Class 12 Applied Maths Chapter 13 (Ex – 13.1)

Welcome to Class 12 Applied Maths Chapter 13, where we embark on an exciting journey into the world of advanced mathematical concepts tailored for Class 11 students.” Unlock the power of applied mathematics with expert solutions crafted by professionals at AppliedMath.com. Designed to propel students towards academic success, our meticulously curated ML Aggarwal Solutions for Applied Mathematics cater to Class 11 and class 12 students seeking mastery in their examinations. Every query from the CBSE ML Aggarwal Books finds a comprehensive answer on our platform, complete with detailed explanations and step-by-step solutions presented in an easily understandable language.

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Class 12 Applied Maths Chapter 13

Class 12 Applied Maths Chapter 13 Solutions

Return, Growth And Depreciation

EXERCISE- 13.1

Q.1 A person invests R.10000 in 10% 100 shares of a company available at a premium of 25. Find his rate of return.

Ans. Total Investment = Rs.10000

Face Value = Rs.100

Dividend = 10%

Market Value = 100 + 25 = Rs.125

Number of shares = 10000/125

= 80

Dividend = 100 x 10/100 x 80

= Rs.800

Rate of Return = 800/10000 x 100

= 8%

Q.2 A man invests Rs.22500 in 50 shares available at 10% discount. If the dividend paid by the company is 12%, calculate his rate of return.

Ans. Total Investment = Rs.22500

Face Value = Rs.50

Dividend = 12%

Market Value = 50 – 10% of 50

= 50 – 10/100 x 50

= Rs.45

Number of shares = 22500/45

= 500

Dividend = 50 x 12/100 x 500

= Rs.3000

Rate of Return = 3000/22500 x 100

= 40/3

= 13 1/3%

Q.3 A person invested Rs.200000 in a fund for one year. At the end of the year, the investment was worth Rs.216000. Calculate his rate of return.

Ans. Gain = 216000 – 200000

= Rs.16000

Rate of Return = 16000/200000 x 100

= 8%

Q.4 Mitul invested ₹3,50,000 in a fund. At the end of the year the value of the fund is ₹4,37,500. What is the nominal rate of interest, if the market price is same at the end of the year?

Ans. Gain = 437500 – 350000

= Rs.87500

Rate of Return = 87500/350000 x 100

= 25%

Q.5 Salman invests a sum of money in ₹50 shares paying 10% dividend quoted at 20% discount. If his annual dividend is ₹600, calculate his rate of return from the investment.

Ans. Let, Total investment be Rs. x

Face Value = Rs.50

Discount = 20% of 50

= 20/100 x 50

= Rs.10

Market Value = 50 – 10 = Rs.40

Dividend = 10% or 600

Number of shares = x/40

Dividend = Face value x dividend% x No. of share

600 = 50 x 10/100 x x/40

x = 4800

Rate of Return = 600/4800 x 100

= 12 1/2%

Q.6 A man invests a sum of money in Rs.100 shares paying 15% dividend quoted at 20% premium. If his annual dividend is Rs.540, calculate the rate of return on his investment.

Ans. Let, Total investment be Rs. x

Face Value = Rs.100

Discount = 15% of 100

= 15/100 x 100

= Rs.15

Market Value = 100 + 15 = Rs.115

Dividend = 15% or 540

Number of shares = x/115

Dividend = Face value x dividend% x No. of share

540 = 100 x 15/100 x x/115

x = 4140

Rate of Return = 540/4140 x 100

= 12 1/2%

Q.7 Mr. Satendra holds 1500, Rs.100 shares of a company paying 15% dividend annually quoted at 30% premium. Calculate rate of return on his investment.

Ans. Number of shares = 1500

Face Value = Rs.100

Premium = 30% of 10 = 30

Market value = 100 + 30 = Rs.130

Total Investment = 1500 x 130

= Rs.195000

Dividend = 15%

Dividend = 100 x 15/100 x 1500

= 22500

Rate of Return = 22500/195000 x 100

= 11 7/3%

Q.8 Rs.100 shares of a company are sold at a discount of Rs.20. If the return on the investment is 15%, find the rate of dividend declared.

Ans. Face value = Rs.100

Market value = Rs.80

Rate of Return = 15%

= 80 x 15/100

= Rs.12

Dividend = Rs.12

Dividend = 12/100 x 100

= 12%

Q.9 A company declared a dividend of 14%. Find the market value of Rs.50 shares, if the return on the investment was 10%.

Ans. Face value = Rs.50

Dividend = 50 x 14/100

= Rs.7

Let, market value be Rs.x

Rate of Return = 10%

x * 10/100 = 7

x = 70

So, Market value = Rs.70

Q.10 Mrs. Gupta invested Rs.16500 on Rs.100 shares at a premium of Rs.10 paying 15% dividend. At the end of the year, she sells the shares at a premium of Rs.20. Find her rate of return.

Ans. Total Investment = Rs.16500

Face value = Rs.100

Market value = Rs.110

Number of share = 16500/100

= 150

Dividend = 100 x 15/100 x 150

= 2250

Selling price of share = 100 + 20 = Rs.120

Sale value = 120 x 150 = Rs.18000

Profit = 18000 – 16500

= Rs.1500

Net Profit = 2250 + 1500

= 3750

Rate of Return = 3750/16500 x 100

= 250/11 = 22 8/11%

Q.11 Mr. Verma invested Rs.18000 on Rs.100 shares at a discount of Rs.25 paying 12% dividend. At the end of the year, he sells the shares at a discount of Rs.10. Find his rate of return.

Ans. Total Investment = Rs.18000

Face value = Rs.100

Market value = 100 – 25 = Rs.75

Number of share = 18000/75

= 240

Dividend = 100 x 12/100 x 240

= 2880

Selling price of share = 100 – 10 = Rs.90

Sale value = 90 x 240 = Rs.216000

Profit = 21600 – 18000

= Rs.3600

Net Profit = 2880 + 3600

= Rs.6480

Rate of Return = 6480/18000 x 100

= 36%

FAQ’s related to Class 12 Applied Maths Chapter 12 on Return, Growth And Depreciation:

Q.1 What is the concept of “Return” in finance?

Ans. In finance, “Return” refers to the profit or loss derived from an investment over a particular period. It is typically expressed as a percentage of the original investment amount. Returns can be in the form of interest, dividends, capital gains, or any other form of financial gain from an investment.

Q.2 What is “Depreciation,” and why is it important?

Ans. Depreciation is the process of allocating the cost of a tangible asset over its useful life. It represents the wear and tear, deterioration, or obsolescence of an asset. Depreciation is important for accounting and tax purposes as it helps businesses allocate costs and manage their financial statements by reducing the value of assets over time.

Q.3 What are the common methods of calculating depreciation?

Ans.

  • Straight-Line Method: This method spreads the cost of the asset evenly over its useful life. The formula is:

Depreciation Expense = (Cost of Asset − Salvage Value)/Useful Life

  • Declining Balance Method: This method applies a constant rate of depreciation to the reducing book value of the asset each year.

Q.4 How does inflation affect returns and growth?

Ans. Inflation reduces the purchasing power of money, which can affect the real returns and growth of investments. If the inflation rate is higher than the nominal return on an investment, the real return could be negative, meaning the investor’s purchasing power decreases despite earning nominal returns.

These are a few Frequently Asked Questions relating to Class 12 Applied Maths Chapter 13

In Class 12 Applied Maths chapter 13, you will explore fascinating topics that form the backbone of practical problem-solving techniques. Through clear explanations, illustrative examples, and step-by-step solutions, you’ll grasp complex concepts effortlessly. Whether you’re preparing for exams or simply eager to deepen your mathematical understanding, Class 12 Applied Maths Chapter 13 promises an enriching learning experience that will set you on the path to success. Class 12 Applied Maths Chapter 13, we delve deep into advanced mathematical concepts that are crucial for understanding.


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