,400
D. Sh.10,000 (2 marks)

39. Michael Oketch makes an initial investment of Sh.X at 10% compound interest in ABC bank. Calculate the value
of X if at the end of 3 years the total amount in the investment account is Sh.85,184.
A. Sh.59,628.80
B. Sh.60,000
C. Sh.64,000
D. Sh.76,665.60 (2 marks)

40. What will be the amount to be paid at the end of three years on Sh.3,500 at an interest rate of 2% per annum
compounded half-yearly?
A. Sh.3,606.054
B. Sh.3,710
C. Sh.3,715.3205
D. Sh.3,714.228 (2 marks)

ke
o.
i.c
The mean cost of 12 items is Sh.225. What is the cost of the 13th item that causes the mean to become Sh.250?

op
41.

.ch
A. Sh.250

w
w
B. Sh.237.5

w
C. Sh.550
D. Sh.475 (2 marks)

Use the frequency distribution below to answer Question 42 to Question 44.

Score 19 23 27 30 32 34 39 43
Frequency 2 4 8 12 13 7 4 3

42. Find the mean score.

A. 30
B. 30.275
C. 31.04
D. 32 (2 marks)

43. Find the median score.

A. 27
B. 30
C. 34
D. 32 (2 marks)

44. Find the standard deviation of the scores.

A. 4.90
B. 5.23
C. 24
D. 27.32 (2 marks)

CM14 Page 6
Out of 7
Use the information below to answer Question 45 to Question 47.

A box contains 4 blue balls and 6 red balls. A ball is drawn from the box and then replaced. A second ball is then drawn.
Find the probabilities that:

45. Both balls will be blue.

4
A. /5
4
B. /25
2
C. /15
4
D. /10 (2 marks)

46. One ball will be blue and the other red.

6
A. /25
B. 1
19
C. /25
12
D. /25 (2 marks)

47. At least one blue ball is drawn.

9
A. /25
6
B. /25
16
C. /25
19
D. /25 (2 marks)

48.
e
Two events are said to be dependent if _______________________.
A. They can happen together
.k
B. They cannot happen together
.co
C. The occurrence or non-occurrence of one event does not affect the occurrence or non-occurrence of the
other event
pi

D. The occurrence or non-occurrence of one event affects the occurrence or non-occurrence of the other
event (2 marks)
ho

49. The probability of one event happening is referred to as:

A. Simple probability
C

B. Marginal probability
C. Joint probability
D. Equally likely event (2 marks)

50. Determine the modal value in the following distribution:

2, 4, 7, 9, 3, 0, 5, 3, 1, 7, 9, 3
A. 3
B. 7
C. 9
D. 2 (2 marks)
……………………………………………………………………

CM14 Page 7
Out of 7
 CAMS LEVEL I

FUNDAMENTALS OF BUSINESS MATHEMATICS

TUESDAY: 22 August 2023. Afternoon Paper. Time Allowed: 2 hours.

This paper is made up of fifty (50) Multiple Choice Questions. Answer ALL questions by indicating the letter
(A, B, C or D) that represents the correct answer. Each question is allocated two (2) marks. Do NOT write anything
on this paper.

1. How do you write 0.08 as a percentage?

A. 80%
B. 0.08%
C. 8%
D. 0.8% (2 marks)

2. Round off 34.478 to the nearest whole number.

A. 34
B. 35

ke
o.
C. 34.5

i.c
op
D. 36 (2 marks)

.ch
w
w
3. If 59,049 kgs is divided in the ratio 3:2:4, the minimum difference between any two shares is?

w
A. 6,561 kgs
B. 13,122 kgs
C. 19,683 kgs
D. 26,244 kgs (2 marks)

4. The student enrolment at Elimu College in the year 2021 was 820 and this rose to 1,000 in the year 2022. Express
the increase in student enrolment in the year 2022 as a percentage of the student enrolment in 2021.
A. 18%
B. 21.95%
C. 82%
D. 121.95% (2 marks)

5. 331/3% of a football field is 7,200 metres. What is the complete length of the field?
A. 2,400 metres
B. 4,800 metres
C. 12,00 metres
D. 21,600 metres (2 marks)

6. Find the unknown in the following proportion:

13.6
/48 = y
/384
A. 0.00074
B. 1.70
C. 108.80
D. 1,355.29 (2 marks)

CM14 Page 1
Out of 8
7. Which one of the following is NOT a type of a bar chart?
A. Simple bar chart
B. Complex bar chart
C. Component bar chart
D. Multiple bar chart (2 marks)

8. A, B and C are in partnership sharing profits in the ratio of 2:3:6 respectively. In the year 2022, the business made
a profit of Sh.220,000. How much more did C get than A?
A. Sh.40,000
B. Sh.60,000
C. Sh.80,000
D. Sh.120,000 (2 marks)

9. Which one of the following is not a diagram used in the presentation of statistical data?
A. Pictogram
B. Ogive
C. Pie chart
D. Bar chart (2 marks)

10. Two events are said to be dependent if __________________________.

A. They can happen together
B. They cannot happen together
C. The occurrence or non-occurrence of one event affects the occurrence or non-occurrence of the other
D. The occurrence or non-occurrence of one event does not affect the occurrence or non-occurrence of the
other event (2 marks)

11. Expand (a + 2) (a – 3)
A. a2 +2a – 5
e
.k
B. a2 – a – 6
a2 – 5a – 6
.co
C.
D. a2 – 3a – 6 (2 marks)
pi

12. Integrate the following function: y = 4X3

ho

A. y = 4X4 + C
B. y = 4X4
C

C. y = X4 + C
D. y = 12X2 (2 marks)

13. Which one of the following methods cannot be used to find the mode?
A. Frequency polygon
B. Frequency histogram
C. Stem and leaf plot
D. Percentage ogive (2 marks)

14. Differentiate the following equations with respect to X

Y = -3X3 + 3X2 – X + 20
A. Y = -9X3 + 6X – 1
B. Y = -9X2 + 6X – 1
C. Y = -9X2 + 6X – 21
D. Y = -9X2 + 6X (2 marks)

CM14 Page 2
Out of 8
15. Solve the equation
2
/3 (12y – 6) = 2
/5 (15y + 10)
A. 0
B. 4/7
C. 4
D. 13/4 (2 marks)

16. A dance club had 7 fewer boys than girls. The total number of students in the club was 19. Find the number of
girls.
A. 6
B. 7
C. 12
D. 13 (2 marks)

17. Jack Omollo ordered 27 roses. Some of the roses were red while others were white in colour. The red roses cost
Sh.70 each while the white roses cost Sh.110 each. The total cost of the roses was Sh.2,450. Find the number of
red roses ordered.
A. 12
B. 13
C. 15
D. 14 (2 marks)

18. Given that the point P (8, -12) lies on the line -8x + ty + 40 = 0. Find the value of t.
A. -2
B. 0.5
C. 2
D. 51/3 (2 marks)

ke
o.
i.c
op
19. Find the equation of the line with X intercept = 30 and Y intercept = 40

.ch
w
A. Y= ¾X + 40

w
w
B. Y= 40
C. X= 30
D. Y= - 4/3X + 40 (2 marks)

20. Solve the equation X2 + 7X + 12 = 0

A. X = - 4 and X = - 3
B. X = + 4 and X = - 3
C. X = +4 and X = +3
D. X = - 4 and X = +3 (2 marks)

21. Which one of the following is NOT a characteristic of the arithmetic mean?
A. It is rigidly defined
B. It is not affected by extreme values
C. It uses all the data values
D. It is easy to calculate (2 marks)

22. Solve the inequality x + 3 ≥ 7 + 3x

A. X ≥ 2.5
B. X ≤ 2.5
C. X ≤ -2
D. X ≥ -2 (2 marks)

CM14 Page 3
Out of 8
23. Find the value of x + y if:
2x 5 = 8 5
7 -y 7 3

A. 4
B. 1
C. -3
D. 6 (2 marks)

24. Given that A = 1 3 5 and B = 2 3

2 4 3 1 5
0 4
Find A X B

A.
5 8
38 38

B. 5 38
8 38

C. 2 9
2 20
0 12
e
.k
.co
D. Incompatible (2 marks)
pi

25. If
2 4 1 5
A= and B=
8 6 4 3
ho

Find 3A - 4B
C

A. -2 8
-8 -6

B. 1 -1
4 3

C. 2 -8
8 6

D. -2 8 (2 marks)
-8 -6

CM14 Page 4
Out of 8
26. Find the inverse of the following matrix:

A= 6 2
8 3

A. 1
⁄2 3 2
-8 6

B. 1
⁄2 3 -2
8 6

C. 1
⁄2 3 -2
-8 6

D. 1
⁄2 3 2 (2 marks)
8 6

27. If we multiply the original matrix with its inverse, we always get a _____________________________.
A. Zero matrix
B. Diagonal matrix
C. Scalar matrix
D. Identity matrix (2 marks)

28. Two matrices are compatible for addition and subtraction if and only if:

ke
o.
A. They are square matrices

i.c
B. The number of rows in the first matrix equals the number of rows in the second matrix

op
.ch
C. The number of columns in the first matrix equals the number of rows in the second matrix

w
w
D. They are of the same order (2 marks)

w
29. Maji Limited purchases water taps at a cost of Sh.2,880 each. Assume its operating expenses are 25% of its cost
and that the company wishes to make a net profit of 20% of its selling price. Find the selling price of each water
tap.
A. Sh.4,320
B. Sh.3,600
C. Sh.4,500
D. Sh.4,800 (2 marks)

30. The selling price of a house is Sh.19,575,000. If the mark-up is 35% on the cost price, find the profit made on each
house sold.
A. Sh.5,075,000
B. Sh.12,723,750
C. Sh.6,851,250
D. Sh.14,500,000 (2 marks)

31. Eric Bwire took a business loan of Sh.340,000 at a simple interest rate of 14% per annum for 5 years. Calculate the
total interest paid on the loan.
A. Sh.47,600
B. Sh.95,200
C. Sh.102,000
D. Sh.238,000 (2 marks)

32. Find the accumulated amount that Dennis Waweru will have after 4 years if he invested Sh.40,000 at 12%
compounded semi-annually.
A. Sh.62,940.77
B. Sh.59,200
C. Sh.63,753.92
D. Sh.49,600 (2 marks)
CM14 Page 5
Out of 8
33. Find out how much money James Kioni should invest in a bank paying interest at a rate of 8% per year
compounded monthly so that at the end of 2 years, the accumulated amount will be Sh.120,000.
A. Sh.103,448.28
B. Sh.102,880.66
C. Sh.100,800
D. Sh.102,311.57 (2 marks)

34. Compound interest is where _______________________________.

A. Interest is higher than the principal amount
B. Interest is calculated on the principal amount
C. Interest is calculated on the principal amount plus the accumulated interest
D. Interest is calculated on the principal amount minus the accumulated interest (2 marks)

35. A pick-up whose cost is Sh.2,000,000 will depreciate to a scrap value of Sh.655,360 in 5 years. What is the rate of
depreciation if the reducing balance method is used to compute depreciation?
A. 80%
B. 32.768%
C. 20%
D. 67.232% (2 marks)

36. A sales person bought a van for Sh.1,800,000. The van depreciates at the rate of 10% per annum on reducing
balance. Calculate the accumulated depreciation after 3 years.
A. Sh.342,000
B. Sh.487,800
C. Sh.540,000
D. Sh.1,312,200 (2 marks)

37.
e
Grace Wekesa bought 6 computers for 6,200 US Dollars (USD). Calculate the cost of the computers in Kenya
.k
Shillings (Ksh) if the prevailing exchange rate at the time was 1 USD = Ksh.135
A. Ksh. 45.93
.co

B. Ksh. 6,200
C. Ksh. 837,000
pi

D. Ksh. 123,500 (2 marks)

ho

38. An importer based in Kenya imported 30 bales of clothes from United Kingdom at a cost of 66 Sterling Pounds (£)
per bale. He also incurred Ksh.100,000 on freight charges, 2% insurance in transit charge on the bale cost and also
C

paid Ksh.1,000 per bale as customs duty. Calculate the value of the goods in Kenya Shillings if the prevailing
exchange rate was 1£ = Ksh. 145.
A. Ksh.287,100
B. Ksh.387,100
C. Ksh.417,100
D. Ksh.422,842 (2 marks)

39. James Omondi works in a company and is paid an hourly rate of Sh. 200. A normal working day has 8 hours and
the employees are expected to work for 5 days a week. In the second week of June, James Omondi worked for 48
hours. Overtime is paid at a rate of 50% above the normal rate. Calculate the weekly wages earned by James
Omondi during that second week of June.
A. Sh.2,400
B. Sh.8,000
C. Sh.9,600
D. Sh.10,400 (2 marks)

40. An employee earns a taxable income of Sh.60,000 per month. If the tax rate is 15%, calculate the net income
earned by the employee assuming that the first Sh.24,000 is not taxed and that a personal relief of Sh.2,400 is
allowed.
A. Sh.28,200
B. Sh.30,600
C. Sh.54,600
D. Sh.57,000 (2 marks)

CM14 Page 6
Out of 8
In an examination given to a class of 5 students the following test scores were obtained:
40, 55, 60, 75 and 80

Use the data to answer Question 41 and Question 42

41. Calculate the standard deviation for the test scores.

A. 6.32
B. 3.79
C. 14.35
D. 206 (2 marks)

42. Determine the coefficient of variation for the test scores.

A. 10.19%
B. 23.14%
C. 30.10%
D. 43.2% (2 marks)

The frequency distribution of wages paid to workers in a certain tea processing factory is given in the table below:

Wages Sh. “000” Number of workers

10 – 20 30
20 – 30 45
30 – 40 35
40 – 50 40

Use the data to answer Question 43 to Question 45

ke
o.
i.c
op
43. Calculate the arithmetic mean for the data

.ch
A. Sh.25,000

w
w
w
B. Sh.35,000
C. Sh.30,667
D. Sh.40,667 (2 marks)

44. Calculate the modal wage

A. Sh.20,000
B. Sh.26,000
C. Sh.30,000
D. Sh.50,000 (2 marks)

45. Calculate the median wage

A. Sh.25,000
B. Sh.30,000
C. Sh.35,000
D. Sh.75,000 (2 marks)

There are 30 auditors working for Charles and Shah Associates. Of these auditors, 20 are male. 40% of the male
employees and 30% of the female employees in the organisation are graduates. An employee is selected at random.

Use the above information to answer Question 46 and Question 47

46. What is the probability that the employee selected is male and a graduate?
8
A. /11
8
B. /20
8
C. /30
8
D. /10 (2 marks)

CM14 Page 7
Out of 8
47. What is the probability that the employee selected is female and NOT a graduate?
7
A. /19
7
B. /10
7
C. /30
10
D. /30 (2 marks)

Use the information below to answer Question 48 to Question 50

A box contains 10 sets of batteries, 6 of which are double A size while the rest are tripple A size. 2 sets of batteries
are picked at random one after another without replacement.

Find the following probability:

48. Both are tripple A size

11
A. /15
16
B. /100
16
C. /90
12
D. /90 (2 marks)
49. Atleast one is double A size
78
A. /90
48
B. /90
30
C. /90
24
D. /90 (2 marks)

e
.k
50. One is double A size and the other is tripple A size
.co
24
A. /90
48
B. /90
pi

48
C. /100
30
/90
ho

D. (2 marks)
C

……………………………………………………………………

CM14 Page 8
Out of 8
 CAMS LEVEL I

FUNDAMENTALS OF BUSINESS MATHEMATICS

TUESDAY: 25 April 2023. Afternoon Paper. Time Allowed: 2 hours.

This paper is made up of fifty (50) Multiple Choice Questions. Answer ALL questions by indicating the letter (A, B,
C or D) that represents the correct answer. Each question is allocated two (2) marks. Do NOT write anything on this
paper.

1. If two events A and B are collectively exhaustive, then A is the _________________ of B.

A. Compliment
B. Conditional probability
C. Inverse
D. Reciprocal (2 marks)

2. If a six-sided dice is rolled, what is the probability that the outcome is 5?

A. ⅙
B. ⅕

ke
o.
⅚

i.c
C.

op
.ch
D. ½ (2 marks)

w
w
w
3. If a six-sided dice is rolled, what is the probability that the outcome is 5 or 2?
A. ⅚
B. ⅙
C. ⅓
D. ½ (2 marks)

4. Consider a deck of 52 playing cards. If we draw a card at random, the probability that it is a king is 4/52. Similarly,
13 1
there is a probability of /52 that it is spades and a probability /52 that it is king and spades. What is the
probability that it is king or spades?
A. 16/52
B. 1/52
C. 17/52
D. 1/2704 (2 marks)

5. Given the probability P(E) of event E is ⅓. What is the probability of its compliment EC?
A. 1
B. ⅔
C. ⅓
2
D. /9 (2 marks)

6. Which one of the following is NOT an advantage of the mode?

A. Easy to compute and understand
B. Least affected by extreme values
C. It is rigidly defined
D. It is based on all values (2 marks)

CM14 Page 1
Out of 7
7. __________________________ is data that is collected by the researcher himself.
A. Continuous data
B. Discrete data
C. Primary data
D. Secondary data (2 marks)

8. A method of data collection where all items in the population are investigated is referred to as ______________.
A. Census
B. Probability sample
C. Random sample
D. Strata (2 marks)

9. The data below shows the weight in kilograms of new students admitted in a school:

50, 45, 60, 41, 54, 70, 80.

Determine the median weight of the students.

A. 41
B. 54
C. 60
D. 80 (2 marks)

Use the data below to answer question 10 to question 12.

The number of off days taken by employees in a company in March 2023 is given in the table below:

Number of off days taken

e
Number of employees
0 41
.k
1 43
.co
2 29
3 18
4 11
pi

5 2
ho

10. Calculate the mean number of off days taken.

A. 1.45
C

B. 2
C. 2.5
D. 3 (2 marks)

11. Calculate the standard deviation of off days taken.

A. 1.30
B. 1.69
C. 2
D. 5
(2 marks)
12. Calculate the median number of off days taken:
A. 1
B. 2
C. 2.5
D. 3 (2 marks)

13. The probability of two or more events happening together is referred to as?
A. Conditional probability
B. Joint probability
C. Marginal probability
D. Mutually exclusive (2 marks)

CM14 Page 2
Out of 7
14. Which of the following is not a method of obtaining primary data?
A. Records
B. Interview
C. Observation
D. Questionnaire (2 marks)

15. Which one of the following is not a categorical variable?

A. Hair colour
B. Make of computer
C. Gender
D. Number of children (2 marks)

16. In the content of a stem and leaf representation, the observation 436, the stem is __________________________.
A. 4
B. 6
C. 43
D. 436 (2 marks)

17. Which one of the following is true about matrix operations?

A. AB = BA
B. A – 1.A = A – 1
C. A. A – 1 = A
D. A.I = A (2 marks)

18. The difference between the cost of goods sold and the selling price is called_____________________.

ke
o.
A. Bonus

i.c
op
B. Discount

.ch
w
C. Mark-up

w
w
D. Premium (2 marks)

19. A machine depreciated in value each year at the rate of 10% of its value at the beginning of a year. The machine
was purchased for Sh.10,000. Obtain its value at the end of the 10th year.
A. 1,000
B. 3,487
C. 3,874
D. 9,000 (2 marks)

20. Round off the following figure to three decimal places 34.99949.
A. 34.000
B. 34.999
C. 35.000
D. 35.999 (2 marks)

21. Convert 1.8% to decimal.

A. 0.0018
B. 0.018
C. 0.18
D. 1.80 (2 marks)

22. Convert 3.56 to percentage.

A. 0.0356%
B. 3.56%
C. 35.6%
D. 356% (2 marks)

CM14 Page 3
Out of 7
23. Change 30/80 to percent.
A. 0.375%
B. 3.75%
C. 37.5%
D. 375% (2 marks)

24. A solution contains 200 grams of ingredient A and 40 grams of ingredient B. What percent of the solution is A?
A. 16⅔%
B. 20%
C. 80%
D. 83⅓% (2 marks)

Use the data below to answer questions 25 and 26.

Assume that the following rates of tax applied throughout the year of income 2022.

Monthly taxable pay (Sh.) Rate of tax (% in each Sh.)

1 – 24,000 10
24,001 – 32,333 25
Excess over 32,333 30

Monthly personal relief provided was Sh.2,400.

25. Calculate the net pay-as-you-earn (PAYE) to Alex Omollo who earned a gross salary of Sh.35,000 in the month of
January 2023.
A. 2,883.35
B. 5,283.55
C. 8,100
e
.k
D. 10,500 (2 marks)
.co

26. Calculate the net pay to Alex Omollo if in addition to PAYE he contributed Sh.200 and Sh.1,300 to national social
security fund (NSSF) and national hospital insurance fund (NHIF) respectively.
pi

A. 23,000
B. 25,400
ho

C. 28,216.45
D. 30,616.65 (2 marks)
C

Use the data below to answer question 27 and question 28.

A tourist left Switzerland with Swiss Franc 4,500. He paid Swiss Franc 500 for his flight to Kenya. Upon arrival, he
converted the balance into Kenya Shillings at a rate of 1 Swiss Franc = Ksh.90 and paid a commission of 1% to a Kenyan
agent.

27. Calculate the total commission paid to the Kenyan agent in Kenya Shillings.
A. KSh.40
B. KSh.45
C. KSh.3,600
D. KSh.4,050
(2 marks)
28. Determine the total amount the tourist received after commission in Kenya Shillings.
A. KSh.356,400
B. KSh.360,000
C. KSh.400,950
D. KSh.405,000
(2 marks)
29. The price of television set inclusive of a 16% VAT is Sh.46,400. Calculate the price before tax.
A. Sh.7,424
B. Sh.38,976
C. Sh.40,000
D. Sh.53,824 (2 marks)
CM14 Page 4
Out of 7
30. Find the inverse of the following matrix.
X = 4 6
2 5

A. 5 6
⅛ –2 4

B. 5 –6
–⅛ –2 4

C. 5 –6
⅛ –2 4

D. 4 –6
⅛ –2 5 (2 marks)

31. What type of a matrix is C = 5 0 0

0 6 0
0 0 5
A. Diagonal matrix
B. Identity matrix
C. Null matrix
D. Scalar matrix (2 marks)

32. Determine the value of K given that 3, 15, 75, K and 1,875 are in proportion.

ke
A. 5

o.
i.c
B. 10

op
.ch
C. 15

w
w
D. 375 (2 marks)

w
33. Integrate the following function 2K3 + 4K.
A. 0.5K4 + 2K2 + C
B. 0.5K4 + 4K2 + C
C. 0.5K4 + 3K2 + C
D. K4 + 2K2 + C (2 marks)

34. Differentiate the following function.

Y = –2x2 + 3x – 4
dy
A. /dx = – 2x + 3x + 4
dy
B. /dx = – 4x + 3
dy
C. /dx = – 4x + 3x
dy
D. /dx = 12 (2 marks)

35. Solve the equation: 20 + 4x = 28

20 40
A. –103.5
B. –96.5
C. 96.5
D. 103.5 (2 marks)
x
36. Solve the inequality: 2(x+3) > /2
A. X < –4
B. X < 4
C. X > –4
D. X > 4 (2 marks)
CM14 Page 5
Out of 7
37. Find the value of the following definite integral

ʃ
5
4x . dx
A. 8 2
B. 12
C. 42
D. 50 (2 marks)

38. Find the output X that will maximise the profit P for the function P = 800x – x2
A. 20
B. 28
C. 400
D. 800 (2 marks)

39. Find the maximum revenue for the revenue function R = 600x – 2x2.
A. 0
B. 150
C. 300
D. 45,000 (2 marks)

40. Find the equation of a straight line with a slope (M) –⅓ and passing through point Z (–1, –2).
A. x + 3y = –7
B. –x –⅓y = –2
– ⅓x + y =
e
C. –2 .k
D. –x + 3y = 7 (2 marks)
.co
41. If a linear function goes through the points X = 2, Y = 5 and X = 3, Y = 7.
Specify the equation of the straight line.
A. 2x + y = 1
pi

B. –2x + y = –1
ho

C. –2x + y = 1
D. –x + y = 2 (2 marks)
C

42. Simplify the following expression.

6x(2 + 3x) – 2(9x2 – 5x) – 484 = 0

A. –22
B. –242
C. 22
D. 242 (2 marks)

43. The order of matrix B is (1 x 3) and that of C is (3 x 5).

Find the order of matrix BC.
A. 3x3
B. 5x1
C. 3x5
D. 1x5 (2 marks)

44. A vendor bought a power bank for Sh.3,500. He intends to make a profit mark up of 20%. Calculate the selling
price of the power bank.
A. Sh.700
B. Sh.2,800
C. Sh.4,200
D. Sh.4,375 (2 marks)

CM14 Page 6
Out of 7
45. If an item bought for Sh.575 is sold at a 20% net profit margin, find the selling price of the item.
A. Sh.115
B. Sh.143.75
C. Sh.690
D. Sh.718.75 (2 marks)

46. Njeri paid Sh.720 for a dress after the seller offered her a 10% cash discount. Calculate the marked price of the
dress.
A. Sh.640
B. Sh.800
C. Sh.880
D. Sh.900 (2 marks)

47. Find the compound interest for an investment of Sh.4,000 at 6% interest compounded semi-annually for 10 years.
A. Sh.1,376
B. Sh.3,224
C. Sh.5,376
D. Sh.7,224 (2 marks)

48. Ken Mwamba is planning to buy a car worth Sh.680,000 in 3 years time. The bank offers a compound interest rate
of 14% per annum. Determine the principal amount that Ken Mwamba should deposit in order to reach his target
A. Sh.221,019.37
B. Sh.304,567
C. Sh.458,980.63
D. Sh.500,000 (2 marks)

49. Ali Muli bought a Pick-up for Sh.1,200,000. The Pick-up is expected to depreciate at the rate of 10% per annum

ke
o.
on a straight line basis. Calculate the value of the Pick-up after 3 years.

i.c
op
A. Sh.120,000

.ch
B. Sh.360,000

w
w
w
C. Sh.840,000
D. Sh.1,080,000 (2 marks)

50. A sum of money invested at a compound interest amounted to Sh.21,632 at the end of the second year and
Sh.22,497.28 at the end of the third year. Find the rate of interest.
A. 0.96%
B. 1.04%
C. 1.96%
D. 4% (2 marks)
……………………………………………………………………

CM14 Page 7
Out of 7
 CAMS LEVEL I

FUNDAMENTALS OF BUSINESS MATHEMATICS

TUESDAY: 6 December 2022. Afternoon Paper. Time Allowed: 2 hours.

This paper is made up of fifty (50) Multiple Choice Questions. Answer ALL questions by indicating the letter (A, B,
C or D) that represents the correct answer. Do NOT write anything on this paper.

1. Round off 562 to the nearest number of hundreds.

A. 500
B. 550
C. 560
D. 600 (2 marks)

2. Round off 23.89543 to two decimal places.

A. 23.00
B. 23.89
C. 23.90
D. 23.91
e (2 marks)
.k
3. What type of fraction is 103/7?
.co

A. Improper fraction
B. Mixed fraction
pi

C. Proper fraction
D. Whole number (2 marks)
ho

4. Convert 55/8 into a percentage?

C

A. 62.5%
B. 500%
C. 562.5%
D. 600% (2 marks)

5. A construction company hired 40 workers to construct and complete a project in 200 days. However, due to heavy
rains there was a delay of 40 days in starting the work. Determine the number of extra workers to be hired in order
to complete the work on time after the delay.
A. 8
B. 10
C. 160
D. 200 (2 marks)

6. During drought, ⅕ of the animals in a certain village died and 1,200 were left. Determine the number of animals
that died?
A. 300
B. 1,500
C. 4,800
D. 6,000 (2 marks)

7. Determine the value of ⅔ - ⅓ ÷ (⅔ + ⅕)

A. 5/13
B. 11/30
C. 11/39
D. 5/6 (2 marks)
CM14 Page 1
Out of 7
8. The common factor of x3 y4 and x3 y2 is:
A. x3 y3
B. x3 y2
C. x2 y2
D. x2 y3 (2 marks)

9. Solve the following simultaneous equations:

x + 2y = 3
x – 2y = 11

A. x = 0, y = 1.5
B. x = 7, y = –2
C. x = – 4, y = 3.5
D. x = 3, y=0 (2 marks)

10. Remove the brackets from (4x – 1) (2x – 3)

A. 8x2 – 10x + 3
B. 8x2 – 14x +3
C. 8x2 + 3
D. 8x2 – 14 + 3 (2 marks)

11. Factorise 50x2 – 20x + 2.

A. (10x + 2) (5x – 1)
B. (10x – 2) (5x + 1)
C. (10x + 2) (5x + 2)
D. (10x – 2) (5x – 1) (2 marks)

ke
o.
i.c
12. Find the value of 12z2 – 18z + 21 when z = – 5.

op
.ch
A. –189

w
w
B. 189

w
C. 231
D. 411
(2 marks)
13. Solve the inequality y – 4 < 2y + 5.
A. y > –9
B. y < –9
C. y>9
D. y<9 (2 marks)

14. Differentiate the following function with respect to y:

z = 4y4 + y3 + 0.5y2 – 3y + 10

A. 4y3 + 3y2 + y – 3
B. 16y4 + 3y3 + 3y – 3
C. 16y3 + 3y3 + y – 3
D. 16y3 + y2 + y – 13 (2 marks)

15. Differentiation is used to determine the____________________________ of a function.

A. y intercept
B. Gradient
C. Value
D. Range (2 marks)

16. Find the integral of 6x2 – 10x + 15.

A. 12x – 10x
B. 2x3 – 5x2 + 15x + c
C. 6x – 10
D. 6x3 – 10x2 + 15x + c (2 marks)
CM14 Page 2
Out of 7
17. Two matrices can be multiplied if and only if:
A. The number of columns in the first matrix is equal to the number of rows in the second matrix
B. They are of the same order
C. The number of rows in the first matrix is equal to the number of columns in the second matrix
D. Has equal number of rows and columns (2 marks)

18. A square matrix in which all elements in the principal diagonal are the same, but all other elements are zero is
referred to as:
A. Square matrix
B. Diagonal matrix
C. Null matrix
D. Scalar matrix (2 marks)

19. Given that A = 2 9 B = 1 8 and AB = 56 43

5 x 6 3 53 64

Find the value of x.

A. 8
B. 12
C. 21.33
D. 61 (2 marks)

20. Find the value of y given that A = 4 5 and A–1 = –11 5

y 11 9 –4
A. –9
B. –5
C. 5
e
.k
D. 9 (2 marks)
.co

21. Convert a margin of 3/10 to a mark-up.

3
pi

A. /13
3
B. /7
ho

3
C. /5
7
D. /10 (2 marks)
C

22. Noah sells X watches at a total price of Sh.2,016,000. He makes a profit of 40% on cost price of all the watches. If
the cost per watch is Sh.4,000, determine the number of watches that Noah sold.
A. 202
B. 302
C. 360
D. 504 (2 marks)

23. Bella bought a pick-up for Sh.2,000,000. The pick-up depreciated at the rate of 20% per annum on a straight line
basis. It has a residual value of Sh.400,000. Calculate the value of the pick-up after 3 years.
A. Sh.800,000
B. Sh.960,000
C. Sh.1,040,000
D. Sh.1,200,000 (2 marks)
Use the information below to answer question 24 to 26.

Mr Mutie bought a machine for Sh.3,600,000. After using it for 150,000 hours, he can sell it for Sh.2,100,000.

24. What is the rate of depreciation of the machine per hour?

A. Sh.10
B. Sh.14
C. Sh.24
D. Sh.38 (2 marks)

CM14 Page 3
Out of 7
25. What is the linear depreciation equation in terms of hours worked by the machine?
A. r = 2,100,000 – 10t
B. r = 3,600,000 – 24t
C. r = 3,600,000 – 10t
D. r = 3,600,000 – 14t (2 marks)

26. What is the book value of the machine after running for 240,000 hours?
A. Sh.240,000
B. Sh.1,200,000
C. Sh.2,400,000
D. Sh.3,360,000 (2 marks)

27. A business imported goods worth 123,500 US Dollars, the prevailing exchange rate was 1 US Dollar = Ksh.110.

Calculate the value of the goods in Kenya Shillings.

A. Ksh.12,350
B. Ksh.1,235,000
C. Ksh.1,358,500
D. Ksh.13,585,000 (2 marks)

28. John Kitavi bought a car from a Japanese friend for 5,640,000 Yen. Given that 100 Japanese Yen = 83 Kenya
Shillings, determine the amount in Kenya Shillings that John Kitavi paid for the car.
A. Ksh.56,400
B. Ksh.67,952
C. Ksh.4,681,200
D. Ksh.6,795,181 (2 marks)

ke
o.
29. An employee earns a taxable income of Sh.80,000. If the rate of tax is 15% for the first Sh.20,000 and 25% for any

i.c
op
amount above Sh.20,000, calculate his net income.

.ch
w
A. Sh.18,000

w
w
B. Sh.62,000
C. Sh.65,000
D. Sh.77,000 (2 marks)

30. An employee is paid Sh.250 per hour for a 40 hours week. He then earns overtime at time-and-a-half. During a
certain week, his total weekly wage was Sh.13,000. How many hours of overtime did he work?
A. 4 hours
B. 8 hours
C. 12 hours
D. 44 hours (2 marks)

31. Monthly taxable pay Rate of tax per month

1 – 24,000 10%
24,000 – 32,333 25%
Excess over 32,333 30%

From the above table, compute the total tax payable by an employee earning Sh.56,000 in a month.
A. Sh.4,483.25
B. Sh.7,100.1
C. Sh.11,583.35
D. Sh.16,800 (2 marks)
32. A company pays its salesmen Sh.8,000 per month as basic pay plus a commission of X% on the gross sales
monthly. In the month of November, one salesman earned Sh.298,460 after making gross sales of Sh.2,420,500.
Determine the rate of commission as a percentage.
A. 0.12%
B. 0.13%
C. 12%
D. 13% (2 marks)

CM14 Page 4
Out of 7
33. Grace borrowed a loan of Sh.1,200,000 at a compound interest rate of 8% per annum. Calculate the interest paid
after 5 years.
A. Sh.480,000
B. Sh.563,193.69
C. Sh.1,763,193.69
D. Sh.2,963,193.69 (2 marks)

34. Simple interest is calculated based on__________________________________.

A. Accumulated interest
B. The principal amount
C. The principal amount plus accumulated interest
D. The principal amount minus the accumulated interest (2 marks)

35. Mary Muinde invested Sh.55,000 for 18 months at a simple interest rate of 11.5% per annum. Find the maturity
value of the principal.
A. Sh.9,487.5
B. Sh.64,487.5
C. Sh.113,850
D. Sh.168,850 (2 marks)

Use the following data to answer question 36 to 38.

The earnings per share (EPS) for 5 companies are tabulated below:

Company Earnings per share (EPS) (Sh.)

A 2.5
B 4
C 2.5
D 3
e
.k
E 3.25
.co

36. What is the arithmetic mean earning per share?

A. Sh.2.5
pi

B. Sh.3
C. Sh.3.05
ho

D. Sh.3.25 (2 marks)
C

37. What is the median earning per share?

A. Sh.2.5
B. Sh.3
C. Sh.3.25
D. Sh.4 (2 marks)

38. Given that the standard deviation for the earning per share is 0.56. Calculate the percentage coefficient of
variation.
A. 17.2%
B. 18.36%
C. 18.61%
D. 22.4% (2 marks)

39. Which of the following variables is discrete?

A. Share price
B. Shares sold
C. Weight
D. Volume (2 marks)
40. Which of the following tools can be used to estimate the mode of a distribution?
A. Frequency
B. Lorenz curve
C. Pie chart
D. Z - chart (2 marks)

CM14 Page 5
Out of 7
41. The average squared deviation of the data points from their mean is known as:
A. Coefficient of variation
B. Mean deviation
C. Standard deviation
D. Variance (2 marks)

42. A variable which can assume at most a countable number of values is called?
A. Continuous variable
B. Discrete variable
C. Integer
D. Random variable (2 marks)

43. The probability of an event B occurring given that event A has already occurred is referred to as:
A. Conditional probability
B. Joint probability
C. Marginal probability
D. Simple probability (2 marks)

44. The total of all possible outcomes in an experiment is referred to as_____________________.

A. Event
B. Sample point
C. Sample space
D. Outcome (2 marks)

Use the data below to answer question 45 and 46.

A cross tabulation of students in a singing competition by gender and by singing voice is given below:

Voice Soprano Alto Tenor

ke
o.
i.c
op
.ch
Gender

w
w
Male 155 145 95

w
Female 169 153 119

A student is selected at random, what is the probability that the student selected is:

45. Tenor or male

609
A. /836
95
B. /836
490
C. /836
514
D. /836 (2 marks)

46. An alto given that the student is male.

145
A. /395
145
B. /298
145
C. /836
693
D. /836 (2 marks)

47. The count of data points in a class divided by the total number of data points is called?
A. Class mid-point
B. Cumulative frequency
C. Frequency
D. Relative frequency (2 marks)

48. The probability rule for compliments is stated as:

A. P(Ā) = P(A) – 1
B. P(Ā) = P(Ā) + P(A)
C. P(Ā) = 1 – P(A)
D. P(Ā) = 1 + P(A) (2 marks)
CM14 Page 6
Out of 7
49. Mary and John are operating a partnership business where they share profit or loss in the ratio of 5:7 respectively.
If Mary earned Sh.200,000 from the partnership, calculate the total profit earned from the partnership.
A. Sh.117,000
B. Sh.280,000
C. Sh.480,000
D. Sh.672,000 (2 marks)

50. An investor wishes to have an amount of Sh.440,000 on maturity in 30 months’ time. He can invest his money at a
simple interest rate of 8.5% per annum. How much money should he invest now in order to achieve his aim?
A. Sh.16,603.77
B. Sh.17,254.90
C. Sh.140,800
D. Sh.362.886.60 (2 marks)

……………………………………………………………………

e
.k
.co
pi
ho
C

CM14 Page 7
Out of 7
 CAMS LEVEL I

PILOT PAPER

FUNDAMENTALS OF BUSINESS MATHEMATICS

November 2021. Time allowed: Two hours

This paper has three sections. Section One has forty (40) multiple choice questions. Section Two has twenty (20)
short response/computational questions. Section Three has one (1) computational question. All questions are
compulsory. The marks allocated to each question are shown at the end of the question.

SECTION ONE
[40 MARKS] [40 MINUTES]

1. Which is the best definition of probability? (1 mark)

A. Measure of happenings
B. Measure of Numbers

ke
o.
C. Fraction of happening

i.c
op
D. Measure of likelihood.

.ch
w
w
2. Which of the following is not a ratio? (1 mark)

w
A. 4.333
B. 2.847847
C. 5/4
D. 2.115713287.

3. Which of the following is an algebraic expression? (1 mark)

A. x = 3y x 1
B. h + 2m – 3a
C. 5/2
D. 4.
4. Which of the following expression best describe calculus? (1 mark)
A. Study of rates.
B. Study of rate of change.
C. Study of variables
D. Study of changes.

5. Select the equivalent of 4,000 km from the following: (1 mark)

A. 400,000,000 cm
B. 0.0004 cm
C. 40,000 cm
D. 4.0 x 109 cm.
6. Select a measure of dispersion from the following: (1 mark)
A. Mean.
B. Mode.
C. Range.
D. Pie chart.

CM14 Page 1
Out of 7
7. Which of the following is equivalent to the ratio: (1 mark)

1/10: 3/10: 4/10: 2/10?

A. 2:7:8:4
B. 1:5:4:2
C. 3:9:12:6
D. 2:5:4:2

8. With regard to matrices, which of the following best describes a property of matrices: (1 mark)
A. AXB = BXA
B. A+B = B+A
C. AXBXC = AXCXB
D. hAB = Hba.

9. Select one of the statements below that best describes mutually exclusive events: (1 mark)
A. Happen at the same time
B. Happen at different times
C. Happening of one excludes happening of the other
D. None of the above.

10. In your opinion, which of the following best represents the income equation: (1 mark)
A. Total Cost – Total Revenue = Income
B. Fixed Costs – Total Revenue = Income
C. Total Revenue – Variable Costs = Income
D. Total Revenue – Total Cost = Income.

11.
e
Name the term used to decide the percentage of profit on sales: (1 mark)
A. Mark-up
.k
B. Gross margin
.co
C. Sales margin
D. Net margin.
pi

12. What indicates boundary points of inequalities of the form: (1 mark)

x>a, or x<b on the number line?
ho

A. Has no effect
B. Doubles the values
C

C. Changes the sign to its opposite

D. Changes the inequality to an equation.

13. Indicate what best represents the effect of dividing an inequality by a negative number: (1 mark)
A. Has no effect
B. Doubles the values
C. Changes the sign to its opposite
D. Changes the inequality to an equation.

14. From the four expressions below, which one represents the gradient of a polynomial: (1 mark)
A. dy = xn – 1
dx

B. dy = (n + 1)xn – 1
dx

C. dy = nxn – 1
dx

D. dy = xn + 1
dx n+1

CM14 Page 2
Out of 7
15. If events A and B are equiprobable, which of the following is correct: (1 mark)
A. P(A) < P
B. P(A) > P(B)
C. P(A) + P(B) = 1
D. P(A) = P(B).

16. Which of the following tools is used to graphically evaluate the median of a distribution? (1 mark)
A. Cumulative frequency curve
B. Frequency polygon
C. Histogram
D. Stem and leaf diagram.

17. Select the number corrected to 4 significant figures from the following: (1 mark)
A. 52,734
B. 52,730
C. 0.85273
D. 0.5200

18. Which of the following represents 209/264 in its simplest form? (1 mark)
A. 109/264
B. 19/24
C. 19/25
D. 21/24.

19. In any football match. Three outcomes are possible: (1 mark)

A win, a draw or a loss. Given that a win is P(W), a draw P(D) and a loss is P(L).

ke
o.
Which of the following describes the sum of the three: (1 mark)

i.c
op
A. Equiprobable events

.ch
w
B. Conditional events

w
w
C. Impossible events
D. Collectively exhaustive events.

20. Which of the following best defines a singular matrix: (1 mark)

A. It’s determinant = 1
B. It’s determinant + Infinity
C. It’s determinant = 0
D. It’s determinant < 0

21. Identify the condition that defines a stationary point from the following: (1 mark)
A. dy = 0
dx
B. dx = 0
dy
C. d2y = 0
dx2
D. dy = 1
dx

22. Identify the type of discount that relates to purchases made in bulk from the following: (1 mark)
A. Cash discount
B. Trade discount
C. Loss discount
D. None of the above.

CM14 Page 3
Out of 7
23. Identify the formula for compound interest from the following: (1 marks)
A. I = PxRxT
100
B. I = PxRxT – 100
100
C. P(1 + r)n – P = I

D. I=PxR

24. Given that the average exchange rate in 2019 was I USD = KES 101.3899, what was the equivalent of KES540 in
dollars? (1 mark)
A. 5.032
B. 0.5325
C. 5.326
D. 53.25

25. What is the name given to total possibilities that can happen in a coin tossing experiment? (1 mark)
A. Outcome
B. Sample space
C. Event
D. Tree diagram.
26. Your performance in this examination has no relationship with the performance of a student in Zambia sitting the
same examination. Name this type of events: (1 mark)
A. Dependent events
B. Independent events
C. Conditional events
e
D. Similar events.
.k
.co
27. Which of the following measures of dispersion is the square-root of variance? (1 mark)
A. Standard deviation
B. Mean absolute deviation
pi

C. Mean deviation
D. Mean squared deviation.
ho

28. Which of the following relations represent a symmetrical distribution? (1 mark)

C

A. Mean < Median < Mode

B. Mean > Median > Mode
C. Mean < Median = Mode
D. Mean = Median = Mode.

29. Identify a depreciation method which charges higher depreciation amounts in the initial years and lower amounts
in later years progressively. (1 mark)
A. Declining balance method
B. Straight line method
C. Revaluation method
D. None of the above.
30. Select a non-statutory deduction from the following: (1 mark)
A. NSSF
B. Bank loan
C. NHIF
D. Income tax.

31. What is the main distinction between fixed and variable costs? (1 mark)
A. Fixed costs remain fixed with increase in output.
B. Variable costs vary according to period length to which they relate.
C. Fixed costs are also variable costs in the long run.
D. Fixed costs and variable costs are the same.

CM14 Page 4
Out of 7
32. In computing a mark-up, what is the denominator? (1 mark)
A. Total sales
B. Total expenses
C. Total cost
D. Net profit.
33. Given a matrix of the form A = a b, which of the following expressions represents the determinant of A?
c d
A. bc – ad
B. ab – cd
C. ac – bd
D. ad – bc (1 mark)

34. The number line contains natural numbers N, Whole numbers W, Rational number Q and Irrational number Q c.
Identify a natural number from the following: (1 mark)
A. 2.1
B. 2/5
C. –7/15
D. 4

35. What is the shape formed by the area between equations y = 3x + 5 and y = 3x + 9 from x = 0 to x = 5
A. Trapezium
B. Pararellogram
C. Circle
D. Square. (1 mark)

36. Which of the following terms describes the rate of change? (1 mark)
A. dy

ke
o.
dx

i.c
op
B. y

.ch
w
C. d2y

w
w
dx2
D. d3y
dx3

37. Simplify the term: (x + 3y) (2x – 1) (1 mark)

(1 – 2x) (3x + 9y)
A. 2/3
B. 1/3
C. –1/3
D. –3

38. Which of the following is a method of solving simultaneous equations? (1 mark)

A. Matrix method
B. Factorisation
C. Expansion
D. Addition.

39. Which of the laws of probability applies when possibility of an event reduces? (1 mark)
A. Division law
B. Addition law
C. Subtraction law
D. Multiplication law.

40. What expression best represents the solution to the expression (2x)? (1 mark)
A. x2 + c
B. ½x + c
C. x+c
D. x2
CM14 Page 5
Out of 7
 SECTION TWO

[40 MARKS] [1 Hour]

41. In your view, do you agree that substitution is one of the methods of solving a simultaneous equation?
(2 marks)

42. Expand and simplify 2y(3x + 1) – 6yx + 9x. (2 marks)

43. What is the name given to a value that represents a sample (usually calculated from a sample)? (2 marks)

44. Solve the following set of simultaneous equations:

3x + ½y = 4
2y – 4x = 0 (2 marks)

45. When Salim sells up to KES75,000 worth of sales, he receives 30% commission on sales. When he sells up to
KES150,000, he receives 5% commission on sales. What is his sales commission when he sells KES120,000?
(2 marks)
46. Five men can off-load a truck in 2 hours. How long will 8 men take to off-load the same truck? (2 marks)

47. Given that 3x + 2(5 – x) < 7, solve for x. (2 marks)

48. Four exercise books and 3 pens cost KES255. What is the cost of 1 exercise book and 2 pens, given that 3 exercise
books and 1 pen costs KES160? (2 marks)

49. Convert the fraction 5/9 into a percentage correct to 2 decimal places. (2 marks)

50. Indicate whether this definition is true or false:

e
Standard deviation is the square-root of mean squared deviations from mean. (2 marks)
.k
.co
51. Given that profit  of a firm is  = 8 + q – q2 where q, is the quantity sold in thousands, find q for maximum profit.
(2 marks)
pi

52. Write 3.4.5 as a fraction. (2 marks)

ho

53. Given A = 6 0 and B = 3 7

–1 3 8 –1
C

Find A + 2B (2 marks)

54. Ali Mohamed deposited KES200,000 in a bank that compounds interest half yearly. What interest accrued in
3 years? (2 marks)

55. Without graphing, how do you distinguish between a minimum stationary point from a maximum stationary point?

56. Work out the determinant of A = 7 –2

4 3 (2 marks)

57. The book value of a machine depreciates to 90% of its value at the beginning of the year. What is its book value
after 3 years in terms of its original value? (2 marks)

58. Use these five deviations to work out standard deviation 3, –1, –2, 1 –1 (2 marks)

59. What is plotted on the x – axis of a cumulative frequency curve? (2 marks)

60. What is the sum of year’s digits method used for? (2 marks)
(Total: 20 marks)

CM14 Page 6
Out of 7
 SECTION THREE
[20 MARKS] [20 MINUTES]
61. Peta Limited produces product P and Q. At the current levels of production of 200 units of P and 250 units of Q, a
sale of 2 units of P and 3 units of Q yields a profit of KES 7,500; while a sale of 1 unit of P and 2 units of Q yields
a profit of KES4,400.

The profit functions for products P and Q are p = 2,400q – 3q2 and Q = 1,800q – 2q2 respectively.

Required:
(a) Profit per unit of products P and Q at the current production levels of 200 units of P and 250 units of Q.
(6 marks)

(b) Production level of products P and Q that yields maximum profit. (8 marks)

(c) Maximum profit at the production levels in (b) above for both products P and Q. (4 marks)

(d) Additional units to the current production level to attain the level that maximizes profit for both products
P and Q. (2 marks)
(Total: 20 marks)
…………………………………………………………………………….

ke
o.
i.c
op
.ch
w
w
w

CM14 Page 7
Out of 7
 CAMS LEVEL I

FUNDAMENTALS OF BUSINESS MATHEMATICS

TUESDAY: 2 August 2022. Afternoon paper Time Allowed: 2 hours.

This paper is made up of fifty (50) Multiple Choice Questions. Answer ALL questions by indicating the letter (A, B,
C or D) that represents the correct answer. Do NOT write anything on this paper.

1. Find the value of;

x + y2 + w(2x + y)
2y - 1/2xw

If x = w-1, w = 4, y = w + x
A. 13
B. 10
C. 8
D. 14 (2 marks)

2. Simplify:
e
.k
4(3x + 2y) – 3(2x – y)
.co
A. 12x + 11y
B. 11x + 6y
C. 6x - 11y
pi

D. 6x + 11y (2 marks)
ho

3. A businessman borrowed Sh.3,200,000 from Inua bank at a simple interest rate of 14% per annum with a
repayment period of 3 years. Calculate the total interest paid on the loan.
C

A. Sh.134,400
B. Sh.448,000
C. Sh.1,344,000
D. Sh.4,544,000 (2 marks)

4. James Mbugua bought a motor vehicle for Sh.4,500,000. The motor vehicle depreciates at the rate of 15% per
annum. Calculate the net book value of the motor vehicle after six years using the straight line method.
A. Sh.4,050,000
B. Sh.450,000
C. Sh.675,000
D. Sh.750,000 (2 marks)

5. A factory hires 15 men to complete a piece of work in 24 days. How many more men are needed to complete the
work in 10 days?
A. 21
B. 36
C. 12
D. 10 (2 marks)

6. The mean ages of six students is 30 years. The ages of five of the students are 25,37,32,27 and 34 years.
Find the modal age of the six students.
A. 25
B. 27
C. 34
D. 32 (2 marks)
CM14 Page 1
Out of 7
7. The table below shows the size of shoes made in one week in a shop.
Shoe size 3 4 5 6 7 8 9
Sales made 21 12 18 5 6 3 1

Find the mean shoe size.

A. 4.6
B. 3.8
C. 9
D. 4 (2 marks)

8. There are 180 male students and 240 female students in Bidii College of Accountancy. Determine the ratio of male
to female students as a fraction expressed in its simplest form.
A. 1
4
B. 2
3
C. 5
8
D. 3
4 (2 marks)

9. Increase 480 in the ratio of 6:5.

A. 563
B. 576
C. 400
D. 476 (2 marks)

10. The number of Covid-19 pandemic cases reported in the country decreased to 480 from 540 in the month of April

ke
2022. What was the ratio decrease?

o.
i.c
A. 4:7

op
B. 8:9

.ch
w
C. 9:8

w
w
D. 4:9 (2 marks)

11. Work out;

1½ – ¼ x 1⅓
⅓+⅙÷½
A. 11/6
B. 12/3
C. 13/4
7
D. /9 (2 marks)

12. In an agricultural show held in Kilimo farm ⅓ of the participants took orange juice, ⅖ of the remainder took apple
juice while the rest took passion juice. What fraction took passion juice?
A. 1
3
B. 2
3
C. 4
15
D. 2
5 (2 marks)

13. Workout:
6.25 × 4.8 ×0.6
0.25 × 9.6 × 0.2
A. 3750
B. 37.5
C. 3.75
D. 18.75 (2 marks)

CM14 Page 2
Out of 7
14. The price of a jacket was increased by Sh.400. If this was a 20% increase, what was the price of the jacket before
the price increase.
A. Sh.2,400
B. Sh.1,800
C. Sh.1,600
D. Sh.2,000 (2 marks)

15. Duncan Maina is three times as old as his sister. Ten years ago, their total age was 24 years. How old will Duncan
be in 3 years’ time?
A. 36 years
B. 14 years
C. 11 years
D. 33 years (2 marks)

16. Mercy Mulwa bought a watch for Sh.342 after she was allowed a discount. If the marked price was Sh.360, what
was the percentage discount?
A. 5%
B. 18%
C. 22%
D. 61/9% (2 marks)

17. The ratio of men to women in a meeting was 4:5. There are 70 more women than men in the meeting. How many
women were there?
A. 350
B. 630
C. 280
D. 400 (2 marks)

18.
e
After paying a commission of 7% of the price of a vehicle to an agent, the owner of the vehicle was left with
Sh.232,500. How much was paid to the agent.
.k
A. Sh.17,500
.co
B. Sh.17,275
C. Sh.16,275
pi

D. Sh.25,000 (2 marks)
ho

19. Data that has been previously gathered and can be accessed by researchers is referred to as:
A. Primary data
B. Published data
C

C. Secondary data
D. Research (2 marks)

20. Stephen Yegon paid Sh.1,800 for an item after he was allowed a discount of 10%. How much was the marked
price of the item.
A. Sh.2,000
B. Sh.1,980
C. Sh.1,620
D. Sh.2,180 (2 marks)

21. Simplify;
½ (2x – 14y – 6) + ¼ (8x + 36y + 12)

A. 3x + 2y - 6
B. 3x + 2y + 6
C. 3x + 2y
D. 3x + 16y + 6 (2 marks)

22. A man deposited Sh.60,000 in a bank account. After 21/2 years, he withdrew a total of Sh.68,250. At what rate per
annum was the money earning the interest.
A. 51/2 %
B. 5%
C. 11.4%
D. 71/2% (2 marks)
CM14 Page 3
Out of 7
23. Round off 499.9972 to the nearest hundredths.
A. 499.99
B. 499.00
C. 500.10
D. 500.00 (2 marks)

24. The pie chart below shows how students at Tumaini College chose their favourite sports:

Volley ball Handball

900 360

Football 1140 Rugby

If 18 students chose football, what is the total number of students taking sports?
A. 36
B. 48
C. 54
D. 60 (2 marks)

25. Grace, Alice and John are in a partnership business. They share profits in the ratio of 3:4:3. The partnership made a
profit of Sh.1,540,000 in the financial year ended 30 June 2022. Calculate the share of profits received by Alice.
A. Sh.154,000
B. Sh.308,000

ke
o.
C. Sh.616,000

i.c
op
D. Sh.462,000 (2 marks)

.ch
w
w
w
26. Jane deposited Sh.700,000 in a fixed deposit account which offers a compound interest of 5% per annum.
Calculate the amount received by Jane after the maturity period of 4 years.
A. Sh.850,854.38
B. Sh.150,854.38
C. Sh.140,000
D. Sh.840,000 (2 marks)

27. The incentive offered by a seller to the buyer to encourage bulk buying is referred to as?
A. Cash discount
B. Quantity discount
C. Special offer
D. Margin (2 marks)

28. Which of the following is not a measure of dispersion?

A. Variance
B. Range
C. Quartile deviation
D. Harmonic mean (2 marks)

29. Determine the median value of the following data:

12,15,22,30,18
A. 18
B. 15
C. 30
D. 22 (2 marks)

30. The data value with the highest frequency in a set of data is referred to as?
A. Mean
B. Median
C. Outlier
D. Mode (2 marks)
CM14 Page 4
Out of 7
31. Which of the following is not a method of data collection?
A. Questionnaire
B. Sampling
C. Observation
D. Interview (2 marks)

32. Which of the following sampling methods is a probability method?

A. Judgement
B. Quota sampling
C. Simple random sampling
D. Convenience sampling (2 marks)

33. The graph obtained by joining the mid-points of the top horizontal parts of adjacent rectangles in a histogram is
referred to as?
A. Ogive
B. Pie-chart
C. Bar chart
D. Frequency polygon (2 marks)

34. The difference between the upper and lower class boundaries of a class are known as?
A. Class mid-point
B. Class mark
C. Class frequency
D. Class interval (2 marks)

35. It two events are such that the occurrence or non-occurrence of one event affects the occurrence or non-occurrence
of the other event, the two events are said to be?
A. Mutually exclusive events
B. Collectively exhaustive events
e
.k
C. Independent events
.co
D. Dependent events (2 marks)

36. The probability of two events happening together is referred to as?

pi

A. Joint probability
B. Conditional probability
ho

C. Bayes theorem
D. Marginal probability (2 marks)
C

37. Two events are said to be independent.

A. If they cannot happen together
B. If the occurrence or non-occurrence of one affects the occurrence or non-occurrence of the other.
C. If the occurrence or non-occurrence of one does not affect the occurrence or non-occurrence of the other.
D. If the occurrence of one event prevents the occurrence of the other event (2 marks)

38. There are 3 apples, 4 oranges and 6 mangoes in a shopping basket. What is the probability of picking a mango?

A. 3
13
B. 4
13
C. 6
13
D. 4
10 (2 marks)

CM14 Page 5
Out of 7
39. Solve the following simultaneous equations;
2x + 4y = 1
5x – y = 8

A. x = 1.5
y = -0.5
B. x = 1.5
y = 0.5
C. x = 0.5
y = -1.5
D. x = -1.5
y = -0.5 (2 marks)

40. Differentiate the following equation with respect to x.

Y = - 3x3 + 3x2 - x + 20

A. δy = - 9x3 + 6x -1
δx
B. δy = - 9x2 + 6x -1
δx
C. δy = - 9x2 + 6x -21
δx
D. δy = - 9x2 + 6x
δx (2 marks)

41. Profit expressed as a percentage of sales is referred to as?

A. Mark up

ke
B. Margin

o.
i.c
C. Gross profit

op
D. Net profit (2 marks)

.ch
w
w
w
42. Given the profit margin of an item is 2/7, calculate the profit mark up.
A. 2
3
B. 2
9
C. 2
5
D. 2
7 (2 marks)

43. An employee earns a taxable income of Sh.30,000 per month. If the rate of tax is 12%, calculate the net income.
A. Sh.3,600
B. Sh.26,400
C. Sh.33,600
D. Sh.43,200 (2 marks)

44. A company pays its casual employees on an hourly rate of Sh.320 per hour. If Phillip Ochieng’ worked for 42
hours in a certain week, calculate the gross pay.
A. Sh.14,000
B. Sh.67,200
C. Sh.13,440
D. Sh.94,080 (2 marks)

45. Robert Wambua purchased a book at Sh.375. He intends to make a profit mark up of 30% on sale of the book.
Calculate his selling price.
A. Sh.112.50
B. Sh.262.50
C. Sh.461.54
D. Sh.487.50 (2 marks)

CM14 Page 6
Out of 7
46. Round off the following number to three decimal places 29.99999999.
A. 30.999
B. 29.999
C. 30.000
D. 30.001 (2 marks)

47. Convert 5/8 into a percentage.

A. 62.5%
B. 37%
C. 63%
D. 40% (2 marks)

48. Frequency tables is an arrangement of data by ______________________and their corresponding _____________

A. Classes, frequencies
B. Frequencies, interval
C. Classes, categories
D. None of the above (2 marks)

49. The probability of a sure event is given by.

A. 0
B. 1
C. -1
D. ∞ (2 marks)

50. Given that A= 5 6 B= 7 12

9 10 4 9

e
Find A + B
.k
.co

A. 7 12
4 9
pi
ho

B. 12 18
13 19
C

C. 12 10
13 19

D. (2 marks)
12 21
10 19

……………………………………………………………………

CM14 Page 7
Out of 7
w
w
w
.ch
op
i.c
o.
ke
C
ho
pi
.co
.k
e
w
w
w
.ch
op
i.c
o.
ke
C
ho
pi
.co
.k
e
w
w
w
.ch
op
i.c
o.
ke
C
ho
pi
.co
.k
e
w
w
w
.ch
op
i.c
o.
ke
C
ho
pi
.co
.k
e
w
w
w
.ch
op
i.c
o.
ke
C
ho
pi
.co
.k
e
w
w
w
.ch
op
i.c
o.
ke
C
ho
pi
.co
.k
e
w
w
w
.ch
op
i.c
o.
ke
C
ho
pi
.co
.k
e
w
w
w
.ch
op
i.c
o.
ke
C
ho
pi
.co
.k
e
w
w
w
.ch
op
i.c
o.
ke
C
ho
pi
.co
.k
e
w
w
w
.ch
op
i.c
o.
ke
C
ho
pi
.co
.k
e
w
w
w
.ch
op
i.c
o.
ke
C
ho
pi
.co
.k
e
w
w
w
.ch
op
i.c
o.
ke
C
ho
pi
.co
.k
e
w
w
w
.ch
op
i.c
o.
ke
C
ho
pi
.co
.k
e
w
w
w
.ch
op
i.c
o.
ke
C
ho
pi
.co
.k
e
w
w
w
.ch
op
i.c
o.
ke
C
ho
pi
.co
.k
e
w
w
w
.ch
op
i.c
o.
ke
C
ho
pi
.co
.k
e
w
w
w
.ch
op
i.c
o.
ke
C
ho
pi
.co
.k
e
w
w
w
.ch
op
i.c
o.
ke
C
ho
pi
.co
.k
e
w
w
w
.ch
op
i.c
o.
ke
C
ho
pi
.co
.k
e
w
w
w
.ch
op
i.c
o.
ke
C
ho
pi
.co
.k
e
w
w
w
.ch
op
i.c
o.
ke
C
ho
pi
.co
.k
e