Statistics & Applications

Financial Math

Medium

applied

At 6% converted quarterly, the present value of a perpetuity of ₹ 900 payable at the end of each quarter is:

₹ 40000

₹ 42000

₹ 60000

₹ 6000

✅ Correct Option: 3

The interest rate is 6% per year, converted quarterly. This means the annual rate is compounded 4 times a year.

The quarterly interest rate is:

$i = \frac{6\%}{4}$

$i = 1.5\%$

$i = 0.015$

For a perpetuity with payment $R$ per period and interest rate $i$ per period, the present value formula is:

$PV = \frac{R}{i}$

Where:

$R = ₹900$ (quarterly payment)

$i = 0.015$ (quarterly interest rate)

Substituting the values:

$PV = \frac{900}{0.015}$

$PV = ₹60,000$

Therefore, the present value of the perpetuity is ₹60,000.

2025: 2 June Shift 1

Maneesh took a loan of ₹ 9,00,800 from bank at an interest rate of 6% per annum for 10 years. If she has to pay the loan back with the help of equal monthly installments (EMI). Then, the EMI using reduced balance method is (approx):

[Given: $(1.005)^{-120}=0.5496$ ]

2025: 2 June Shift 1

The amount of money needed to ensure for a prize of ₹ 5000 at the begining of each year indefinitely if money is worth 5% compounded annually is:

2024: 16 May Shift 1

Match List-I with List-II:

List-I Property Type	List-II EMI amount (in ₹)
(A) P	(I) 25,600
(B) Q	(II) 38,400
(C) R	(III) 32,000
(D) S	(IV) 35,200

2025: 27 May Shift 1

As per the graph given below:

Match List-I with List-II

List-I	List-II
(Function/Area/point)	(Representation)
(A) Consumers Surplus	(I) y=g(x)
(B) Supply function	(II) v
(C) Demand function	(III) s
(D) Equilibrium point	(IV) y=f(x)

Choose the correct answer from the options given below:

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: 19 May Shift 1

Match List-I with List-II

List-I	List-II
(A) It is the amount the bond issuer pays at maturity.	(I) Coupon rate
(B) It is the rate at which a bond yield interest.	(II) Face value
(C) It is the annual interest rate paid by the bond issuer to the bond holder.	(III) Nominal rate of interest
(D) The price at which the bond is sold to buyers at the time of issue.	(IV) Redemption price

Choose the correct answer from the options given below:

At 6% converted quarterly, the present value of a perpetuity of ₹ 900 payable at the end of each quarter is:

Solution

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