MATHMATICS OF FINANCE

The Nominal rate of interest is 10% per annum. The

interest is compounded quarterly. The effective rate of

interest per annum will be.

• 10%

• 10.40%

• 10.25%

• 𝟏𝟎. 𝟑𝟖%

A car is available for 4,98,200 cash payment on

60,000 cash down payment followed by 3 equal annual

instalments of the rate of interest charged is 14% p.a.

compounded yearly. Total interest changed is instalment

plans is (Given P (3,0.14) = 2.32163)

• 1,46,137

• 1,46,314

• 1,28,040

• 1,58,040

If the discount rate is 10% per annum. How much

amount would you pay to receive 2,500 growing at 8%

annually forever?

• 1,25,000

• 2,50,000

• 1,50,000

• 2,00,000

The compound interest on 15,625 for 9 months at

16% per annum compounded quarterly is

• 1,851

• 1,941

• 1,951

• 1,961

Mr. Sharad got his retirement benefit amounting to

50,00,000. He wants to receiver a fixed monthly sum of

amount for his rest of life, starting after 1 month & there

after he want to pass on same to future generation. He

expects to earn an interest of 9% compounded annually.

Determine how much perpetuity amount he will receive

every month?

• 9,500

• 38,500

• 37500

• 36,600

Jonny wants to have 2,00,000 in his saving account

after three years. Rate of interest offered by bank is 8% p.a.

compounded annually. How much should he invest today to

achieve his target amount?

• 1,47,489.10

• 1,58,766.44

• 1,71,035.59

• 1,84,417.96

Suppose you have decided to make a SIP in a mutual

fund with 1,00,000 p.a. from today for next 10 years @10%

p.a. compounded annually. What is the future value of this

annuity? Given 1.110 = 2.59374

• 17,35,114

• 17,53,411

• 17,35,411

• 17,53,114

A machine depreciates at 10% of its value at

beginning of a year. The cost & scrap value realized at the

time of sale being 23,240 & 9,000 respectively. For how

many years the machine was put to use?

• 7

• 8

• 9

• 10

Mr. Ram invested a total of 1 lakh in two bags for the

fixed parcel. the first bank fields @9% p.a. & 2nd bank field

11% p.a. If the total interest at the end of one year is 9.75%

p.a.. then the amount invested in these bank respectively?

• 52,500,

  47,500

• 62,500,

  37,500

• 57,500,

  42,500

• 67,500,

  32,500

The difference between compound interest and

simple interest on a certain sum of money invest for three

years at 6% p.a. is 11016. The principal is.

• 3,000

• 3,700

• 12,000

• 10,000