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Important Questions

Basics of Financial Mathematics

CBSE · Class 11 · Applied Mathematics

Most important questions from Basics of Financial Mathematics for CBSE Class 11 Applied Mathematics board exam 2026. MCQs, short answer, and long answer questions with marks.

45 questions25 flashcards5 concepts

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45 Questions·
multiple choicemultiple correct

Sample Questions

1multiple correct

Which of the following statements about compound interest are correct?

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Interest is calculated on principal plus accumulated interest, Compound interest is always greater than simple interest for same period, The formula is A = P(1 + r)ⁿ

Compound interest calculates interest on principal plus accumulated interest, making it larger than simple interest. Formula A = P(1 + r)ⁿ is correct. Higher compounding frequency increases the final amount.

2multiple choice

If the effective annual rate is 10.25% when interest is compounded semi-annually, what is the nominal rate?

Show answer

10%

Using effective rate formula: 1.1025 = (1 + r/2)². Taking square root: 1.05 = 1 + r/2. So r/2 = 0.05, therefore r = 10%. Students often confuse nominal and effective rates.

3multiple choice

Calculate the future value of an ordinary annuity of ₹2,000 per year for 3 years at 6% interest.

Show answer

₹6,372

Using FV = PMT[(1+r)ⁿ - 1]/r. FV = 2000[(1.06)³ - 1]/0.06 = 2000[1.191 - 1]/0.06 = 2000 × 0.191/0.06 = 2000 × 3.186 = ₹6,372. Common error: using annuity due formula.

4multiple correct

Which factors affect the calculation of Income Tax in India?

Show answer

Gross total income, Deductions under Section 80C, Age of the taxpayer, Tax slab rates

Income tax depends on gross income, allowable deductions, age (different slabs for senior citizens), and applicable tax rates. Marital status doesn't directly affect tax calculation in India.

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Frequently Asked Questions

What are the important topics in Basics of Financial Mathematics for CBSE Class 11 Applied Mathematics?
Basics of Financial Mathematics covers several key topics that are frequently asked in CBSE Class 11 board exams. Focus on the core concepts listed on this page and practise related questions to build confidence.
How to score full marks in Basics of Financial Mathematics — CBSE Class 11 Applied Mathematics?
Understand the core concepts first, then work through the 45 practice questions available for this chapter. Revise formulas and definitions regularly, and use flashcards for quick recall before the exam.
How many important questions are there in Basics of Financial Mathematics?
There are 45 practice questions available for Basics of Financial Mathematics. These cover multiple question types including MCQs, short answer, and long answer questions.

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Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

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