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Question 12 Marks
Prove that: 3500 ≡ 2 (mod 7)
Answer
In order to prove $3^{500} \equiv 2(\bmod 7)$, let us first find an integer $k$ such that $3^k \equiv \pm 1(\bmod 7)$.
We know that $3^1 \equiv 3(\bmod 7)$
$
\begin{array}{l}
\Rightarrow 3^2 \equiv 3 \times 3=9 \equiv 2(\bmod 7) \\
\Rightarrow 3^3 \equiv 3 \times 2(\bmod 7) \\
\Rightarrow 3^3 \equiv 6 \equiv-1(\bmod 7)
\end{array}
$
Thus, we find that $3^3 \equiv-1(\bmod 7)$. Let us now express $3^{500}$ in terms of $3^3$.
$
3^{500}=\left(3^3\right)^{166} \times 3^2
$
Now,
$3^3 \equiv-1(\bmod 7)$
$\Rightarrow\left(3^3\right)^{166} \equiv(-1)^{166}(\bmod 7)\left[\because a \equiv b(\bmod m) \Rightarrow a^n \equiv b^n(\bmod m)\right]$
$\Rightarrow\left(3^3\right)^{166} \times 3^2 \equiv(-1)^{166} \times 3^2(\bmod 7)[\because a \equiv b(\bmod m) \Rightarrow a x \equiv b x(\bmod m)]$
$\Rightarrow 3^{500} \equiv 9(\bmod 7)$
But, $9 \equiv 2(\bmod 7)$. Thus, we obtain
$
\begin{array}{l}
3^{500} \equiv 9(\bmod 7) \text { and } 9 \equiv 2(\bmod 7) \\
\Rightarrow 3^{500} \equiv 2(\bmod 7)[\because a \equiv b(\bmod m), b \equiv c(\bmod m) \Rightarrow a \equiv c(\bmod m)]
\end{array}
$
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Question 22 Marks
Mr. Bharti wishes to purchase a flat for ₹ 6000000 with a down payment of ₹ 1000000 and balance in equal monthly payments for 20 years. If bank charges 7.5 % p.a. compounded monthly, calculate the EMI. (Given (1.00625)240 = 4.4608)
Answer
Cost of flat = ₹ 6000000, cash payment ₹ 1000000
So, balance = ₹ 6000000 - ₹ 1000000 = ₹ 5000000
Given P = ₹ 5000000, n = 12 $\times$ 20 = 240 months, $i=\frac{7.5}{1200}=0.00625$
$\therefore EMI =\frac{5000000 \times 0.00625 \times(1.00625)^{240}}{(1.00625)^{240}-1}$
$=\frac{5000000 \times 0.00625 \times 4.4608}{3.4608}$ = ₹40279.70
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Question 32 Marks
How much money is needed to endure a series of lectures costing ₹2,500 at the beginning of each year indefinitely, if money is worth 5% compounded annually?
Answer
Here we have to find how much money should be invested now that would provide for an unlimited number of payments of ₹2,500 each year, the first due now. So, it is a perpetuity of ₹2,500 payable at the beginning each year, if money is worth 5% compounded annually. Thus, we have
$
R=2,500 \text { and } i=\frac{5}{100}=0.05
$
Let $P$ be the present value of this annuity. Then,
$P = R +\frac{R}{i} \Rightarrow P =$ ₹$\left(2,500+\frac{2,500}{0.05}\right)=$ ₹52,500
Hence, required sum of money is ₹52,500.
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Question 42 Marks
By using properties of definite integral, evaluate: $\int_{-1}^1 e^{|x|} d x$
Answer
Let $f ( x )= e ^{ IxI } \Rightarrow f (- x )= e ^{|- x |}= e ^{| x |}= f ( x )$
$\Rightarrow f(x)$ is an even function; therefore,
$
\begin{array}{l}
\therefore \int_{-1}^1 e^{|x|} d x=2 \int_0^1 e^{|x|} d x=2 \int_0^1 e^x d x(\because 0 \leq x \leq 1 \Rightarrow|x|=x) \\
=2\left[e^x\right]_0^1=2\left(e^1-e^0\right)=2(e-1)
\end{array}
$
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Question 52 Marks
Find the present value of a sequence of payments of ₹8,000 made at the end of each 6 months and continuing forever if money is worth 4% compounded semi-annually.
Answer
Let $P$ be the present value of the given perpetuity. It is given that $R=8,000$ and $i=\frac{4}{200}=0.02$
$\therefore P =\frac{R}{i} \Rightarrow P =$ ₹ $\frac{8,000}{0.02}$ = ₹400,000
Hence the present value of the given perpetuity is ₹400,000. It means that a sum of ₹400,000 invested now at 4% compounded semi-annually will fetch ₹8,000 semi-annually forever.
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Question 62 Marks
Abhay bought a mobile phone for ₹ 30,000. The mobile phone is estimated to have a scrap value of ₹ 3,000 after a span of 3 years. Using the linear depreciation method, find the book value of the mobile phone at the end of 2 years.
Answer
We have,
$
\begin{array}{l}
r=\frac{10}{100}=0.1 \\
m=12 \\
r_e=\left(1+\frac{r}{m}\right)^m-1 \\
=\left(1+\frac{0.1}{12}\right)^{12}-1 \\
=(1.00833)^{12}-1 \\
=1.1047-1 \\
=0.1047
\end{array}
$
Thus, the effective rate of interest is $10.47 \%$, which means that the rate of $10.47 \%$ compounded annually yield the same interest as the nominal rate $10 \%$ compounded monthly.
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