Mathematics of FinanceMCQPYQ June 24Question 1258 of 512
All Questions

An amount 4,500\displaystyle 4,500 becomes 7,200\displaystyle 7,200 in 2\displaystyle 2 years at simple interest rate of:

Options

A15%\displaystyle 15\%
B20%\displaystyle 20\%
C30%\displaystyle 30\%
D40%\displaystyle 40\%
For any discrepancies in this question, email contact@cadada.in

Correct Answer

Option c30%\displaystyle 30\%

All Options:

  • A15%\displaystyle 15\%
  • B20%\displaystyle 20\%
  • C30%\displaystyle 30\%
  • D40%\displaystyle 40\%

Ad

Detailed Solution & Explanation

**Derivation of Simple Interest Rate** Given: - Principal (P\displaystyle P) = Rs. 4,500\displaystyle \text{Rs. }4,500 - Amount (A\displaystyle A) = Rs. 7,200\displaystyle \text{Rs. }7,200 - Time (T\displaystyle T) = 2\displaystyle 2 years **Step 1: Calculate the Simple Interest earned (SI\displaystyle SI)** SI=AP=72004500=Rs. 2,700SI = A - P = 7200 - 4500 = \text{Rs. }2,700 **Step 2: Solve for Rate (R\displaystyle R)** SI=P×R×T100SI = \frac{P \times R \times T}{100} 2700=4500×R×21002700 = \frac{4500 \times R \times 2}{100} 2700=90R2700 = 90 R R=270090=30% per annumR = \frac{2700}{90} = 30\% \text{ per annum} Hence, **Option C** 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.

Related Comparison Tables

More Questions from Mathematics of Finance

Ready to Master Mathematics of Finance?

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

Start Practicing — It's Free