At what rate of interest will the present value of a perpetuity of ₹10000 payable at the end of every six months be ₹200,000? Option 1: 12% per annum Option 2: 10% per annum Option 3: 20% per annum Option 4: 15% per annum

Answer: 10% per annum. Solution: For a perpetuity, present value =R/i where i is the rate per payment period. 2,00,000=(10,000)/i gives i=0.05 per half-year. Annually this is 5x2=10% per annum.

Statistics & Applications

Financial Math

Easy

applied

At what rate of interest will the present value of a perpetuity of ₹10000 payable at the end of every six months be ₹200,000?

12% per annum

10% per annum

20% per annum

15% per annum

✅ Correct Option: 2

For a perpetuity, present value $=\frac{R}{i}$ where $i$ is the rate per payment period.

$2,00,000=\frac{10,000}{i}$ gives $i=0.05$ per half-year.

Annually this is $5\times2=10\%$ per annum.

2026: 18 May Shift 2

A father has setup a sinking fund in order to have ₹ 2,40,000 after 10 years for his daughter's marriage. How much amount should he set aside bi-annually into an account paying 5% per annum compounded half-yearly?

[given : $(1.025)^{20}\approx 1.6$ ]

2025: 14 May Shift 1

A person wishes to purchase a house for ₹ 39,65,000 with a down payment of ₹ 5,00,000 and balance in equal monthly installments (EMI) for 25 years. If bank charges 6% per annum (compounded monthly), then EMI on reducing balance payment method is:

[Given $(1.005)^{300} = 4.465$ ]

2026: 22 May Shift 2

Mohan wishes to purchase a house for ₹10,000,000 with a down payment of ₹20,00,00.00. If he pays the balance amount in 25 years by equal monthly instalment at 9% compounded monthly, then the total interest paid by Mohan is:

[Use $(1.0075)^{300} = 9.4084$ ]

2026: 12 May Shift 2

Which of the following approaches is not associated to valuation of bonds ?

2026: 30 May Shift 1

Match the LIST-I with LIST-II

LIST-I (Financial data)	LIST-II (Nominal rate of return)
A. Original investment value = ₹3,50,000; Current market value of investment = ₹4,37,500	I. 66.66%
B. Original investment value = ₹2,50,000; Current market value of investment = ₹3,25,000	II. 33.33%
C. Original investment value = ₹3,00,000; Current market value of investment = ₹4,00,000	III. 30%
D. Original investment value = ₹3,00,000; Current market value of investment = ₹5,00,000	IV. 25%

Choose the correct answer from the options given below:

2026: 12 May Shift 2

Rama takes a personal loan for a car worth ₹5,00,000 at an interest rate of 7% per annum to be repaid by equal monthly instalments (EMI) in 5 years. Using flat rate method, EMI will be:-

At what rate of interest will the present value of a perpetuity of ₹10000 payable at the end of every six months be ₹200,000?

Solution

Related questions:

Keyboard Shortcuts

CUET Mathematics Past Year Questions (Topic-Wise)