Class 12 CBSE Applied Maths Perpetuity, Sinking Funds, Bonds & EMI Exercise 12.2
Class 12 CBSE Applied Maths aims to develop an understanding of basic
mathematical and statistical tools and their
applications in the field of commerce (business/ finance/economics) and social
sciences. Topics covered in Class 12th Applied Maths includes : Numbers, Quantification and
Numerical Applications, Algebra, Calculus, Probability Distributions , Inferential Statistics, Index
Numbers and Time-based data , Financial Mathematics , Linear Programming.
Please Select
Q1. A company establishes a sinking fund to provide for payment of Rs 250000 debt, maturing in 4 years. Contribution to the fund are to be made at the end of each year. Find the amount of each annual deposit if the interest is 18% per annum.
Solution :
Q2. A person has set up a sinking fund so that he can accumulate Rs 100000 in 10 years for his children’s higher education. How much amount should he deposit every six months if interest is 5% per annum compounded semi-annually?
Solution :
Q3. A firm anticipates a capital expenditure of Rs 50000 for a new equipment in 5 years. How much should be deposited quarterly in a sinking fund carrying 12% per annum compounded quarterly to provide for the purchase?
Solution :
Q4. A machine costs a company Rs 525000 and its effective life is estimated to be 20 years. A sinking fund is created for replacing the machine at the end of its lifetime when its scrap realizes a sum of Rs 25000 only. Calculate what amount should be provided every year out of profits for the sinking fund if it accumulates an interest of 5% per annum.
Solution :
Q5. A machine being used by a company is estimated to have a life of 15 years. At that time a new machine would cost Rs 75000 and the scrap of the old machine would yield Rs 9600 only. A sinking fund is created for replacing the machine at the end of its life. What sum should be retained by the company at the end of every year to accumulate at 6% per annum?
Solution :
Q6. A company sets aside a sum of Rs 1000 at the end of each year in a sinking fund so that at the end of 10 years, it would amount toa balance sufficient to replace the machinery. Assuming that the cost of machinery remains constant at the end of 10 years and that money earns 5% per annum compound interest, find the cost of the machinery.
Solution :
