Grade 12 results are out. Where to check yours

Unit notes and practice questions

Grade 12 Mathematics unit 5: Mathematical Applications in Business

Everything here is for unit 5 of the Grade 12 Mathematics textbook: what the chapter covers, the short notes, practice questions with their answers, and the lesson video where one exists.

Get it on Google Play
4
Cards
10
Practice questions on unit 5
303–413
The textbook pages for unit 5

What unit 5 covers

  1. 1.Basic Mathematical Concepts in Business
  2. 2.Time Value of Money
  3. 3.Saving, Investing and Borrowing Money
  4. 4.Taxation

Short notes for unit 5

The cards filed under this chapter on the Grade 12 Mathematics page. Open one at a time.

a⋅d=b⋅ca \cdot d = b \cdot c
aa
First extreme term11
bb
First mean term11
cc
Second mean term11
dd
Second extreme term11

When you use it

Use this relation to solve for an unknown value when two ratios are set equal, where b and d are non-zero.

Watch out

Multiply the extremes together and the means together. Multiplying terms belonging to the same ratio produces a false result.

Drafted from Grade 12 Mathematics, pages 303-413, then checked twice before it went up

Variation TypeProportionalityConstant FormConstant Property
Direct variationy∝xy \propto xy=kxy = k xRatio remains constant
Inverse variationy∝1xy \propto \frac{1}{x}xy=kx y = kProduct remains constant

When you use it

Use this reference to set up the correct variation formula based on whether two quantities vary directly or inversely.

Watch out

For inverse variation, the product of the two variables remains constant, not their quotient.

Drafted from Grade 12 Mathematics, pages 303-413, then checked twice before it went up

r=Af−AiAir = \frac{A_f - A_i}{A_i}
rr
Rate of change11
AfA_f
Final amount11
AiA_i
Original amount11

When you use it

Use this formula to calculate the relative increase or decrease of a quantity compared to its starting level.

Watch out

Always divide by the original amount in the denominator, never the final amount. A negative result represents a rate of decrease.

Drafted from Grade 12 Mathematics, pages 303-413, then checked twice before it went up

When you use it

Review this whenever forming a ratio or a rate from physical quantities given in different measurement units.

Watch out

Never divide numbers before converting both quantities into identical units. For instance, comparing 6 Birr to 50 cents requires converting 6 Birr to 600 cents first, giving 600 to 50.

Drafted from Grade 12 Mathematics, pages 303-413, then checked twice before it went up

Practice questions on unit 5

10 multiple-choice questions written against this chapter, each with its answer and the reason. Try one before you open the answer.

Question 1

Ashamo borrows Birr 18,500 at a simple interest rate of 9.5% per year for 2 years. How much interest will he pay?

  1. A.Birr 1757.50
  2. B.Birr 3515
  3. C.Birr 3700
  4. D.Birr 22015
Show the answer and why

Answer: B Birr 3515

Why

Use the simple interest formula I = Prt. Here P = 18,500, r = 9.5% = 0.095 and t = 2 years. So I = 18500 x 0.095 x 2 = 3515. The interest is Birr 3515. Birr 22015 is the total amount to repay, not the interest.

Question 2

Find the amount of turnover tax on a Birr 400,000 sale when the turnover tax rate is 2%.

  1. A.Birr 800
  2. B.Birr 4000
  3. C.Birr 8000
  4. D.Birr 80000
Show the answer and why

Answer: C Birr 8000

Why

Use Percentage = base x rate. The base is Birr 400,000 and the rate is 0.02. So 400,000 x 0.02 = 8000. The tax is Birr 8,000.

Question 3

Allocate Birr 1500 in the continued ratio 2:3:7. How much does each share receive?

  1. A.Birr 250, Birr 375 and Birr 875
  2. B.Birr 300, Birr 450 and Birr 750
  3. C.Birr 200, Birr 300 and Birr 1000
  4. D.Birr 250, Birr 500 and Birr 750
Show the answer and why

Answer: A Birr 250, Birr 375 and Birr 875

Why

First add the parts: 2 + 3 + 7 = 12. Then find the value of one part: 1500 / 12 = 125. Multiply each part by 125: 2 x 125 = 250, 3 x 125 = 375 and 7 x 125 = 875.

Question 4

Adane scored 12 goals in 4 Ethiopian premier league games. What is his average rate of goals per game?

  1. A.2 goals per game
  2. B.3 goals per game
  3. C.8 goals per game
  4. D.48 goals per game
Show the answer and why

Answer: B 3 goals per game

Why

A rate is a quotient of two quantities. Divide the goals by the games: 12 / 4 = 3. Adane scored an average of 3 goals per game.

Question 5

On a house construction plan, 1 cm on the paper represents 25 meters on the ground. What distance on the ground is represented by 3.20 cm on the paper?

  1. A.8 m
  2. B.25 m
  3. C.80 m
  4. D.800 m
Show the answer and why

Answer: C 80 m

Why

First convert 25 m to 2500 cm. Set up the proportion 1 cm / 2500 cm = 3.20 cm / x. Then x = 2500 x 3.20 = 8000 cm. Since 8000 cm = 80 m, the answer is 80 m.

Question 6

A boutique bought a T-shirt for Birr 546. It wants a markup of 30% on the selling price (retail). What is the selling price?

  1. A.Birr 546
  2. B.Birr 700
  3. C.Birr 780
  4. D.Birr 819
Show the answer and why

Answer: C Birr 780

Why

Cost is 100% - 30% = 70% of the selling price. So 546 = 0.70 x selling price. Selling price = 546 / 0.70 = Birr 780.

Question 7

During festive shopping, edible oil is sold at a 20% discount of Birr 175.00 per liter. What was the original (regular) price?

  1. A.Birr 700
  2. B.Birr 875
  3. C.Birr 900
  4. D.Birr 1000
Show the answer and why

Answer: B Birr 875

Why

The discount is 20% of the regular price, and the discount is Birr 175. So 0.20 x regular price = 175. Regular price = 175 / 0.20 = Birr 875. The selling price is then Birr 700.

Question 8

Under constant temperature, the volume of a gas is inversely proportional to its pressure. The volume is 4 m3 at a pressure of 1 kilopascal. What is the pressure when the volume is 3 m3 at the same temperature?

  1. A.0.75 kilopascal
  2. B.1.33 kilopascal
  3. C.3 kilopascal
  4. D.4 kilopascal
Show the answer and why

Answer: B 1.33 kilopascal

Why

For inverse proportion, P1 x V1 = P2 x V2. So 1 x 4 = x x 3, which gives x = 4/3 = 1.33. The volume decreased, so the pressure increased to 1.33 kilopascal.

Question 9

Tekletsadik borrowed Birr 1500 from his brother-in-law and agreed to pay back Birr 1650 one year later. What rate of simple interest is he paying?

  1. A.1.5%
  2. B.10%
  3. C.15%
  4. D.16.5%
Show the answer and why

Answer: B 10%

Why

The interest is 1650 - 1500 = Birr 150. Use r = I / (P x t) = 150 / (1500 x 1) = 0.1. So the rate is 0.1, or 10%.

Question 10

A bank pays 9.5% nominal interest compounded monthly. What is the equivalent annual (effective) rate, rounded to two decimal places?

  1. A.9.5%
  2. B.9.39%
  3. C.9.92%
  4. D.10.5%
Show the answer and why

Answer: C 9.92%

Why

Find the value of Birr 100 after one year at 9.5% compounded monthly: A = 100(1 + 0.095/12)12 = Birr 109.92. The effective rate r satisfies 1 + r = 1.0992. So r = 0.0992, which is 9.92%.

The app holds 12 questions on this unit, marked as you go. These are the first 10.

The textbook pages for unit 5

Unit 5 runs from page 303 to page 413 of the Ministry of Education edition.

Ministry of Education edition, English, 426 pages

Download the PDF

Practise this unit in the app

Temari turns this chapter into timed practice and marks it as you go, with an AI tutor to explain anything that did not land.

Start free

Temari.et is also an Android app, free on Google Play.

Sign inCreate your account