Mathematics of FinanceMCQPYQ June 19Question 1192 of 512
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If P=Rs. 5,000\displaystyle P = \text{Rs. }5,000 R=15%\displaystyle R = 15\% T=412\displaystyle T = 4 \frac{1}{2} years using i=PTR100\displaystyle i = \frac{PTR}{100} then I\displaystyle I will be

Options

ARs. 3,375\displaystyle \text{Rs. }3,375
BRs. 3,300\displaystyle \text{Rs. }3,300
CRs. 3,735\displaystyle \text{Rs. }3,735
DNone of these
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Correct Answer

Option aRs. 3,375\displaystyle \text{Rs. }3,375

All Options:

  • ARs. 3,375\displaystyle \text{Rs. }3,375
  • BRs. 3,300\displaystyle \text{Rs. }3,300
  • CRs. 3,735\displaystyle \text{Rs. }3,735
  • DNone of these

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Detailed Solution & Explanation

**Derivation of Simple Interest** Given: - Principal (P\displaystyle P) = Rs. 5,000\displaystyle \text{Rs. }5,000 - Rate of Interest (R\displaystyle R) = 15%\displaystyle 15\% per annum - Time (T\displaystyle T) = 412\displaystyle 4\frac{1}{2} years = 4.5\displaystyle 4.5 years **Step 1: Calculate Simple Interest (I\displaystyle I) using the formula** I=P×R×T100I = \frac{P \times R \times T}{100} I=5000×15×4.5100I = \frac{5000 \times 15 \times 4.5}{100} I=50×15×4.5I = 50 \times 15 \times 4.5 I=750×4.5=Rs. 3,375I = 750 \times 4.5 = \text{Rs. }3,375 Hence, **Option A** 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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