Applied Mathematics

Financial Mathematics

Easy

applied

The effective rate $r_e$ corresponding to the nominal rate r compounded continuously is

$1-r$

$e^r-1$

$1+\frac{1}{r}$

$1-\frac{1}{e^r}$

✅ Correct Option: 2

Continuous compounding turns one rupee into $e^{r}$ after a year.

The effective rate is the growth over the year, $e^{r}-1$ .

2023: 23 May Shift 3

The effective rate that is equivalent to a nominal rate of 16% compounded semi-annually is :

2022: 25 May Shift 1

The present value of a perpetuity of Rs 1,200 payable at the beginning of each year, if the money is worth 5% effective, is:

2023: 30 May Shift 3

A company has issued a bond having a face value of Rs. 10,000 paying annual dividends at 8.5%. The bond will be redeemed at par at the end of 10 years, then the purchase price of this bond if the investor wishes a yield rate of 8% is : [Given $(1.08)^{-10} = 0.46319349$ ]

2023: 22 May Shift 3

Ravi takes a loan of Rs. 40,000 at an interest of 12% per annum for a period of 4 year, then EMI by using flat method is :

2026: 14 May Shift 2

A machine costing ₹16,00,000 is expected to have a useful life of 15 years and a final scrap value of ₹1,00,000. Which of the following statements are correct ?

A. The annual depreciation is ₹50,000.

B. The annual depreciation is ₹1,00,000.

C. The book value at the end of the sixth year is ₹9,00,000.

D. The book value at the end of the sixth year is ₹10,00,000.

Choose the correct answer from the options given below:

2023: 30 May Shift 3

The effective rate that is equivalent to a nominal rate of 12% compounded quarterly is :

The effective rate rer_ere​ corresponding to the nominal rate r compounded continuously is

Solution

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CUET Mathematics Past Year Questions (Topic-Wise)

The effective rate $r_e$ corresponding to the nominal rate r compounded continuously is