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A comprehensive set of worksheets and solutions covering various topics in mathematics applied to finance. It includes problems on depreciation, compound interest, simple interest, annuities, and more. Designed to help students understand and apply mathematical concepts to real-world financial scenarios.
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worksheet solutions
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Mathematics in Finance
A machine was depreciated at the rate of 10% per annum for the first 2 years after it was purchased and
at the rate of 13% per annum for the next four years and finally at the rate of 15% per annum for the
rest. The original cost of the asset was Rs. 41,50,000. Find the scrap value of the asset at the end of
seven years
The population of Delhi was 15,000 three years back, it is 22,000 right now; what will be the population
three years later, if the rate of growth of population has been constant over the years and has been
compounded annually?
Find the compound amount of Rs. 50000 for 4 years at 6%converted (a) annually (b) Semiannually (c)
quarterly (d) Continuously
Find the time required for Rs 8000 to yield Rs 1250 at a simple interest of 5% per annum.
Find the rate of interest at which Rs 12000 will yield Rs 2060 in 2 years and 6 months. 6.
A person borrows Rs. 50,000 for six years at compound interest. The rate of interest is 7.5% per annum.
What are the interest charges for years 3 and 5? What is the accumulated amount at the end of six
year?
A certain sum of money at simple interest amounts to ₹560 in 3 years and to ₹600 in 5 years. Find the
principal and the rate of interest.
At what rate percent will Rs 380 amount to Rs 893 in 15 years.
A banker borrows a certain sum at 8% p.a. compound interest compounded half yearly. He lends this
money at 8% p.a. compound interest compounded quarterly. If he earns Rs. 9 in two years. Find the sum
borrowed.
A loan of Rs. 2,25,000 to be repaid in two equal annual installments. If the rate of compound interest is
13% per annum, find the installment amount
The book value of the asset at the end of the 4th year is Rs. 10,00,000 and at the end of the 10th year is
Rs. 5,31,441. If depreciation is written off under the declining balance method, find the rate of
depreciation per annum and the original cost of the asset.
A manufacturer estimates that the value of his machinery depreciates by 13% of its value at the
beginning of the year. Find the original value of the machine, if it depreciates by Rs. 5,655 during the
second year
A machine was depreciated at the rate of 15% per annum for the first 2 years after it was purchased and
at the rate of 10% for the next three years. The original cost of the asset was Rs. 20,000. Find the
depreciated value of the asset at the end of five years.
A banker borrows a certain sum at 8% p.a. compound interest compounded half yearly. He lends this
money at 8% p.a. compound interest compounded quarterly. If he earns Rs. 9 in two years. Find the sum
borrowed.
A loan of Rs. 2,25,000 to be repaid in two equal annual installments. If the rate of compound interest is
13% per annum, find the installment amount
The book value of the asset at the end of the 4th year is Rs. 10,00,000 and at the end of the 10th year is
Rs. 5,31,441. If depreciation is written off under the declining balance method, find the rate of
depreciation per annum and the original cost of the asset.
A manufacturer estimates that the value of his machinery depreciates by 13% of its value at the
beginning of the year. Find the original value of the machine, if it depreciates by Rs. 5,655 during the
second year
Ordinary Annuity: When the payments are made at the end of the payment intervals, the annuity is
called an ordinary annuity or annuity immediate.
Annuity Due: When the payments are made at the beginning of the payment intervals, the annuity is
called an annuity due
Find the present value and amount of an annuity due of Rs. 1500 payable once in the beginning of two
months for 4 years, if the money is worth 12% compounded once in two months
Find the present worth of an annuity due of Rs. 500 payable at the beginning of each month for 2 years,
if the money is worth 8% p a compounded monthly.
A bank pays 8% per year interest, compounded quarterly. What equal deposits have to be made at the
beginning of each quarter for 10 years, to have Rs. 30,200 at the end of 10 years?
What amount should be set-aside at the beginning of each year to amount to Rs.38,688.12 at the end of
10 years at 14% per annum compounded annually?
Find the amount of an ordinary annuity of Rs. 3000 for 12 years at the
rate of interest of 5% per annum.
Find the amount of an ordinary annuity of 15 monthly payments of Rs. 2500 that earn interest at 12%
per annum compounded monthly
A man deposits Rs. 30000 at the end of each year for 20 years. He made his first payment at the end of
year 1991 and last payment at the end of year 2011. How mush should be there in his account on 31
Dec. 2011, if the 10% interest rate is compounded annually.
A person is repaying a debt with payments of Rs.2,500 per month. If he misses his payments for July,
August, September and October, what payment will be required in November to put him back on
schedule, if interest is at 12.6% per annum?
A person is repaying a debt with payments of Rs.2,500 per month, at the beginning of every month. If
he misses his payments for July, August, September and October, what payment will be required in
November to put him back on schedule, if interest is at 12.6% per annum
