#### Financial Mathematics Three Marks Questions

11th Standard

Reg.No. :
•
•
•
•
•
•

Time : 00:45:00 Hrs
Total Marks : 30
10 x 3 = 30
1. Find the amount of an ordinary annuity of 12 monthly payments of Rs 1, 500 that earns interest at 12% per annum compounded monthly. [(1.01)12 = 1.1262 ]

2. 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 Rs 30,200? [(1.02)40 = 2.2080]

3. 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

4. Sundar bought 4,500 of Rs 10 shares, paying 2% per annum. He sold them when the price rose to Rs 23 and invested the proceeds in Rs 25 shares paying 10% per annum at Rs 18. Find the change in his income.

5. Find the amount of an annuity of Rs. 2000 payable at the end of every month for 5 years if money is worth 6% per annum compounded monthly.

6. Find the amount of 8% stock that will give an annual income of Rs.80

7. Find the purchase price of Rs.9300,8 3/4% stock at 4% discount?

8. A sum of Rs.1000 is deposited at the beginning of each quarter in a S.B. account that pays C.I 8% compounded quarterly. Find the account at the end of 3 years.

9. Find the future value of an ordinary annuity of Rs.1000 a year for 5 years for 5 years at 7% p.a compounded annually.

10. Find the rate of dividend which gives an annual income of Rs.1200 for 150 shares of face value Rs.100