a) Distinguish between the following i) Arithmetic progression and geometric progression (2 marks ).

a) Distinguish between the following

i) Arithmetic progression and geometric progression (2 marks ) ii) Simple interest and compound interest (2 marks )

b) A firm is thinking of buying a machine costing $ 200,000 and the expected net cash flow are:-

Year 1 2 3 4 5

Net cash flow 50,000 55,00065,00075,00075,000

Using a discount rate of 10% calculate the percentage return over the 5 years on the

original investment. (5 marks )

c) A College offers a number of subjects namely Accounts, Secretarial, Computer studies and others. The HOD of one of the subject areas is concerned about the low enrolment in his subject area. I a recent survey of 200 students, the number of students who took the various courses were found to be as follows:-

Subject No. of Students

Accounts 56

Accounts & Secretarial 16

Accounts & Computer studies 20

Secretarial & Computer studies 10

Computer studies 84

Accounts, Secretarial & Computer studies 6

d) Determine the number of students who took the other subjects ( use Venn diagram)(6 marks )

e) A business man invested the same amount of money in two different banks at the same rate of interest on bank paid compound interest and the other simple interest. After 2 years the interest earned was Sh.920.25 and Sh.900 respectively. What was the principal and rate of

interest. (5 marks )