Mathematics of FinanceMCQPYQ May 19Question 1181 of 512
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A man deposited 8,000\displaystyle 8,000 in a bank for 3\displaystyle 3 years at 5%\displaystyle 5\% per annum compound interest, after 3\displaystyle 3 years he will get

Options

A9200\displaystyle 9200
B8800\displaystyle 8800
C9000\displaystyle 9000
D9261\displaystyle 9261
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Correct Answer

Option d9261\displaystyle 9261

All Options:

  • A9200\displaystyle 9200
  • B8800\displaystyle 8800
  • C9000\displaystyle 9000
  • D9261\displaystyle 9261

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Detailed Solution & Explanation

**Derivation of Future Value** Given: - Principal (P\displaystyle P) = Rs. 8,000\displaystyle \text{Rs. }8,000 - Time (t\displaystyle t) = 3\displaystyle 3 years - Rate of Interest (r\displaystyle r) = 5%\displaystyle 5\% per annum compounded annually **Step 1: Calculate the future value (A\displaystyle A)** A=P(1+r)tA = P(1 + r)^t A=8000(1+0.05)3A = 8000(1 + 0.05)^3 A=8000(1.05)3A = 8000(1.05)^3 A=8000×1.157625=Rs. 9,261A = 8000 \times 1.157625 = \text{Rs. }9,261 Hence, **Option D** is the correct answer.

About This Chapter: Mathematics of Finance

Paper

Paper 3: Quantitative Aptitude

Weightage

12-16 Marks

Key Topics

Simple & Compound Interest, Annuity, Perpetuity

The most important mathematical chapter in the entire syllabus. It covers Simple Interest (SI), Compound Interest (CI), Nominal vs Effective rates, Present and Future Value, Annuities (Ordinary and Due), Sinking Funds, and Perpetuities. The concepts learned here are applied heavily in CA Intermediate and Final.

View Official ICAI Syllabus

Exam Strategy Tip

Guaranteed 12-16 marks. Master your calculator! Learn the 'GT' and compound interest M+/M- tricks to solve annuity questions in 10 seconds without writing long formulas.

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