Practicing Success

Target Exam

CUET

Subject

-- Mathematics - Section B2

Chapter

Financial Mathematics

Question:

A person creates a sinking fund to accumulate ₹60,000 in 5 years to buy a bike. The amount to be deposited at the end of every quarter with a 12% rate of interest compounded quarterly is :

$\left(Use \frac{0.03}{(1.03)^{20}-1}=0.0372\right)$

Options:

₹2164

₹2232

₹2396

₹2495

Correct Answer:

₹2232