Samacheer Kalvi solutions for Business Mathematics and Statistics [English] Class 11 TN Board chapter 7 - Financial Mathematics [Latest edition]

Find the amount of an ordinary annuity of ₹ 3,200 per annum for 12 years at the rate of interest of 10% per year. [(1.1)¹² = 3.1384]

If the payment of ₹ 2,000 is made at the end of every quarter for 10 years at the rate of 8% per year, then find the amount of annuity. [(1.02)⁴⁰ = 2.2080]

Find the amount of an ordinary annuity of 12 monthly payments of ₹ 1,500 that earns interest at 12% per annum compounded monthly. [(1.01)¹² = 1.1262]

A bank pays 8% per annum interest compounded quarterly. Find the equal deposits to be made at the end of each quarter for 10 years to have ₹ 30,200? [(1.02)⁴⁰ = 2.2080]

A person deposits ₹ 2,000 at the end of every month from his salary towards his contributory pension scheme. The same amount is credited by his employer also. If 8% rate of compound interest is paid, then find the maturity amount at end of 20 years of service. [(1.0067)²⁴⁰ = 4.9661]

Find the present value of ₹ 2,000 per annum for 14 years at the rate of interest of 10% per annum. If the payments are made at the end of each payment period. [(1.1)^–14 = 0.2632]

Find the present value of an annuity of ₹ 900 payable at the end of 6^th month for 6 years. The money compounded at 8% per annum. [(1.04)^–12 = 0.6252]

Find the amount at the end of 12 years of an annuity of ₹ 5,000 payable at the beginning of each year, if the money is compounded at 10% per annum. [(1.1)¹² = 3.1384]

What is the present value of an annuity due of ₹ 1,500 for 16 years at 8% per annum? What is the present value of an annuity due of ₹ 1,500 for 16 years at 8% per annum? [(1.08)¹⁶ = 3.172]

What is the amount of perpetual annuity of ₹ 50 at 5% compound interest per year?

Find the market value of 62 shares available at ₹ 132 having the par value of ₹ 100.

How much will be required to buy 125 of ₹ 25 shares at a discount of ₹ 7?

If the dividend received from 9% of ₹ 20 shares is ₹ 1,620, then find the number of shares.

Mohan invested ₹ 29,040 in 15% of ₹ 100 shares of a company quoted at a premium of 20%. Calculate

1. the number of shares bought by Mohan
2. his annual income from shares
3. the percentage return on his investment

A man buys 400 of ₹ 10 shares at a premium of ₹ 2.50 on each share. If the rate of dividend is 12%, then find

1. his investment
2. annual dividend received by him
3. rate of interest received by him on his money

Sundar bought ₹ 4,500, 12% of ₹ 10 shares at par. He sold them when the price rose to ₹ 23 and invested the proceeds in ₹ 25 shares paying 10% per annum at ₹ 18. Find the change in his income.

A man invests ₹ 13,500 partly in 6% of ₹ 100 shares at ₹ 140 and the remaining in 5% of ₹ 100 shares at ₹ 125. If his total income is ₹ 560, how much has he invested in each?

Babu sold some ₹ 100 shares at 10% discount and invested his sales proceeds in 15% of ₹ 50 shares at ₹ 33. Had he sold his shares at 10% premium instead of 10% discount, he would have earned ₹ 450 more. Find the number of shares sold by him.

Which is better investment? 7% of ₹ 100 shares at ₹ 120 (or) 8% of ₹ 100 shares at ₹ 135.

Which is better investment? 20% stock at 140 (or) 10% stock at 70.

The dividend received on 200 shares of face value ₹ 100 at 8% is __________.

What is the amount realised on selling 8% stock of 200 shares of face value ₹ 100 at ₹ 50?

A man purchases a stock of ₹ 20,000 of face value ₹ 100 at a premium of 20%, then investment is ___________.

If a man received a total dividend of ₹ 25,000 at 10% dividend rate on a stock of face value ₹ 100, then the number of shares purchased.

The brokerage paid by a person on the sale of 400 shares of face value ₹ 100 at 1% brokerage __________.

Purchasing price of one share of face value ₹ 100 available at a discount of `9 1/2%` with brokerage `1/2%` is ____________.

A person brought 100 shares of 9% stock of face value ₹ 100 at a discount of 10%, then the stock purchased is ____________.

The % of income on 7% stock at ₹ 80 is ___________.

The annual income on 500 shares of face value ₹ 100 at 15% is ___________.

₹ 5000 is paid as perpetual annuity every year and the rate of C.I. 10%. Then present value P of immediate annuity is __________.

If ‘a’ is the annual payment, ‘n’ is the number of periods and ‘i’ is compound interest for ₹ 1 then future amount of the ordinary annuity is

A invested some money in 10% stock at ₹ 96. If B wants to invest in an equally good 12% stock, he must purchase a stock worth of ____________.

An annuity in which payments are made at the beginning of each payment period is called ___________.

The present value of the perpetual annuity of ₹ 2000 paid monthly at 10% compound interest is ___________.

Example of contingent annuity is ___________.

Find the amount of annuity of ₹ 2000 payable at the end of each year for 4 years of money is worth 10% compounded annually. [(1.1)⁴ = 1.4641]

An equipment is purchased on an installment basis such that ₹ 5000 on the signing of the contract and four-yearly installments of ₹ 3000 each payable at the end of first, second, third and the fourth year. If the interest is charged at 5% p.a find the cash down price. [(1.05)^–4 = 0.8227]

Find the amount of an ordinary annuity of ₹ 500 payable at the end of each year for 7 years at 7% per year compounded annually. [(1.07)⁷ = 1.6058]

Calculate the amount of an ordinary annuity of ₹ 10,000 payable at the end of each half-year for 5 years at 10% per year compounded half-yearly. [(1.05)¹⁰ = 1.6289]

Find the amount of an ordinary annuity of ₹ 600 is made at the end of every quarter for 10 years at the rate of 4% per year compounded quarterly. [(1.01)⁴⁰ = 1.4889]

Find the amount of an annuity of ₹ 2000 payable at the end of every month for 5 years if money is worth 6% per annum compounded monthly. [(1.005)⁶⁰ = 1.3489]

Naveen deposits ₹ 250 at the end of each month in an account that pays an interest of 6% per annum compounded monthly, how many months will be required for the deposit to amount to at least ₹ 6390? [log(1.1278) = 0.0523, log(1.005) = 0.0022]

A cash prize of ₹ 1,500 is given to the student standing first in examination of Business Mathematics by a person every year. Find out the sum that the person has to deposit to meet this expense. Rate of interest is 12% p.a.

Machine A costs ₹ 15,000 and machine B costs ₹ 20,000. The annual income from A and B are ₹ 4,000 and ₹ 7,000 respectively. Machine A has a life of 4 years and B has a life of 7 years. Find which machine may be purchased. (Assume discount rate 8% p.a) [(1.08)^–4 = 0.7350, (1.08)^–7 = 0.5835]

Vijay wants to invest ₹ 27,000 in buying shares. The shares of the following companies are available to him. ₹ 100 shares of company A at par value; ₹ 100 shares of company B at a premium of ₹ 25; ₹ 100 shares of company C at a discount of ₹ 10; ₹ 50 shares of company D at a premium of 20%. Find how many shares will he get if he buys shares of

1. Company A
2. Company B
3. Company C
4. Company D

Gopal invested ₹ 8,000 in 7% of ₹ 100 shares at ₹ 80. After a year he sold these shares at ₹ 75 each and invested the proceeds (including his dividend) in 18% for ₹ 25 shares at ₹ 41. Find

1. his dividend for the first year
2. his annual income in the second year
3. The percentage increase in his return on his original investment

A man sells 2000 ordinary shares (par value ₹ 10) of a tea company which pays a dividend of 25% at ₹ 33 per share. He invests the proceeds in cotton textiles (par value ₹ 25) ordinary shares at ₹ 44 per share which pays a dividend of 15%. Find

1. the number of cotton textiles shares purchased and
2. change in his dividend income.

The capital of a company is made up of 50,000 preferences shares with a dividend of 16% and 25,000 ordinary shares. The par value of each of preference and ordinary shares is ₹ 10. The company had a total profit of ₹ 1,60,000. If ₹ 20,000 were kept in reserve and ₹ 10,000 in depreciation, what percent of dividend is paid to the ordinary shareholders.