Applied Mathematics

Financial Mathematics

Medium

applied

A company intends to create a sinking fund to replace at the end of 20 $^{th}$ year assets costing Rs. 2,50,000. Then the value of the amount to be retained out of profits every year if the interest rate is 5% is : [Given $(1.05)^{20} = 2.6532$ ]

Rs. 7,156.09

Rs. 7,599.09

Rs. 7,561.09

Rs. 7,651.09

✅ Correct Option: 3

Sinking fund: $A \times \frac{(1+r)^n - 1}{r} = FV$ . So $A \times \frac{2.6532 - 1}{0.05} = 250000$ . $A \times 33.064 = 250000$ , giving $A \approx 7561.09$ .

2026: 14 May Shift 2

The present value of an immediate perpetuity of ₹ R payable at the end of every year at the rate of i per period per rupee is given by:

2023: 22 May Shift 3

The effective rate equivalent to a nominal rate of 8% per annum compounded semi annually is :

2023: 15 June Shift 2

If Mr. Ravi borrows a sum of ₹ 1,50,000 at an interest rate of 10% (flat) for a tenure of 3 years, then his EMI based on above data is (approximately) ₹ :

2023: 22 May Shift 3

Ravi takes a loan of Rs. 40,000 at an interest of 12% per annum for a period of 4 year, then EMI by using flat method is :

2026: 29 May Shift 2

Which of the following is true about the sinking fund ?

2023: 15 June Shift 2

The present value of a perpetual income of ₹ $x$ payable at the end of each 6 months is ₹ 1,80,000. If the money is worth 5% compounded semi-annually, then the value of $x$ is ₹ :

A company intends to create a sinking fund to replace at the end of 20th^{th}th year assets costing Rs. 2,50,000. Then the value of the amount to be retained out of profits every year if the interest rate is 5% is : [Given (1.05)20=2.6532(1.05)^{20} = 2.6532(1.05)20=2.6532]

Solution

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CUET Mathematics Past Year Questions (Topic-Wise)

A company intends to create a sinking fund to replace at the end of 20 $^{th}$ year assets costing Rs. 2,50,000. Then the value of the amount to be retained out of profits every year if the interest rate is 5% is : [Given $(1.05)^{20} = 2.6532$ ]