Mathematics of FinanceMCQPYQ Nov 19Question 1291 of 512
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Simple interest on 3500\displaystyle 3500 for 3\displaystyle 3 years at 12%\displaystyle 12\% per annum is

Options

A1200\displaystyle 1200
B1260\displaystyle 1260
C2260\displaystyle 2260
D2000\displaystyle 2000
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Correct Answer

Option b1260\displaystyle 1260

All Options:

  • A1200\displaystyle 1200
  • B1260\displaystyle 1260
  • C2260\displaystyle 2260
  • D2000\displaystyle 2000

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Detailed Solution & Explanation

**Derivation of Simple Interest** Given: - Principal (P\displaystyle P) = Rs. 3,500\displaystyle \text{Rs. }3,500 - Time (T\displaystyle T) = 3\displaystyle 3 years - Rate of Interest (R\displaystyle R) = 12%\displaystyle 12\% per annum **Step 1: Calculate Simple Interest (SI\displaystyle SI)** SI=P×R×T100SI = \frac{P \times R \times T}{100} SI=3500×12×3100SI = \frac{3500 \times 12 \times 3}{100} SI=35×36=Rs. 1,260SI = 35 \times 36 = \text{Rs. }1,260 Hence, **Option B** 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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