Exercise 7.3 - Chapter 7 Financial Mathematics 11th Business Maths Guide Samacheer Kalvi Solutions - SaraNextGen [2024-2025]

Updated By SaraNextGen

On April 24, 2024, 11:35 AM

Exercise 7.3

Text Book Back Questions and Answers

Choose the correct answer.

Question 1.
The dividend received on 200 shares of face value ₹ 100 at 8% dividend value is:
(a) 1600
(b) 1000
(c) 1500
(d) 800
Answer:
(a) 1600
Hint:
Dividend 

Question 2.
What is the amount related is selling 8% stacking 200 shares of face value 100 at 50?
(a) 16,000
(b) 10,000
(c) 7,000
(d) 9,000
Answer:
(b) 10,000
Hint:
Amount = 200 × 50 = 10000

Question 3.
A man purchases a stock of ₹ 20,000 of face value 100 at a premium of 20%, then investment is:
(a) 20,000
(b) 25,000
(c) 22,000
(d) 30,000
Hint:
Investment = Number of shares × Market value

Question 4.
A man received a total dividend of 25,000 at a 10% dividend rate on a stock of face value 100, then the number of shares purchased.
(a) 3500
(b) 4500
(c) 2500
(d) 300
Answer:
(c) 2500

Question 5.
The brokerage paid by a person on this sale of 400 shares of face value 100 at 1% brokerage:
(a) 600
(b) 500
(c) 200
(d) 400
Answer:
(d) 400
Hint:
Brokerage 

= 400

Question 6.
Market price of one share of face value 100 available at a discount of 9½ % with brokerage ½% is:
(a) 89
(b) 90
(c) 91
(d) 95
Answer:
(c) 91
Hint:
Market price = Face value – Discount + Brokerage
= 100 – 9½
= 100 – 18/2
= 100 – 9
= 91

Question 7.
A person brought a 9% stock of face value 100, for 100 shares at a discount of 10%, then the stock purchased is:
(a) 9000
(b) 6000
(c) 5000
(d) 4000
Answer:
(a) 9000
Hint:
Face value = 100
Discount = 10%
Market price of a share = 100 – 10 = 90
Number of share = 100
Stock purchased = 100 × 90 = ₹ 9000

Question 8.
The Income on 7 % stock at 80 is:
(a) 9%
(b) 8.75%
(c) 8%
(d) 7%
Answer:
(b) 8.75%
Hint:
Income = 7/80 × 100
= 0.0875 × 100
= 8.75%

Question 9.
The annual income on 500 shares of face value 100 at 15% is:
(a) 7500
(b) 5000
(c) 8000
(d) 8500
Answer:
(a) 7500
Hint:

= 7500

Question 10.

5000 is paid as perpetual annuity every year and the rate of C.I. 10%. Then the present value P of an immediate annuity is:
(a) 60,000
(b) 50,000
(c) 10,000
(d) 80,000
Answer:
(b) 50,000
Hint:

Question 11.
If ‘a’ is the annual payment, ‘n’ is the number of periods and ‘i’ is compound interest for ₹ 1 then future amount of the annuity is:

Answer:

Question 12.
A invested some money in 10% stock at 96. If B wants to invest in an equally good 12% stock, he must purchase a stock worth of:
(a) 80
(b) 115.20
(c) 120
(d) 125.40
Answer:
(a) 80
Hint:
Let x be B stock worth.

Question 13.
An annuity in which payments are made at the beginning of each payment period is called:
(a) Annuity due
(b) An immediate annuity
(c) perpetual annuity
(d) none of these
Answer:
Annuity due

Question 14.
The present value of the perpetual annuity of 2000 paid monthly at 10 % compound interest is:
(a) 2,40,000
(b) 6,00,000
(c) 20,40,000
(d) 2,00,400
Answer:
(a) 2,40,000
Hint:

Question 15.
An example of a contingent annuity is:
(a) Life insurance premium
(b) An endowment fund to give scholarships to a student
(c) Personal loan from a bank
(d) All the above
Answer:
(b) An endowment fund to give scholarships to a student