Class 12 CBSE Applied Maths Return, Growth & Depreciation Exercise 14.2
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. Find the effective rate of return which is equivalent to a stated rate of 8% compounded quarterly. [Use (1.02)4 = 1.0824]
Solution :
Q2. Find the declared rate of return compounded semiannually which is equivalent to 6% effective rate of return. [Use (1.06)1/2 = 1.0296]
Solution :
Q3.
Find the effective rate of return equivalent to declared rate of 12% compounded
(i) semiannually (ii) quarterly (iii) monthly (iv) continuously
[Use (1.06)2 = 1.1236, (1.03)4 = 1.1255 and (1.01)12 = 1.1268, e0.12 = 1.1275]
Solution :
Q4.
Mrs Renu has two investment options 8.4% p.a. compounded monthly or 8.5% p.a.
compounded semiannually. Which option is better for Mrs Renu?
[Use (1.007)¹² = 1.0873, (1.0425)² = 1.0868]
Solution :
Q5.
Mr Deepanshu wants to make an investment of 10000 for 5 years. He has two options. First
option fetches him a return of 8% compounded semiannually and second option fetches him
a return of 7.5% compounded quarterly. Which investment option should he go for?
[Use (1.04)2 = 1.0816 and (1.01875)4 = 1.0771]
Solution :
Q6. Mrs Vandana invested ₹35000 in a shares of a company and reinvested the earnings every year in buying the shares of the same company. At the end of 5 years, the value of shares increased to ₹56000. Calculate the compound annual growth rate of her investment.
Solution :
Q7. Mr Mohan invested ₹5000 in a fund at the beginning of year 2018 and by the end of year 2018 his investment was worth ₹9000. Next year market crashed and he lost ₹3000 and ending up with ₹6000 at the end of year 2019. Next year i.e. 2020 he gained ₹4500 and ending up with ₹10500 at the end of the year. Find CAGR of his investment.
Solution :
Q8.
Bhandari invested 10000 in a portfolio with return given below:
From April 1, 2012 to March 31, 2013 portfolio grew to ₹12000
From April 1, 2013 to March 31, 2014 portfolio grew to ₹12500
From April 1, 2014 to March 31, 2015 portfolio grew to ₹13800
On March 31, 2016 the portfolio ended with ₹18000.
Calculate the compound annual growth rate of portfolio.
Solution :
Q9.
Mr Tripathi invested ₹10000 in a company's fund. His yearly investment values are shown
in the table given below:
Calculate CAGR of his investment.
Solution :
Q10. Mr Kumar has invested ₹20000 in year 2014 for 5 years. If CAGR for that investment turned out to be 11.84%. What will be the end balance?
Solution :
Q11. Mr Naresh has bought 200 shares of city look company at ₹100 each in 2015. After selling them he has received ₹30000 which accounts for 22.47% CAGR. Calculate the number of years for which he was holding the shares.
Solution :
