Financial Mathematics Book Back Questions

11th Standard

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Time : 00:45:00 Hrs
Total Marks : 30
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. What is the amount related is selling 8% stacking 200 shares of face value 100 at 50.

(a)

16,000

(b)

10,000

(c)

7,000

(d)

9,000

3. The Income on 7 % stock at 80 is

(a)

9%

(b)

8.75%

(c)

8%

(d)

7%

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

(a)

A = $\frac{a}{i}(1+i)(1+i)^n-1]$

(b)

A = $\frac{a}{i}[(1+i)^n-1]$

(c)

P = $\frac{a}{i}$

(d)

P = $\frac{a}{i}(1+i)[1-(1+i)^{-n}]$

5. 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

6. 3 x 2 = 6
7. A man buys 500 shares of amount Rs 100 at Rs 14 below par. How much money does he pay?

8. 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.

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

10. 3 x 3 = 9
11. A photographer purchases a camera on installments. He has to pay 7 annual installments each of Rs 36,000 right from the date of purchase. If the rate of compound interest is 16% then find the cost price (present value) of the camera. [(1.16)7 = 2.2828]

12. Find the amount at the end of 12 years of an annuity of Rs 5,000 payable at the beginning of each year, if the money is compounded at 10% per annum.

13. 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

14. 2 x 5 = 10
15. 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)

16. 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.