Mathematics for FinancePYQ Nov 18Question 1179 of 512
All Questions

A bank pays 10%\displaystyle 10\% rate of interest compounded annually. A sum of Rs. 400\displaystyle \text{Rs. }400 is deposited in the bank. The amount at the end of 1\displaystyle 1 year will be

Options

ARs. 440\displaystyle \text{Rs. }440
BRs. 439\displaystyle \text{Rs. }439
CRs. 441\displaystyle \text{Rs. }441
DRs. 442\displaystyle \text{Rs. }442
For any discrepancies in this question, email contact@cadada.in

Correct Answer

✅ Option a — Rs. 440\displaystyle \text{Rs. }440

All Options:

  • ARs. 440\displaystyle \text{Rs. }440
  • BRs. 439\displaystyle \text{Rs. }439
  • CRs. 441\displaystyle \text{Rs. }441
  • DRs. 442\displaystyle \text{Rs. }442

Detailed Solution & Explanation

**Derivation of Compound Interest Value** Given: - Principal (P\displaystyle P) = Rs. 400\displaystyle \text{Rs. }400 - Rate of Interest (r\displaystyle r) = 10%\displaystyle 10\% per annum - Time (t\displaystyle t) = 1\displaystyle 1 year - Compounded annually **Step 1: Calculate the future value (A\displaystyle A) at the end of 1\displaystyle 1 year** Since the compounding is annual and the duration is 1\displaystyle 1 year, the amount is: A=P(1+r)tA = P(1 + r)^t A=400(1+0.10)1A = 400(1 + 0.10)^1 A=400×1.10=Rs. 440A = 400 \times 1.10 = \text{Rs. }440 Hence, **Option A** is the correct answer.

More Questions from Mathematics for Finance

Ready to Master Mathematics for Finance?

Practice all 512 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free