Mathematics for FinancePYQ Dec 23Question 1257 of 512
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Mr. XYZ invested 60,000\displaystyle 60,000 in a nationalized bank in the form of fixed deposit at the rate of 7.5%\displaystyle 7.5\% per annum simple interest rate. He received 83,500\displaystyle 83,500 after the end of the term of fixed deposit. Calculate the period for which 60,000\displaystyle 60,000 was invested in fixed deposit.

Options

A3\displaystyle 3 years
B3.5\displaystyle 3.5 years
C4\displaystyle 4 years
D4.5\displaystyle 4.5 years
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Correct Answer

✅ Option a — 3\displaystyle 3 years

All Options:

  • A3\displaystyle 3 years
  • B3.5\displaystyle 3.5 years
  • C4\displaystyle 4 years
  • D4.5\displaystyle 4.5 years

Detailed Solution & Explanation

**Derivation of Fixed Deposit Tenure** *Note: The question contains a typo in the amount received, stating it is 83,500. In standard CA Foundation exam problems, the received amount is 73,500, which yields a whole-number solution of 3 years.* Given: - Principal (P\displaystyle P) = Rs. 60,000\displaystyle \text{Rs. }60,000 - Simple Interest Rate (R\displaystyle R) = 7.5%\displaystyle 7.5\% per annum - Correct Amount received (A\displaystyle A) = Rs. 73,500\displaystyle \text{Rs. }73,500 **Step 1: Calculate simple interest earned (SI\displaystyle SI)** SI=A−P=73500−60000=Rs. 13,500SI = A - P = 73500 - 60000 = \text{Rs. }13,500 **Step 2: Solve for Time (T\displaystyle T)** SI=P×R×T100SI = \frac{P \times R \times T}{100} 13500=60000×7.5×T10013500 = \frac{60000 \times 7.5 \times T}{100} 13500=600×7.5×T13500 = 600 \times 7.5 \times T 13500=4500T13500 = 4500 T T=135004500=3 yearsT = \frac{13500}{4500} = 3 \text{ years} *(Using the database value of 83,500 yields T=5.22\displaystyle T = 5.22 years).* Hence, **Option A** is the correct answer.

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