1.

If and find the matrix C, such that A+2C=B

2. If show that A2=0, 0 being a 3×3 null matrix

3. Show that if A is the matrix then being the 3×3

unit matrix and 0 being the 3×3 null matrix

4. Solve the following simultaneous equations by using Cramer’s rule:

5. Find the rank of the matrix

6. Find the adjoint of the matrix

7. Find the inverse of

8. The following matrix gives the proportionate mix of constituents used for three fertilizers

Constituent

Fertilizer A B C D

1 0.5 0 0.5 0

2 0.2 0.3 0 0.5

3 0.2 0.2 0.1 0.5

(I) If sales are 1000 tins (of one kilogram each ) per week, 20% of being fertilizer 1, 30%
being fertilizer 2 and 50% of fertilizer 3, how much of each constituent is used?
(II) If the cost of each constituent is 50 paise, 60 paise, 75 paise and 100 paise per 100
grams, respectively, how much does a one kilogram tin of each fertilizer cost?
(III) What is the total cost per week?
9. For the following market conditions find the equilibrium quantities and prices by using matrix
inversion method
=

=
10. Given the input coefficient matrix A and the demand vector D

(i) Find the output the three industries

(ii) If the final demand of the first industry increases by one unit, determine the changes in
output levels of the three industries
(iii) Check the viability of the systemby using Hawkin-Simon Condition
11. Given the following input and output table calculate the gross output so as to meet the final
demand of 300 units of agriculture and 800 units of industry

Producer Sector Consumer Sector Industry Final demand Total output

Agriculture

Agriculture 300 600 100 1000

Industry 400 1200 400 2000

12. A certain price of equipment is inspected at the end of each day and are just classified as just
overhauled, good, fair or inoperative, the four classifications being denoted as 1,2,3 and 4
respectively. If the item is inoperative it is overhauled, a procedure that takes one day. Assume
that the working condition of the equipment follows a mark or process with the following
transition matrix

Tomorrow

1 2 3 4

Today 1 0 3/4 1/4 0

2 0 1/2 1/2 0

3 0 0 1/2 1/2

4 1 0 0 0

It cost Rs 125 to overhaul a machine on the average and Rs 75 is lost in production, if a machine
is found inoperative. Use the steady state probabilities to compute the expected per day cost of
maintenance
13. There are three diaries in towns say A, B and C. They supply all the milk consumed in the town .
It is known by all the diaries that consumers switch from diary to diary over time because of
advertising, dissatisfaction with service and other reasons. All these dairies maintain records of
number of their customers and the dairy from which they obtained each new customer.
Following table illustrate the flow of customers over an observation period of one month, viz
June

June 1 Gains from Loss to July 1

customers customers
Dairy A B C A B C

A 200 0 35 25 0 20 20 220

B 500 20 0 20 35 0 15 490

C 300 20 15 0 25 20 0 290

Assume that the matrix of transition probabilities remains fairly stable and the July 1 market
shares are A-=22%, B=49% and C=29%
Managers of these dairies want to know
(i) Market share of their respective dairies on 1 st August and 1st September
(ii) Their market share in steady state.
14. A sum of $8000 is invested in a savings account which pays interest at a rate of 9 percent per
year compounded annually. If the amount is kept on deposit for 6 years, what will the compound
amount equal? How much interest will be earned during the six years?
15. A sum of $20,000 is invested in a savings account which pays interest at a rate of 8 percent per
year compounded annually. If the amount is kept on deposit for 10 years, what will the
compound amount equal? How much interest will be earned during the 10 years?
16. A company invests $50,000 is invested in a credit union which pays interest at a rate of 10
percent per year compounded annually. If the amount is kept on deposit for 5 years, what will
the compound amount equal? How much interest will be earned during 5 years?
17. An individual invests $ 25000 in a money market fund which is expected to yield interest at a
rate of 12 percent per year compounded quarterly. If the interest remains stable to what amount
should the $25000 grow over the next 5 years? How much interest will be earned during this
period?
18. The number of students at a local university is currently 150000. Enrollments have been
growing at a rate of 3.5 percent per year. If enrollments continue at the same rate, what is the
total student population expected to be 10 years from now?
19. Consumer prices have been increasing at an average rate of 6 percent per year compounded
quarterly. The base price of a particular Chivorlet is$14500. If prices on this model increases at
the same rate as other consumer prices, what is the expected base price of the same model 5
years from now?
20. If saving accounts awards interest of 6 percent per year compounded quarterly, what amount
must be deposited today in order to accumulate $40,000 after 10 years? How much interest will
be earned 10 years from now?
21. What sum must be deposited today at 10 percent compounded quarterly if the goal is to have a
compound amount of $50000 6 years from today? How much interest will be earned during this
period?
22. What sum must be deposited today at 9 percent per year compounded semiannually if the goal
5 years from today is to have a compound amount of $100,000?How much interest will be
earned during this period?
23. A sum of $25000 earns interest at a rate of 7 percent compounded annually. How long will it
take the investment to grow to $60,000?
24. A sum of $250,000 earns interest at a rate of 12 per year compounded quarterly. How long will it
take for the investment to grow to $400,000?
25. The nominal interest rate on an investment is 6 percent per year, Determine the annual interest
if (a) if interest rate is compounded semiannually (b) is compounded quarterly
26. If $2000 is to grow to $ 5000 over a 12 year period, at what annual rate of interest must it be
invested, given that the interest is compounded annually?
27. If $60000 is to grow $180000 over a 10-year period, at what annual interest rate it must be
invested, given that interest is compounded semiannually?
28. A person wishes to deposit $5000 per year in savings account which earns interest of 8 percent
per year compounded annually. Assume that the first deposit is made at the end of current year
and additional deposits at the end of each following year
(a) To what sum will the investment grow at the end of 10 th deposit?
(b) How much interest will be earned?
29. A person wants to deposit $10,000 per year for 6 years. If interest is earned at the rate of 10
percent per year, compute the amount to which the deposits will grow by the end of 6 years if:
(a) Deposits of $10,000 are made at the end of each year with interest compounded annually
(b) Deposits are made at the end of every 6 month period and interest compounded
semiannually?
(c) Deposits of $2500 are made at the end of every quarter with interest compounded quarterly
30. A corporation wants to invest $10 million per year for 5 years. If interest is earned at the rate of
14 percent per year, compute the amount to which the interest will grow if
(a) Deposits of $10 million are made at the end of each year with interest compounded annually
(b) Deposits of $5million are made at the end of 6 month period with interest compounded
semiannually
(c) Deposits of $2.5 million are made at the end of each quarter with interest compounded
quarterly
31. A major city wants to establish a sinking fund to pay off debts of $75 million which come due in 8
years. The city can earn interest at the rate of 10 percent per year compounded semiannually. If
the first deposit is made 6 months from now, what semiannual deposit will be required to
accumulate $75 million? How much interest will be earned on these deposits
32. Determine the present value of 15 payments of $5000 each which begins 6 months from today.
Assume interest of 9 percent per year compounded semiannually?
33. Determine the present value of a series of 20 quarterly payments of $ 2500 each which begins
3months from today. Assume interest of 8 percent compounded quarterly
34. (a) Determine the monthly car payments necessary to repay a $15000 automobile loan if interest
is computed at 12 percent compounded monthly. Assume the period of loan is 10 years.
 (b) How much interest will be paid end of 3 years?

35. (a)Determine the quarterly payment necessary to repay $25000 loan if interest is computed at
the rate of 14% per year compounded quarterly. Assume the loan is repaid in 10 years
(c) How much interest will be paid over the 10 year period?
36. A Finance Company advertises that it will pay a lumpsum of Rs 1,00,000 at the end of 6 years to
investors who deposit s 10,000 annually. What interest rate is implied in this offer?
37. A firm has to make a choice between buying a property or renting it The firm can either pay Rs
1,00,000 and acquire the property permanently or it can rent it for Rs 10,000 per annum for 5
years> Should the firm rent or buy the property? The discount rate is 15%
38. Suppose someone offers you the following Financial contract. If you deposit Rs 20,000 with him,
he promises to pay Rs 4000 annually for 10 years. What interest rate would you earn on the
deposit?
39. What is the present value of an income stream which provides Rs 1000 at the end year one, Rs
2500 at the end of year two, and Rs 5000 during each of the years 3 through 10, if the discount
rate is 12%
40. What is the present value of an income stream which provides Rs 2000 an year for the first five
years and Rs 3000 an forever thereafter, if the discount rate is 10%
41. A person requires Rs 20,000 at the beginning of the year from 2011 to 2015. How much should
he deposit at the end of each year from 2001 to 2006? The interest rate is 12%
42. A person estimates that he can afford mortgage payment of $1200 per month. He can obtain a
30-year mortgage at an interest rate of 11.25 percent. What is the largest mortgage loan he can
afford?
43. Determine whether the investment project depicted by the cash flow given in the table satisfies
minimum expected return of 14percent per year. What is the NPV at the indicated interest rate

Year Cash Flow in $

0 -200,000

1 0

2 0

3 40,000

4 60,000

5 80,000

6 100,000

44. Determine whether investment project depicted in the table has a rate of return greater than or
equal to 12 percent per year. What is the internal rate of return?

Year Cash Flow in $

 0 -100,000

1 400000

2 400000

3 400000

4 400000

5 400000

6 400000

45. A man arranges to pay off a debt of INR 7200 by 20 annual installments which form an A.P..
When 15 of these installments have been paid, he dies leaving one-third of his debt unpaid; find
the value of first installment.

46. A person is appointed on a basic pay of INR 1000 per month and gets an increment of INR 50
every year. He contributes 10% of his salary to Provident Fund what will be his total
contributions to Provident Fund during 25 years of service?

47. 9. A man saved INR 16500 in ten years. In every year after the first he saved INR 100 more than
he did in the preceding year? How much did he save in the first year?

48. 16. If are in G.P. and is the A. M between , and is the A. M between

49. Show that

50. 17. If the value of a scoter gets depreciated by 20 percent per year, what would be the
depreciated value of the scooter at the end of 5 th year if the present value of the scooter is Rs
24000?

51. 18. A man borrows Rs 19682 without interest and agrees to repay in 9 monthly instalments, each
installment being thrice the preceding one. If after seventh installment he wantsto repay the
balance then how much will he have to pay?

52. 19. If 4th and 7th terms of an H.P. are 2/3 and 2/5 respectively. Find the v first and nth terms.