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Chapter 9 of 10
Formula Sheet

Financial Mathematics — Formula Sheet

CBSE · Class 12 · Applied Mathematics

3 formulas from Financial Mathematics (CBSE Class 12 Applied Mathematics) on one page, grouped by topic. Includes Two methods exist.

54 questions25 flashcards3 formulas & key relations5 concepts

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3 Entries · 2 Sections

Formulas and Key Relations

Perpetuity and Sinking Funds

Present value of perpetuity = R/i (payments at end) or R + R/i (payments at beginning)

Key relations

The periodic payment required is R = A/S(n|i)

Two methods exist

Flat Rate Method where EMI = (P+I)/n, and Reducing Balance Method where R = P(i)/[1-(1+i)^(-n)].

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Frequently Asked Questions

What are the important topics in Financial Mathematics for CBSE Class 12 Applied Mathematics?
Key topics in Financial Mathematics include Perpetuity and Sinking Funds, Valuation of Bonds, EMI and Loan Amortization, Rates of Return and CAGR. Study these first, then practise questions on each for the CBSE Class 12 board exam.
How many formulas are in Financial Mathematics?
This sheet lists 3 formulas from Financial Mathematics, grouped by topic. Learn what each symbol stands for so you can apply the formula, not just recall it.
How should I revise Financial Mathematics for the CBSE Class 12 board exam?
Learn the core ideas first, then work through the 54 practice questions on Financial Mathematics. Revise definitions regularly and use flashcards for quick recall before the exam.

Sources & Official References

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

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Quizzes, flashcards, an AI doubt solver and a study plan for CBSE Class 12 Applied Mathematics. Free to start, no card needed.