Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Financial Mathematics

Question:

A property dealer wishes to buy different houses given in the table below with some down payments and balance in EMI for 25 years. Bank charges 6% per annum compounded monthly.

$\left(\right.$ Given $\left.\frac{(1.005)^{300} \times 0.005}{(1.005)^{300}-1}=0.0064\right)$

 Property type 

 Price of the property (in ₹) 

 Down Payment (in ₹) 

P

45,00,000

5,00,000

Q

55,00,000

5,00,000

R

65,00,000

10,00,000

S

75,00,000

15,00,000

Match List-I with List-II:

 List-I
 Property Type 

 List-II
 EMI amount (in ₹) 

 (A) P

 (I) 25,600

 (B) Q

 (II) 38,400

 (C) R

 (III) 32,000

 (D) S

 (IV) 35,200

Choose the correct answer from the options given below:

Options:

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (I), (B) - (III), (C) - (IV), (D) - (II)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer:

(A) - (I), (B) - (III), (C) - (IV), (D) - (II)

Explanation:

The correct answer is Option (2) → (A) - (I), (B) - (III), (C) - (IV), (D) - (II)

Loan amount = Price − Down payment.

Given factor for EMI:

$\frac{(1.005)^{300}\cdot0.005}{(1.005)^{300}-1}=0.0064$

So EMI $= \text{Loan}\times0.0064$.

For P:

Loan $=45,00,000-5,00,000=40,00,000$

EMI $=40,00,000\times0.0064=25,600$

So (A) → (I).

For Q:

Loan $=55,00,000-5,00,000=50,00,000$

EMI $=50,00,000\times0.0064=32,000$

So (B) → (III).

For R:

Loan $=65,00,000-10,00,000=55,00,000$

EMI $=55,00,000\times0.0064=35,200$

So (C) → (IV).

For S:

Loan $=75,00,000-15,00,000=60,00,000$

EMI $=60,00,000\times0.0064=38,400$

So (D) → (II).

final answer: (A)–(I), (B)–(III), (C)–(IV), (D)–(II)