CA Foundation - Quantitative Aptitude & Business Economics

Commercial Math, Statistical Dispersion & Economic Analysis question bank (Business Mathematics, Statistics & Economics)

Practice 64 free CA Foundation - Quantitative Aptitude & Business Economics Business Mathematics, Statistics & Economics - Commercial Math, Statistical Dispersion & Economic Analysis questions with answers and step-by-step solutions.

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Q1.

Annuity Valuation: In 'Mathematics of Finance: Simple Interest, Compound Interest, Effective Rate, Annuities and Sinking Fund', what is the Present Value of an annuity regular of Rs. 10,000 payable at the end of each year for 3 years discounted at an annual rate of $10\%$? (Take $(1.1)^{-3} = 0.7513$)

(A)

Rs. 24,869 ($PV = 10000 \times \frac{1 - 0.7513}{0.10} = 10000 \times 2.4869$) (Mathematics of Finance: Simple Interest, Compound Interest, Effective Rate, Annuities and Sinking Fund)

(B)

Rs. 30,000

(C)

Rs. 27,000

(D)

Rs. 21,500

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Q2.

Theoretical Probability Distributions: For a Binomial distribution in 'Mathematics of Finance: Simple Interest, Compound Interest, Effective Rate, Annuities and Sinking Fund' with parameters $n = 100$ and $p = 0.20$, what is the mean and variance?

(A)

Mean $= 20$, Variance $= 16$ ($np = 20, npq = 100 \times 0.20 \times 0.80 = 16$) (Mathematics of Finance: Simple Interest, Compound Interest, Effective Rate, Annuities and Sinking Fund)

(B)

Mean $= 20$, Variance $= 20$

(C)

Mean $= 25$, Variance $= 20$

(D)

Mean $= 16$, Variance $= 4$

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