Mathematics in Class 12 is the extension of the beginning of the transition you saw in your Class 11. In your Class 11th, You jumped from easy simple interest questions to complex calculus problems.

We are going to talk about Class 12 Financial Mathematics in detail in this article. Along the way, we will try to build on the foundation of CBSE Financial Mathematics you have already built in your Class 11th.

We will show you the applications of mathematical concepts you have been using your whole life through practise, day to day activities and in the class of your schools and tuitions.

What is CBSE Class 12 Basics of Financial Mathematics?

We have already discussed in Class 11th Financial Mathematics about the significance, utility and application of Financial Mathematics. Let us go through it once again.

So as per the leading Institute in the field of Finance Mathematics, NC State University of US, “Financial Mathematics is the application of mathematical methods to financial problems. Some of the concepts used in Financial mathematics are quantitative finance, financial engineering, mathematical finance, and computational finance. Quite often, Financial mathematics is regarded and interchangeably used for these concepts”

Explaining in simpler words, Maths used in relation to cash/ money/ Finances is Finance Mathematics. Now for you, it could be a petty change for a pen or notebook. For your parents, it could be bills and family expenses.

Central Board of Secondary Education, CBSE does not differentiate Class 12 Financial Mathematics as a separate subject. It instead is designed to be under the ambit of CBSE Class 12 Mathematics. The board has planned CBSE Class 12 Financial Mathematics course to assist students to create and progress their mathematical skills and techniques related to all kinds of Finances.

The aim of the CBSE Class 12 Financial Mathematics Syllabus is to appreciate the significance and utility of mathematics that makes it mandatory for almost every other finance-related field.

Before we dwell deeper into CBSE Class 12 Financial Mathematics, let us give you a brief introduction of what we are dealing in with this article. We have already understood that Financial Mathematics is about anything related to Finances. We will now get into the depth of the subject and break it wide open for you.

We will also talk about the CBSE Financial Mathematics Syllabus, its weightage in your CBSE Class 12 Applied Maths Board Exam and what the subject expects from you.

We shall also discuss the importance of your CBSE Board Preparation strategy related to the subject while covering important preparation tips and how you should plan your CBSE Class 12 Financial Mathematics Preparation strategy.

In addition, we will share important notes, also guide you towards choosing the leading books available in the market, help you sift through sample practise questions and CBSE Class 12 Financial Mathematics Previous Year Papers.

And finally, when we have understood and gone through all the nuances of the subject, we will conclude this article by discussing and sharing most Frequently Asked Questions and queries and doubts of students regarding Applied Mathematics and CBSE Class 12 Financial Mathematics

Syllabus for CBSE Class 12 Financial Mathematics

Study and Knowledge of CBSE Class 12 Financial Mathematics Syllabus is of utmost importance. it is mandatory to understand the depth of subjects before the exam.

It is very important for you to understand the syllabus of Class 12 Financial Mathematics. The Preparation for CBSE Class 12 Financial mathematics, can not be done without the knowledge of Syllabus.

Class 12 Syllabus of Financial Mathematics encapsulates topics such as Perpetuity, Sinking Funds, Valuation of Bonds, EMIs, rates of Return, Interest, Growth rate, Knowledge of Stocks and Shares, Debentures, and Concept of Appreciation and Depreciation.

These topics become the foundation of Financial Mathematics that you will be learning in your higher studies. Some of the topics should be familiar while some will definitely be alien to you.

However, even the topics that are new for you will have applications from what you have already studied up to your Class 11th. Let us look at the syllabus of Class 12 Financial Mathematics in detail.

  • Perpetuity, Sinking funds
  • Valuation of Bonds (Present value approach and Relative price approach)
  • Calculation of EMI
  • Calculation of returns, nominal rate of return, effective rate of interest
  • Compound annual growth rate
  • Stock, shares and debentures
  • Linear method of depreciation

CBSE Class 12 Financial Mathematics Syllabus helps you form a complete opinion about the subject that guides your preparation and serves as a pillar in your preparation strategy.

The more time you spend with the Financial Mathematics syllabus, the better your relationship with the subject becomes. Hence it is highly recommended that you spend time regularly studying the syllabus of Class 12 Financial Mathematics given above.

What to Expect in the Exam Related to CBSE Class 12 Basics of Financial Mathematics?

A teacher once told me, “Syllabus is the guiding light” and it stands true for almost all the exams I have appeared so far. If you stick to the syllabus, pay attention to the notes, cover solved and unsolved questions from your books and do a regular and balanced revision, you are going to excel at the test. And it is a fact.

We will now be looking at what the subject such as CBSE Class 12 Financial Mathematics expects from us. And how are we supposed to approach the subject to be great at it? To begin with, CBSE Class 12 Financial Mathematics expects us to develop a sound mathematical language and symbolism to communicate and relate everyday experiences mathematically.

In our quarterly, yearly and half-yearly examinations, we should be ready for some loaded calculations involving some huge numbers. The questions are expected to be straight forward and they might even resemble some from NCERT and reference textbooks.

The questions in CBSE Class 12 Financial Mathematics test our adaptability to fast yet simple arithmetic with real-life numbers. We should not be afraid of dealing with sums of large numbers. Instead, we should be agile and vigilant for any errors on the part of our calculations.

CBSE Class 12 Financial Mathematics also expects us to reinforce logical reasoning skills. The students are required to formulate and establish mathematical arguments, frame examples, find counterexamples, validate equations and others.

During the exam, the students will be engaged in mathematical investigations throughout the paper. They will be expected to actively build connections within mathematical topics and with other disciplines of real life.

CBSE Financial Mathematics utilises the application of other areas of mathematics too in addition to Arithmetic. Areas such as Algebraic methods are used as a means of representation. They are also used as a problem-solving tool in CBSE Class 12 Financial Mathematics. It is something you should expect in Class 12 Financial Mathematics Examination.

When you are through with CBSE Class 12 Financial Mathematics, you will know how to calculate your taxes. You will know how to find the value of an asset in the present time and based on its current value, you will also be able to predict it for a future date. You will also have developed a sound understanding of shares and Values of Stocks, Appreciation of assets and their depreciation too.

As a continuation of your Class 11, You will know to calculate annuity (upto 3 periods), bills and tariff rates and surcharges and services charges and others.

Another important thing that you will have learned in CBSE Class 12 Financial Mathematics will be the valuation of bonds and Calculation of returns, the nominal rate of return, the effective rate of interest

Study Tips for excelling at CBSE Class 12 Financial Mathematics

CBSE Class 12 Financial Mathematics, like every other subject demands thorough study and consistent revision for success. Since Financial Mathematics is a subset of CBSE Class 12 Mathematics, the aspirants are required to spend some extra time learning the concepts and solving as many problems as possible.

This practice will make them comfortable and friendly with the concepts of the subject.

We will be looking at some major tips that your CBSE Class 12 Financial Mathematics Preparation should be based around. You should at regular intervals assess your preparation based upon the following pillars and your progress in them.

Going Through the CBSE Class 12 Financial Mathematics Syllabus

As we mentioned before, Financial Mathematics’ Syllabus is the most important when it comes to starting and planning your Financial Mathematics Preparation.

With the help of Syllabus, you will know while looking at any sub-topic, whether it is relevant or not. That level of understanding will only be able to develop if you have studied the syllabus thoroughly and are aware of every nook and corner of it.

Use Real-Life Examples:

Since Financial mathematics is all about using maths to calculate your finances, you should introduce real-life problems in Financial Mathematics. Practising something original and from the real world will clear all your doubts. It will also enhance your understanding of the subject multi-fold. Although solving a question from the book is important, this unconventional method is the real deal and should be practised using the concepts of Financial Mathematics Textbook. Real-life examples will also teach you to deal with problems of multiple ad real-life constraints.

Calculate your parents' Taxes/ EMIs/ Stock Shares

In continuation to the previous note, you should assist your parents’ in doing their taxes to better understand the nuances in it. Additionally, you can use the data from BSE and NASDAQ to solve questions. It will help you understand how financial Mathematics is an elemental part of everyone’s daily life.

Solve a Reference Book

CBSE Class 12 Financial Mathematics Reference Books are great additions to textbooks. In this time of stiff competition and hunger to learn more and more every day, Reference Books are the great go-ahead for students. Also, you are at a standard/class where one needs to develop a sound understanding of their subjects to be able to score consistently well in their exams. And doing a reference book is an elemental part of it.

Practise Previous Year papers

CBSE Class 12 Financial Mathematics Previous Year papers will help you take a spin in the mind of your examiner. Because every exam (including CBE Boards of 10 and 12) and examiner have a pattern which is followed every year. It is true of every test, whether at the school level or university level or competitive scale. Solving Previous Year papers will keep you up and running with the style of questions asked in previous years and the best methods used to calculate the answer.

Don’t depend on calculators. Use your head

The more you solve CBSE Class 12 Financial Mathematics sums in your head, the better you become at it. Consider it like a workout for your brain. And like we said earlier, the way bicep curls helps your bicep, those sums help your brains increase calculation speed, mental memory and storage ability. Which in turn helps you solve even bigger and more complex questions later.

Study Materials for CBSE Class 12 Financial Mathematics

In your journey to acing the CBSE Class 12 Financial Mathematics exam, Books and Notes are your biggest friend and mock papers or previous year papers are your cheerleaders. In place to the hours of tuition and classes and online lectures and practise sessions and quizzes of school and Olympiads of organisations, CBSE Class 12 Financial Mathematics books are the best.

CBSE Class 12 Financial Mathematics Books help you stay on the right path because subjects such as mathematics have no boundary and you never know when you are reading something outside your CBSE Class 12 Financial Mathematics syllabus and gathering irrelevant information.

Text Books, Reference Books, clubbed with your CBSE Class 12 Financial Mathematics Syllabus is the excelsior for your examination. Let us take a look at the list of CBSE Class 12 Financial Mathematics reference books you should be reading/ studying while preparing for the Financial Mathematics Exam.

  • Suncos, Handbook for Mathematics
  • Master the NCERT Mathematics from Flipkart

Sample Questions for Financial Mathematics

Follow the list of CBSE Class 12 Financial Mathematics sample questions provided to you. Let them help you develop an independent idea and understanding of the subject before you begin studying it. As mentioned in the syllabus, the topics under Class 12 Financial Mathematics range from Simple Interest, Compound Interest and reach up to the level of annuities, taxes, and rebates.

We have found a few questions from most topics to help you understand the type of question and knowledge that a Financial Mathematics Exam at Standard 12 expects from you.

  1. Calculate the needed amount that must be invested every year so that the total amount sums up to Rs. 3,00,000 by the end of 10 years. The rate of interest is 10%, compounded annually.
  2. Ram makes an investment of Rs. 3,000 for two years. He gets a rate of interest of 12%. Furthermore, calculate the future value of the investment.
  3. Radha wants to retire from her job and get hold of Rs. 3,000/month. She wants the money to go to the future generation after she dies. She will earn an interest rate of 8% compounded annually. What is the total amount she will need to achieve the perpetuity goal?
  4. Suppose that the rate of discount is 7%. So, how much one must pay to receive Rs. 50 that grows at an annual rate of 5%, forever?
  5. Rahul plans on buying a 3-year bond having Rs. 1000 par value at an interest rate of 10%. Find the price at which one can purchase the bond after maturation at par and if Rahul requires the return of 14%.
  • Rs. 915
  • Rs. 907
  • Rs. 902
  • Rs. 917.
  1. Find the EMI for a property which is mortgaged of principal amount Rs. 5,00,000 at a rate of interest, 3.5% for a period of 10 years.
  • Rs. 1657
  • Rs. 1647
  • Rs. 1523
  • Rs. 1547
  1. In a bank, an amount of Rs. 20,000 is deposited for one year. The rate of interest is 8% per annum and is compounded semi-annually. What is the effective rate of interest?
  • 8 per cent
  • 8.08 per cent
  • 8.16 per cent
  • 8.22 per cent

Sample Question Paper for CBSE Class 12 Applied Maths Financial Mathematics

CBSE Class 12 Financial Mathematics Sample papers are the best resource for practising for CBSE Financial mathematics. Subject matter Experts including higher school teachers, book authors, university lecturers, assistant professors come together to form sample papers for students to practise.

By solving CBSE Class 12 Financial Mathematics Sample Papers, aspirants will get a basic idea about the exam pattern, level of difficulty, types of questions asked in the CBSE Class 12 Board examination. This will help them gauge their preparation and make adjustments to their strategy.

1)  Basic

2)  Standard

Sample papers used to be an important pillar of my preparation strategy during my higher secondary years. Hence, it is advisable for you to keep a regular flow of practice sessions with sample papers in your CBSE Class 12 Financial Mathematics preparation strategy and ace the exam later on.


I am stressed over Financial Mathematics? How to get over it?

Acknowledge your negative thoughts regarding your CBSE Class 12 Financial mathematics Strategy. Process them. Reason with them. You'll realise how unrealistic they are. Challenge the thoughts that say you cannot do Financial mathematics Problems and you can't succeed. Remind yourself that it is just a subject and like you have aced all your subjects till now, you will also ace this one.

What if I do badly in Financial Mathematics?

It is okay if you do bad, after all it is just an exam. That is, it. it is not the end of the world. People/ students make mistakes, sometimes, even blunders in their exams, but that doesn’t make them unintelligent. Learn from your mistakes and use them as guiding light for your next exam.

How to attempt CBSE Class 12 Financial Mathematics Sample papers?

  • Start a timer.
  • Make it a exam room like condition
  • Keep all your stationery, water bottle and everything you need with you.
  • Do not leave your desk until the timer stops.
  • Answer each and every question as guided.
  • Ask your folks not to disturb you while you are giving the exam.
  • Do not exceed the timer.
  • Do not cheat.
  • Do not take help from the book.

How to analyse CBSE Class 12 Financial Mathematics Sample paper Performance?

  • Consider yourself a teacher while analysing your Financial mathematics Sample papers.
  • Check each and every step.
  • Do not assume anything.
  • If something is missing in the solution, or something is not as clear as it should be, penalise yourself for that.
  • Calculate the total marks and reduce 10% for exam related frenzy.
  • Additionally, as a post-test exercise, Divide the topics asked into three lists of

    • Stronghold,
    • Territorial, and
    • Alien

    Strongholds would be the ones you are best at and no question can steal marks away from you in these topics. Territorial would be a list of topics that you are good at but still has room for improvement. Alien topics would be the list of topics that are totally new to you and you never know how to begin in questions from these topics.


What if I don't get the marks I'm expecting in Financial Mathematics?

It is okay. You know what your stronghold, territorial and alien subjects are. Make a realistic expectation of how you should be performing in the tests. And keep updating that list on the basis of your performance

How do I deal with my family's disappointment if my results are not good in CBSE Class 12 Applied Maths?

Remember. This is your exam. The person that is and should be most affected by the result is you. What matters is how you feel about your result and performance. When it comes to family and academics, things go a little over the board, no doubt.

What you can do is;

  • Be open and honest with them.
  • Converse your feelings about the result and what you think went wrong, if any did.
  • Reassure them of your concerns and efforts.
  • Most importantly, Don’t have any negative bias against your parents because sometimes people need just a little more reassurance.