Statistics & Applications

Financial Math

Medium

applied

A man wants to get ₹10,000 forever at the beginning of each quarter, if the money is worth 8% per annum compounded quarterly, then the money he needed to invest now is

₹5,00,000

₹5,10,000

₹1,25,000

₹12,50,000

✅ Correct Option: 2

This is a perpetuity due, with quarterly rate $i=\frac{8\%}{4}=0.02$ and $R=10000$ .

Present value $=R+\frac{R}{i}=10000+\frac{10000}{0.02}=10000+500000=₹5{,}10{,}000$ .

The extra $R$ appears because payments are made at the beginning of each quarter.

2025: 13 May Shift 2

Which of the following statements are correct about the Compound Annual Growth Rate (CAGR)?

(A) It can be used to compare historical returns on different investment portfolios.

(B) It helps smooth returns when growth rates are expected to be volatile and inconsistent.

(C) It is unable to track the performance of various business measures of one or multiple companies alongside one another.

(D) It can be used to calculate the average growth of a single investment.

Choose the correct answer from the options given below:

2026: 19 May Shift 2

If the cash equivalent of a perpetuity of ₹ 1200 payable at the end of each quarter is ₹ 96,000, then the rate of interest convertible quarterly is:

2025: 3 June Shift 2

Choose the correct statement about CAGR(compound annual growth rate)?

2025: 22 May Shift 2

Anush takes a loan of ₹ 150000 @ 16% annual interest for 5 years. His EMI (Equally Monthly Installment) on monthly basis under flat rate system is:

2026: 25 May Shift 1

A money-lender charges interest at the rate of 10 rupees per 110 rupees semi-annually, payable in advance. Then

Match the LIST-I with LIST-II

LIST-I	LIST-II
A. rate per conversion period ( $i$ )	I. 2
B. nominal rate (r)%	II. 21
C. number of period in a year (m)	III. 20
D. effective rate of interest ( $r_e$ )%	IV. 0.1

Choose the correct answer from the options given below:

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:

A man wants to get ₹10,000 forever at the beginning of each quarter, if the money is worth 8% per annum compounded quarterly, then the money he needed to invest now is

Solution

Related questions:

Keyboard Shortcuts

CUET Mathematics Past Year Questions (Topic-Wise)