Kasneb business mathematics past paper
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ACCOUNTING TECHNICIANS DIPLOMA (ATD)
LEVEL II
BUSINESS MATHEMATICS AND STATISTICS
TUESDAY: 21 April 2026. Morning Paper. Time Allowed: 3 hours.
This paper consists of fifty (50) Multiple Choice Questions. ALL questions by indicating the letter (A,
B, C or D) that represents the correct . Each question is allocated two (2) marks.
1. A trader borrows Sh.250,000 at 12% per annum simple interest for 18 months. Calculate the total amount payable by
the trader.
A. Sh.295,000
B. Sh.300,000
C. Sh.295,500
D. Sh.300,500 (2 marks)
Use the following information to answer Question 2 to Question 5.
A wholesaler recorded the following prices and quantities for selected commodities in the years 2024 and 2025:
Commodity
2024
2025
Price (Sh.)
Quantity (kg)
Price (Sh.)
Quantity (kg)
Maize flour
120
80
150
70
Sugar
200
60
240
55
Cooking oil
300
40
330
50
2. Calculate the Laspeyres Price Index for 2025 using 2024 as the base year.
A. 121.30
B. 125.00
C. 116.25
D. 117.86 (2 marks)
3. Determine the Paasche Price Index for 2025.
A. 119.72
B. 116.86
C. 118.46
D. 124.10 (2 marks)
4. Compute Fisher’s Ideal Price Index.
A. 120.38
B. 121.30
C. 117.36
D. 122.15 (2 marks)
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5. Based on Fisher’s index obtained in question 4, which of the following is a CORRECT assessment of the price
movement.
A. Prices decreased
B. Prices increased by approximately 17%
C. Prices doubled
D. Prices remained constant (2 marks)
6. Find the median of the following data: 5, 8, 12, 15, 20.
A. 8
B. 10
C. 12
D. 15 (2 marks)
7. If P(A) = 0.72, calculate P(A′).
A. 0.28
B. 0.32
C. 0.18
D. 0.72 (2 marks)
8. Solve the quadratic equation x² − 9x + 20 = 0.
A. 4 and 5
B. 2 and 10
C. 1 and 20
D. 5 and 10 (2 marks)
9. Compute the determinant of the matrix 3 2
5 4
A. 2
B. –2
C. 7
D. 1 (2 marks)
10. If the Consumer Price Index rises from 120 to 132, calculate the percentage increase in cost of living.
A. 8%
B. 10%
C. 12%
D. 15% (2 marks)
Use the following information to answer Question 11 to Question 13.
A savings society lends Sh.500,000 at 8% per annum compounded annually for 3 years.
11. Calculate the accumulated amount after 3 years.
A. Sh.629,856
B. Sh.620,000
C. Sh.640,000
D. Sh.650,000 (2 marks)
12. Determine the compound interest earned.
A. Sh.129,856
B. Sh.120,000
C. Sh.150,000
D. Sh.100,000 (2 marks)
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13. Estimate the present value rounded to the nearest thousands of Sh.700,000 due after 3 years at the same rate.
A. Sh.540,000
B. Sh.555,000
C. Sh.556,000
D. Sh.560,000
(2 marks)
14. A business has weekly sales with a mean of Sh.80,000 and a standard deviation of Sh.16,000. Calculate the coefficient
of variation.
A. 25%
B. 20%
C. 16%
D. 5% (2 marks)
15. Investment A has a mean return of 12% and a standard deviation 3% while investment B has a mean return 15% and
a standard deviation 6%. Determine which investment is more consistent.
A. Option A
B. Option B
C. Both are equally consistent
D. Cannot be determined (2 marks)
16. The marks scored by students are 20, 25, 30, 35 and 90. Explain why range may not be appropriate.
A. Uses all observations
B. Measures central tendency
C. Depends only on two observations
D. Eliminates extreme values (2 marks)
17. Find ⁶C₂.
A. 15
B. 30
C. 12
D. 20 (2 marks)
Use the following information to answer Question 18 to Question 20.
A business has fixed costs of Sh.200,000. The selling price per unit is Sh.100 and variable cost per unit is Sh.60.
18. Calculate the contribution per unit.
A. 40
B. 60
C. 100
D. 160 (2 marks)
19. Determine the break-even point in units.
A. 4,000
B. 5,000
C. 3,000
D. 2,000 (2 marks)
20. Compute the break-even sales revenue.
A. 400,000
B. 500,000
C. 300,000
D. 200,000 (2 marks)
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