CBSE Class 12 Applied Mathematics — Financial Mathematics

The present value of a perpetuity of Rs R payable at the end of each period, when the money is worth i per period is :

Using flat rate method, the EMI to repay a loan of Rs 20,000 in $2\frac{1}{2}$ years at an interest rate of 8% per annum is :

If an investment of Rs 10,000 becomes Rs 60,000 in 4 years, then the Compound Annual Growth Rate (CAGR) is :

A machine costs Rs 45,000 with an estimated useful life of 5 years and a scrap value of Rs 10,000. The annual depreciation of the machine is :

Assertion (A) : In sinking fund, a fixed amount at regular intervals is deposited. Reason (R) : In Savings Bank Account, any amount, any time can be deposited.

A man takes a personal loan of Rs 2,00,000 at an interest rate of 15% p.a. compounded monthly, to be repaid by equal monthly instalments in 4 years. Calculate the EMI, using reducing balance method. [Given : $(1.0125)^{-48} = 0.55$]

A company XYZ Ltd. has issued a bond having a face value of Rs 10,000 paying annual dividend at 8.5% p.a. The bond will be redeemed at par at the end of 10 years. Find the purchase value of this bond, if the investor wishes a yield rate of 8%. [Given : $(1.08)^{-10} = 0.46319349$]

Mr. Arya wants to know the amount he should pay for a gold mine expected to yield an annual return of Rs 4 lakh for the next 10 years, after which it will be worthless. Find the amount he should pay for the mine, if he wants to yield 18% annual return on his investment and also set up a sinking fund to replace the purchase price. Assume that the sinking fund earns 10% annually. [Use $(1.1)^{10} = 2.5937$]