#### Financial Mathematics Model Question Paper

11th Standard

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Time : 02:00:00 Hrs
Total Marks : 50
5 x 1 = 5
1. The dividend received on 200 shares of face value Rs.100 at 8% dividend value is

(a)

1600

(b)

1000

(c)

1500

(d)

800

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

(a)

Rs 20,000

(b)

Rs 25,000

(c)

Rs 22,000

(d)

Rs 30,000

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

(a)

Rs 9000

(b)

Rs 6000

(c)

Rs 5000

(d)

Rs 4000

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

(a)

Annuity due

(b)

An immediate annuity

(c)

perpetual annuity

(d)

none of these

5. Example of contingent annuity is

(a)

(b)

An endowment fund to give scholarships to a student

(c)

Personal loan from a bank

(d)

All the above

6. 5 x 2 = 10
7. Find the present value of Rs 2,000 per annum for 14 years at the rate of interest of 10% per annum. [ (1.1)–14 = 0.2632]

8. A man buys 500 shares of amount Rs 100 at Rs 14 below par. How much money does he pay?

9. A person brought at 12% stock for Rs 54,000 at a discount of 17%. If he paid 1% brokerage, find the percentage of his income.

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

11. A cash prize of Rs 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

12. 5 x 3 = 15
13. The age of the daughter is 2 years. Her father wants to get Rs 20,00,000 when his ward becomes 22 years He opens an account with a bank at 10% rate of compound interest. What amount should he deposit at the end of every month in this recurring account [(1.0083)240 = 6.194].

14. If the payment of Rs 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 ]

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

16. A capital company is made up of 1,00,000 preference shares with a dividend of 16% and 50,000 shares. The par value of each of preference and ordinary shares is Rs 10. The total profit of a company is Rs 3,20,000. If Rs 40,000 were kept in reserve and Rs 20,000 were kept in depreciation fund, what percent of dividend is paid to the ordinary share holders

17. A man buys 400 of Rs 10 shares at a premium of Rs 2.50 on each share. If the rate of dividend is 12% find
(i) his investment
(ii) annual dividend received by him
(iii) rate of interest received by him on his money

18. 4 x 5 = 20
19. A person sells a 20% stock of face value Rs 10,000 at a premium of 42%. With the money obtained he buys a 15% stock at a discount of 22%. What is the change in his income if the brokerage paid is 2%.

20. Machine A costs Rs15,000 and machine B costs Rs 20,000. The annual income from A and B are Rs 4,000 and Rs 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)

21. A man sells 2000 ordinary shares (par value Rs 10) of a tea company which pays a dividend of 25% at Rs 33 per share. He invests the proceeds in cotton textiles (par value Rs 25) ordinary shares at `44 per share which pays a dividend of 15%. Find
(i) the number of cotton textiles shares purchased and
(ii) change in his dividend income.

22. The capital of a company is made up of 50,000 preferences shares with a dividend of 16% and 2,500 ordinary shares. The par value of each of preference and ordinary shares is Rs 10. The company had a total profit of Rs. 1,60,000. If Rs 20,000 were kept in reserve and Rs 10,000 in depreciation, what percent of dividend is paid to the ordinary share holders