List of top Applied Mathematics Questions on Financial Mathematics

Fit a straight-line trend by the method of least squares for the following data:

\[ \begin{array}{lcccccc} \text{Year:} & 2011 & 2012 & 2013 & 2014 & 2015 & 2016 \\ \text{Production (in tons):} & 210 & 225 & 275 & 220 & 240 & 235 \end{array} \]
Compute the seasonal indices by 4-year moving averages from the given data of production of paper (in thousand tons):

\[ \begin{array}{lcccccccccc} \text{Year:} & 2001 & 2002 & 2003 & 2004 & 2005 & 2006 & 2007 & 2008 & 2009 & 2010 \\ \text{Index:} & 2450 & 1470 & 2150 & 1800 & 1210 & 1950 & 2300 & 2500 & 2480 & 2680 \\ \end{array} \]
Calculate EMI under Flat-Rate System for a loan of ₹ 5,00,000 with 7.5% annual interest rate for 5 years.
The CAGR of an investment, whose starting value is ₹ 5,000 and it grows to ₹ 25,000 in 4 years, is: [Given $(5)^{0.25} = 1.4953$]
The effective rate of interest equivalent to a nominal rate of 4% compounded semi-annually, is
If the cost function and revenue function of $x$ items are respectively given as $C(x) = 100 + 0.015x^2$, $R(x) = 3x$, then the value of $x$ for maximum profit is
The demand function of a monopolist is given by $p = 30 + 5x - 3x^2$, where $x$ is quantity and $p$ is price. The marginal revenue when 2 units are sold is
The present value of a sequence of payments of ₹ 100 made at the end of every year and continuing forever, if the money is worth 5% compounded annually, is