The amount to which ₹ 5000 will accumulate at the effective rate of 4% for 4 years and 5% for 2 years is Option 1: ₹ 8295 Option 2: ₹ 10295 Option 3: ₹ 6448 Option 4: ₹ 7295

Answer: ₹ 6448. Solution: The principal is ₹5000, which grows at 4% per year for 4 years, then at 5% per year for 2 years. The amount after the first phase becomes the principal for the second phase. For the first 4 years at 4% rate: Amount = 5000 x (1 + 4/100)^4 = 5000 x (1.04)^4 Calculating (1.04)^4: 1.04 x 1.04 = 1.0816 1.0816 x 1.04 = 1.124864 1.124864 x 1.04 = 1.16985856 Amount after 4 years: = 5000 x 1.16985856 = ₹5849.29 For the next 2 years at 5% rate, the principal is ₹5849.29: Amount = 5849.29 x (1 + 5/100)^2 = 5849.29 x (1.05)^2 Calculating (1.05)^2: 1.05 x 1.05 = 1.1025 Final amount: = 5849.29 x 1.1025 = ₹6448 Therefore, the amount accumulated is ₹6448.

Statistics & Applications

Financial Math

Medium

applied

The amount to which ₹ 5000 will accumulate at the effective rate of 4% for 4 years and 5% for 2 years is

₹ 8295

₹ 10295

₹ 6448

₹ 7295

✅ Correct Option: 3

The principal is ₹5000, which grows at 4% per year for 4 years, then at 5% per year for 2 years.

The amount after the first phase becomes the principal for the second phase.

For the first 4 years at 4% rate:

Amount $= 5000 \times (1 + \frac{4}{100})^4$

$= 5000 \times (1.04)^4$

Calculating $(1.04)^4$ :

$1.04 \times 1.04 = 1.0816$

$1.0816 \times 1.04 = 1.124864$

$1.124864 \times 1.04 = 1.16985856$

Amount after 4 years:

$= 5000 \times 1.16985856$

$= ₹5849.29$

For the next 2 years at 5% rate, the principal is ₹5849.29:

Amount $= 5849.29 \times (1 + \frac{5}{100})^2$

$= 5849.29 \times (1.05)^2$

Calculating $(1.05)^2$ :

$1.05 \times 1.05 = 1.1025$

Final amount:

$= 5849.29 \times 1.1025$

$= ₹6448$

Therefore, the amount accumulated is ₹6448.

2026: 30 May Shift 1

Amayra takes a loan of ₹5,00,000 at an interest of 10% per annum for a period of three years. The equated monthly installment (EMI) by using flat rate method, she has to pay is:

2025: 3 June Shift 1

A startup company invested ₹ 5,00,000 in shares for 4 years. The value of the investment was ₹ 5,50,000 at the end of first year, ₹ 5,25,000 at the end of third year, and on maturity, the final value stood ₹ 6,25,000. The CAGR on the investment will be :- [Given : $(1.25)^{\frac{1}{4}} = 1.06$ ]

2026: 30 May Shift 1

Match the LIST-I with LIST-II

LIST-I	LIST-II
A. The present value of a perpetuity of ₹3120 payable at the beginning of each year, if money is worth 6% effective.	I. ₹2,00,000
B. The present value of a perpetuity of ₹5,000 payable at the end of each year, if money is worth 5% compounded annually	II. ₹1,50,000
C. The present value of a sequence of payments of ₹3,000 payable at the end of each 6 months and continuing forever, if money is worth 4% compounded semi-annually.	III. ₹1,00,000
D. The present value of a perpetuity of ₹3,000 payable at the end of each quarter, if money is worth 6% compounded quarterly	IV. ₹55,120

Choose the correct answer from the options given below:

2026: 30 May Shift 2

A bond sells at discount. Which of the following is feasible?

[YTM = yield to maturity]

2025: 15 May Shift 1

Which of the following are correct about equated monthly installments (EMI)?

(A) The EMI depends on principal borrowed, rate of interest and tenure of the loan.

(B) It is a fixed amount made by borrower to the lender every month.

(D) As we pay off our loan, the outstanding principal amount decreases with every EMI in reducing balance method.

Choose the correct answer from the options given below:

2026: 21 May Shift 2

Geetansh invested ₹27,000 and it grows to ₹81,000 in 2 years. The CAGR % will be:

The amount to which ₹ 5000 will accumulate at the effective rate of 4% for 4 years and 5% for 2 years is

Solution

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