Imp Question (End Sem Exam)

Module – Mathematics of Finance

EX: 1 You deposit Rs.1000 into an account that earns 5% simple annual interest, and your friend deposits Rs.
1000 into an account that earns 5% interest compounded annually. Copy the following table and calculate
the values. Show your work
Years Simple Interest Account Balance Compound Interest Account Balance
1 ? ?
5 ? ?
10 ? ?
20 ? ?
EX: 2 The basic salary of an employee is Rs. 15000. He contributes 10% of his basic per month to provident fund.
His employer also contributes 8%. If interest credited to provident fund account is 6.5% per annum, find
the amount of interest after one year. Also, find total amount.
EX: 3 A man lent Rs. 72,000 for 5 years and Rs. 76,000 for 4 years to two persons at the same rate(R) of interest.
He received RS. 5600 more as interest from one than what he received as interest from the other. What is
the rate of interest per annum?
Ex: 4 Which alternative would you choose: (a) an annuity of Rs.5000 at the end of each year for 30 years: b) an
annuity of Rs.6,600 at the end of each year for 20 years : c) Lump sum payment of Rs.1,00,000 at the end of
10 years .d) Rs.50,000, in cash right now ? In each case , the time value of money is 10 per cent.
Ex: 5 You are considering the purchase of two different insurance annuities. A will pay you $16,000 at the
beginning of each year for 8 years. B will pay you $12,000 at end of each year for 12 years. Assuming your
money is worth 7%, and each costs you $75,000 today, which would you prefer?
Ex: 6 Mr. Daruwala borrows from Bank for 5 years worth Rs. 10,00,000 to buy a new car named Honda city. If
Mr. Daruwala wants to pay an equal annual installment at the end of every year, and if the rate of interest is
10%, Calculate the amount of installment every year. Also prepare Loan amortization schedule.
Ex: 7 A customer has approached the bank for vehicle loan of Rs.1000000/=. The bank offers vehicle loan for a
period of 12 months and charges interest at 12% p.a. However the customer has to repay the loan in
equated monthly installments. What will be the size of EMI? Work out the loan amortization schedule.
Ex: 8 If your company borrows $300,000 at 8% interest and agrees to repay the loan in 10 equal semiannual
payments to include principal plus interest, how much would those payments be?
Ex: 9 Anurag Limited borrows Rs.2,000,000 at an interest rate of 12 percent. The loan is to be repaid in 5 equal
annual installments payable at the end of each of the next 5 years. Prepare the loan amortization schedule.
Ex: 10 Mr. Gotalawala is planning for her daughter’s marriage after 10 years. He estimated the total expenses for
the marriage Rs. 20,00,000. How much he should invest annually at the end of year in DSP Blackrock
mutual funds which give annual return of 15%?
Ex: 11 You are planning to retire in twenty years. You'll live ten years after retirement. You want to be able to
draw out of your savings at the rate of Rs. 10,000 per year. How much would you have to pay in equal
annual deposits until retirement to meet your objectives? Assume interest remains at 9%.
Ex: 12 Mehta is planning for his retirement. He is 40 years old today & would like to have Rs. 600,000 when he
attains the age of 60 years. He intends to deposit a constant amount of money at 12% each year in PPF of
SBI to achieve his objective. How much money should Mehta invest at the end of each year for the next 20
years to obtain Rs. 600,000 at the end of that period?
Ex: 13 You plan to go abroad for higher studies after working for the next five years and understand that an
amount of Rs.2,000,000 will be needed for this purpose at that time. You have decided to accumulate this
amount by investing a fixed amount at the end of each year in a safe scheme offering a rate of interest at 10
percent. What amount should you invest every year to achieve the target amount?
Ex: 14 Your company must deposit equal annual beginning of year payments into a sinking fund for an obligation
of Rs. 800,000 which matures in 15 years. Assuming you can earn 4% interest on the sinking fund, how
much must the payments be?
Module - Sequence and Series
Ex: 1 An arithmetic progression has 3 as its first term. Also, the sum of the first 8 terms is twice the
sum of the first 5 terms. Find the common difference.
Ex: 2 An arithmetic series has first term 4 and common difference is 1/2. Find
(i) the sum of the first 20 terms, (ii) the sum of the first 100 terms.
Ex: 3 How many terms are there in the geometric progression 2, 4, 8, . . . , 128 ?
Ex: 4 Find the sum of the first five terms of the GP with first term 3 and common ratio 2.
Ex: 5 How many terms of G.P. 1 + 4 + 16 + 64 + …. Will make the sum 5461?
Ex: 6 Mr. X was drawing Rs. 400 a month during 11th year of his service, and Rs. 760 during the 29th
year. The past record shows that his salary has increased annually in A. P Find
1. Starting Salary of X:
2. Annual Increment;
3. Salary at the time of retirement, if X will retire on completion of 40 years of service.
Ex: 7 Mr. X saved Rs. 18500 in 10 years. In each year after the first he saved Rs. 200 more than he did in
the preceding year. How much did he save in the first year?
Ex: 8 The monthly salary of a person was Rs. 320 for each of the first three years. He next got annual
increments of Rs. 40 per month for each of the following successive 12 years. His salary remained
stationary till retirement when he found that his average monthly salary during the service period
was Rs. 698. Find the period of his service.
Ex: 9 80 coins are placed in a straight line on the ground. The distance between any two consecutive
coins is 10 metres. How far must a person travel to bring then one by one to a basket placed 10
metres behind the first coin.

Module – Matrix & Determinant

Ex: 1 IF A = 1 -1 ;B=0 1 ; C = -1 1 ;D= 3 2

2 0 23 2 3 1 1
and (A + B)2 + (C - D)2 + E = (A – B)2 + (C +D)2, Find matrix E

Ex: 2 1 2 3 2 0 3
If A = 0 5 7 and B = 3 0 5 find the value of 2A – 3B.
6 8 9 5 7 0

Ex: 3 A = 1 2 4 B= 3 5 6 and C = 2 6 5
0 5 6 5 0 9 3 4 7
2 7 9, 4 2 0, 8 0 1
Find the matrix 3A – B + 2C.

Ex: 4 If A = 1 2 2
2 1 2
2 2 1 Find ˓−1

Ex: 5 If P and Q are the matrices below, compute P · Q and Q · P.

P=1 2 Q=1 -1
-2 3 2 2
Ex: 6 Solve the equations x + 2y + 3z = 14 2x + y + z = 7 5x + 2y + z = 12
Ex: 7 Solve the following system of equation by matrix method
2x + 3y + 4z = 8 3x + y – z = -2 4x – y – 5z = -9
Ex: 8 Solve the following equations using the method of Inverse of Matrix;
x + 2y + 3z = 14, 3x + y + 2z = 11, 2x + 3y + z = 11
Ex: 9 Find adj. A and obtain the value of A× (adj. A)
Where A = 1 0 7 2 2 5 0 3 6
Ex: 10 Find the determinant of the following Ex: 31 1 1 1
Z= 5 -1 1 bc ca ab
-2 3 4 1/a 1/b 1/c] Find the Value of it.
1 1 7
Ex: 11 A man buys 8 dozen of mangoes, 10 dozen of apples and 4 dozen of bananas. Mangoes cost Rs.18 per dozen,
apples Rs.9 per dozen and banana Rs. 6 per dozen. Represent the quantities bought by row matrix and
prices by a column matrix and hence obtain the total cost.
Ex: 12 A radio manufacturing company produces three model of radio ‘say X, Y, and Z. There is an export order of
5000 for model X, 7500 for model Y and 1500 for model Z. The martial and labour (in appropriate units
needed to produce each model is given by the following tablet
Material Labour
Model X 15 10
Model Y 16 12
Model Z 20 15
Use matrix multiplication to compute the total amount of material and labour needed to fill the entire
order.
Ex: 13 Reliance Food Preparations Pvt. Ltd. has to choose the best way of producing three food products. Grill
Sandwich (GS), Hot Burger (HB) and Spain Pizza (SP). The amount of each food product by each method as
Non – stick (NS), Frozen (FRZN) and Oven (OVEN) is shown in the matrix A.
GS HB SP Profit
NS 4 8 2 10 GS
Matrix A = FRZN 5 7 1 Matrix B = 04 HB
OVEN 5 3 9 06 SP
Matrix B represents the profit per unit for these three food products. Find which method is more profitable.

Module - Profit And Loss:

Ex: 1 Ravi Prakashan supplies 80 copies of B. M. priced Rs. 90 to Atmiya College for Rs. 5904. Find the
rate of trade discount and the invoice price per book.
Ex: 2 Find the amount due for the following discounts given to an article priced Rs. 100
1) 20% + 10% + 5% 2) 20% + 5% + 10% 3) 10% + 5% + 20%
Ex: 3 The sale price of 100 pens is equal to print price of 85 pens. Calculate the percent discount.

PROBLEMS INVOLVING COST PRICE, SELLING PRICE AND PROFIT & LOSS
Ex: 1 On selling 180 tins oil @ Rs. 37.40 per liter, an oil trader earns a profit of Rs. 9486. He had sold the
whole oil @ Rs. 32.80 per liter, he would have suffered a loss of Rs. 3348. Find the cost price of oil
per litre. Also find the quantity of oil per tin.
Ex: 2 An oil trader purchased 100 tin musterd oil @ Rs. 631 per tin. He sold 48 tin oil @ Rs. 665 per tin,
34 tin oil @ Rs. 659 per tin the remaining oil @ Rs. 650 per tin. Find his total gain.
Ex: 3 If the S.P. of 10 articles = to P.P. of 11 articles. Calculate gain % a) on C. P. b) on S.P.
Ex: 4 A seller gets Rs. 1596 when he sells his goods at 5% profit on purchase price. What amount he
would have received, if he had sold goods 5% profit on selling price.
Ex: 5 i) Rajnikant earns 25% gain on cost price of an article. Find profit with reference to selling price.
ii) John bought a watch for Rs. 240 and sold it for Rs. 276. Find his profit and profit percentage.
PROBLEMS ON COMMISSION AND BROKERAGE
Ex: 1 A commission agent receives a fixed salary and also a commission at a certain % on sales orders.
Let total remuneration received in two consecutive months be Rs. 2930 and Rs. 3350, and orders
received be Rs. 31000 and Rs. 45000 respectively. Find salary per month and rate of commission.
Ex: 2 A house is sold for Rs. 54, 00,000. Agent charges 1.75% brokerage from seller & 1.25% brokerage
from buyer. What is total brokerage? How much buyer has to pay and how much seller will get?
Ex: 3 There are two options are given to a motor car sales agent 1) 10% commission on the sales 2) a
monthly salary of Rs. 500 plus 8% commission on sales. If the estimated sales amount to Rs.
250000. Which option agent should prefer and why?
RATIO, PROPORATION & PERCENTAGE
RATIO
Ex: 1 It was intended to divide Rs. 1980 among A, B and C in the ratio 2 : 3 : 4 but by mistake the
distribution was made in ratio of ½ : 1/3 : ¼. How much each gain or loose by mistake.
Ex: 2 Ratio of rail fares of AC, 1st class and 2nd class between two stations is 15 : 8 : 3, due to an increase
in fare by 15%, 10% and 5% respectively, ratio for no. of passengers becomes 8: 15 : 18. If total
revenue collected on a particular day be Rs. 2,77,605, find revenue from sale of 1st class ticket.
Ex: 3 A cash box contains coins of Rs. 2, Re. 1, 25p and 10p. Ratio of number of Rs. 2 and Re. 1 is 2 : 3.
Ratio of Re. 1 and 25p is 3 : 4 and ratio of number 25p and 10p coins is 8 : 15. If the total cash in
box be Rs. 4375. Find number of coins of each denomination.
Ex: 4 If the journey of 792 km performed by car, rail and bus in order, the distance by three modes in
that order are in ratio of 3 : 14 :5 and fare per km in that order are in ratio of 14 : 2 : 3. The bus
fare being Rs. 0.60 per km. Find total fare for the journey.
Ex: 5 The annual income of RAM and LEELA are in the ratio of 4:3 and their expenditure is in the ratio of
3:2. If they each save Rs. 600at the end of a year. Find their annual Income
PROPORATION:
Ex: 3 What no. should be added to each of the numbers 5, 9, 15 so that resultant no. in continued prop.?
Ex: 4 In a business A and B receives profit in a certain ratio. B and C receive the profit in the ratio of A
and B. if A receives Rs. 6400 and C receives Rs. 10,000. Find the amount received by B.
PERCENTAGE

Ex: 1 A candidate gets 65% votes in an election and wins by 2745 votes. Find total number of votes cast.
Ex: 2 80% animals were sold in an animal fair. Out of the remaining 60% died. If 152 animals remained
unsold. Find the number of animals in the fair for sale.
Ex: 3 A man gave 35% of his wealth to his son and 25% to his daughter. After donating 50% of the
remaining wealth to a school still he is left with Rs. 2,000. Find his wealth.
Ex: 4 Five subjects carry equal maximum marks. A candidate secures marks in ratio of 2 : 3 : 5 : 7 : 8. If
he obtains 3/5 of maximum marks, find, in how many subjects, he got more than 50% marks.
Ex: 5 i. Petrol price per litre increases from 73.81 to 77.43. Find the percentage increase in price.
ii. If 19% population of town is 399, find the total population.

Module - Function and Limit

Ex: 1 Ex: 7

Ex: 2 Ex: 8

Ex: 3 Ex: 9

Ex: 4 Ex: 10

Ex: 5

Ex: 6
 Theory Questions
Module – Mathematics of Finance
Q – 1 Distinguish between simple & compound interest. Explain the concept by giving numerical
example.
Q – 2 Explain the concept of EMI with example.
Q – 3 Describe the different methods of calculating compound interest.
Q – 4 Explain detail components of Time Value of Money.
Q – 5 What is Rate of Return? Explain Effective Rate of Return, Nominal Rate of Return, Real Rate of
Return, and historical Rate of Return with examples.
Q – 6 What is Interest? Explain types of interest with differences of them.
Q – 7 What is Present Value and Future Value (Time Value of Money)? Explain concept of it with real life
hypothetical examples.

Module - Sequence and Series

Q – 1 Explain AP & GP? Describe uses of AP & GP with hypothetical example.
Q – 2 What do you mean by sequence and series. Explain Arithmetic and Geometric progression with
examples.

Module – Matrix & Determinant

Q – 1 Explain types of matrices.
Q – 2 What is Matrix? Explain different types of matrices with examples.
Q – 3 Define following terms with example:
1. Matrices 2. Diagonal Matrix 3. Scalar Matrix 4. Identity Matrix
5. Transpose Matrix 6. Square Matrix
Q – 4 (1)Define following with example. Square matrix, Unit matrix, Null matrix, Skew symmetric matrix
(2) Write a properties for Determinants
Q – 5 What is a determinant? Explain any SIX properties of determinants.

Module - Profit And Loss:

Q – 1 Distinguish between Trade discount and Cash discount by giving examples.
Q – 2 Distinguish between Commission and Brokerage.
Q – 3 What is Ratio? Explain various Ratios in detail.
Q – 4 What is Ratio, Proportion and percentage? Briefly explain types of each.
Q – 5 Define what is Ratio? Also discuss continued ratio in detail with example

Module - Function and Limit

Q – 1 What is a function? Explain the different types of functions.
Q – 2 Define the following with examples.
1. Profit Function 2. Cost Function 3. Demand Function
Q – 3 Explain linear function in detail.