Statistics & Applications

Financial Math

Easy

applied

A person has an initial investment of ₹ 25000 in an investment plan. After 2. years it has grown ₹ 30000, then the rate of return on his investment is

10%

25%

20%

15%

✅ Correct Option: 3

Given information:

Initial Investment = ₹25,000

Final Amount after 2 years = ₹30,000

Time Period = 2 years

The rate of return represents the total percentage increase in the investment value over the entire time period.

Rate of Return = $\dfrac{\text{Profit}}{\text{Initial Investment}} \times 100$

Profit = Final Amount - Initial Investment

Profit = ₹30,000 - ₹25,000

Profit = ₹5,000

Rate of Return = $\dfrac{5,000}{25,000} \times 100$

Rate of Return = $\dfrac{1}{5} \times 100$

Rate of Return = $20\%$

Therefore, the rate of return on the investment is $20\%$ .

2026: 18 May Shift 1

Which of the following statements are correct about the compound annual growth rate (CAGR)?

(A) CAGR is calculated by using the final and beginning value of an investment.

(B) CAGR is compounded annual return of an investment.

(D) CAGR can be used to demonstrate and compare the performance of investment advisors.

Choose the correct answer from the options given below:

2025: 14 May Shift 2

If an investment of Rs. 12000 becomes Rs. 72000 in 4 years, then the compound annual growth rate is:

2025: 29 May Shift 2

Rakshita plans to buy a house for Rs.1,00,00,000 with down payment of 20% of the value of house paid by her mother, Rest of the amount she wishes to pay in 25 years by equal monthly installment at an interest of 9% per annum compounded monthly. Then the EMI paid by her is: (Given $(1.0075)^{300}$ = 9 )

2025: 22 May Shift 2

A machine costing ₹ 36000 has an effective life of 5 years with scrap value of ₹ 5000 following a linear method of depreciation. Which of the following statements are correct?

(A) The value of the machine after 1 year is ₹ 31000

(B) The value of the machine after 2 years is ₹ 23600

(D) The value of the machine after 4 years is ₹ 11200

Choose the correct answer from the options given below:

2025: 29 May Shift 2

Mrs Rathna invested Rs 2 lakh in an enterprise for 5 years. Her compound annual growth rate (CAGR) turned out to be 20.5%. The end balance would be: (given $(1.205)^5=2.54)$

2025: 21 May Shift 2

Which of the following statements are correct?

(A) A fund which is created to accumulate money over the years to discharge a future obligation is called a sinking fund.

(B) The amount or future value of perpetuity is well-defined.

(D) An equated monthly installment is a fixed payment made by a borrower to a lender at a specific date every month to clear off the loan.

Choose the correct answer from the options given below:

A person has an initial investment of ₹ 25000 in an investment plan. After 2. years it has grown ₹ 30000, then the rate of return on his investment is

Solution

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